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Ford struggling to deliver on big bet on hybrids

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by Areometer, Mar 6, 2006.

  1. Areometer

    Areometer Silver Business Sponsor

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    By John D. Stoll
    Last Update: 8:58 PM ET Mar 6, 2006


    DETROIT (MarketWatch) -- Ford Motor Co. (F) is pumping millions of dollars into a marketing push and offering a fresh round of incentives to generate momentum for sales of hybrid SUVs, as demand for the vehicles shows signs of fatigue.
    Ford jumped into the segment in 2004 with the launch of its Escape Hybrid SUV in a bid to woo buyers concerned about gas prices and environmental issues. Hybrid vehicles use both a gasoline power plant and an electric motor that powers the car when it idles and accelerates.

    The auto maker's effort, however, is stumbling, according to sales reports from the auto maker and interviews with many dealers. So far this year Ford has sold only about half of the total hybrids it has capacity to make and the company recently doubled cash incentives for buyers of the vehicles to as much as $1,000 each.

    >> Read More
     
  2. Ray Moore

    Ray Moore Active Member

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    The comment in the article that attributes Toyota's greater hybrid demand to strong marketing was a load of crap. I don't think I've seen a production auto with less marketing than that of the Prius and the other Toyota hybrids.

    The reason toyota has outpaced Ford by almost 10-1 is that people are afraid to gamble on a new technology from an american automaker. They may prefer to buy american, but not at the risk of buying an unproven system. Another problem facing the big threes' entry into the hybrid market is overcoming the conservative antihybrid leanings that make up a larger percentage of their market base.

    These are my uneducated opinions on the matter and I usually try to keep those to myself, but in this case they seem accurate based on my limited exposure to the issue. I welcome other more informed PCers to straighten me out on this.
     
  3. 2Hybrids

    2Hybrids New Member

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    I agree with Ray.

    I would love to have a suv-hybrid type...but just can't get past the name badge....

    The only thing I would remotely consider on the Ford lot is a Mustang GT convertible....but they'd have to knock off about $10,000 from that over-priced toy. :p
     
  4. JackDodge

    JackDodge Gold Member

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    That and the fact that there's nothing special about the Escape hybrid that makes it stand out from its gas-only twin. People have also heard that you don't get the mileage that is claimed unless you drive slower and more carefully. I can think of a few other reasons but you're right about it being a bunch of crap that the Prius owes its success to marketing. It stands out, it gets 50 mpg and as gas prices continue to go up, it'll be coveted and one of the eternal "IT" cars.
     
  5. ken1784

    ken1784 SuperMID designer

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    Sad to hear such story.

    Ford forced Aisin to increase the production of the transaxle by 20%, 24,000/year.
    Ford still slammed Toyota claiming 20% was not enough.
    http://www.detnews.com/2005/autosinsider/0.../A01-272872.htm
    But, Ford is only selling 1,000/month.

    I believe it was not an easy task to increase an annual production 20% by any company.

    Ken@Japan
     
  6. MarinJohn

    MarinJohn Senior Member

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    Loyal American-made consumers are suffering from whiplash. Not even a year ago executives were pushing their advertising departments to sway consumer opinion AWAY from hybrids. They were adamant about their (turns out WRONG) stand and spread false rumors about hybrids which we have disected ad nausium on PC. Just because they found jesus ($$$) doesn't mean all their anti-stances haven't been taken as gospel by their 'congregations'. Sheesh, the masses are sheeple. They were 'educated' to think one way then the teacher says (like Rosanna Rosanna Danna) 'never-mind'! The power of owning a brain and USING it is what separates us early-adaptors from the sheeple.
     
  7. TonyPSchaefer

    TonyPSchaefer Your Friendly Moderator
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    There was a HyCam commercial early in the Super Bowl and then the Kermit Ford Escape commercial. I don't recall a single Prius commercial. And now that I think of it, the "Beautiful Life" commercial is the last one I remember seeing. That was 6 or more months ago?
     
  8. jayman

    jayman Senior Member

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    Like the blonde dude said.

    I rarely watch television, but have only seen one Prius ad in the 2 years I've had mine.

    Oh, wait a minute. There is a Hyundai ad that compares their car to others. For "class leading interior room" it drives past a Suburan. For "fuel efficiency" it drives past a Prius.
     
  9. Tideland Prius

    Tideland Prius Moderator of the North
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    Don't they know the best form of advertisement is word of mouth? There hasn't been a single tv Prius ad til what.. 2004? 2005? when "What if the air was cleaner" bit aired. Even that isn't advertising the Prius but rather hybrid synergy drive. Hmm, oh wait, I remember now, there was the "The world has been moving, it just hasn't been moving forward" ad both in 30 and 60 sec format. I doubt that single ad was enough to persuade 100,000 people.
     
  10. malorn

    malorn Senior Member

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    the words hybrid and prius have become synonymous, which certianly is a help for Toyota in selling priuses. It is also a hindrance in selling hihy lexus hy , honda hy and ford hy. Especially since the other Toyota/lexus hybrids were as much designed to enhance performance as to improve fuel economy.
     
  11. ohiocityprius

    ohiocityprius New Member

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    I actually like the FEH and Mercury. There are really only two reasons why I didn't buy one, first is price. In my opinion, the low end Escape is about $2k overpriced. Ford took the Toyota Highlander approach and decided to "load 'em up" with a ton of stuff and really crank the price up. I've heard the Highlander is not moving too well off the lots outside of California or bigger HOV cities anyway. Main reason... cost! High $30k+ is A LOT of money for a lot of people.

    The second reason why I didn't buy them is that I seriously sat down and looked at what I NEED to drive, not what I want to drive. I love the idea of 4X4 with a sunroof and plenty of room, a good stereo and all that. I just don't NEED an SUV, not even a little one. Plus, the gas mileage of the FEH/MM is still low compared to the Prius. I can easily live day in and day out with a Prius knowing that I've picked from the best of what the car industry has to offer for both mileage and emissions. Some people would argue that they need an SUV. Fair enough, but I don't think people really spend the time thinking through their decision to purchase an SUV. They pull into their local Target filled with an ocean of SUV's and somehow feel like they need to "blend in". As my future bumper sticker will say, "Do you REALLY need that SUV?"

    I really don't worry that much about the buy American versus Japanese thing either. Most Americans who think they are getting an American made product would certainly be disappointed to find out that it was assembled in Mexico or Canada with a significant amount of foreign components. I simply say to those who tell me otherwise, "I'll buy American when they build a car for me!".

    My advice to Ford, lower your price! You are doing it anyway with the incentives. Take a play from GM's recent playbook and just lower the sticker on the hybrids. You will get a lot more people interested when you give them the hybrid option at a reduced price.

    My two cents worth....
     
  12. JackDodge

    JackDodge Gold Member

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    heh, unless you count the last five minutes of the last episode of Six Feet Under :)
     
  13. koa

    koa Active Member

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    Because Toyota got it right with the hybrid Prius and there is a big demand for it doesn't mean Ford just needs a hybrid to boost sales. They need a hybrid that's also a great car to compete with the Prius.

    It took the Japanese a while to complete with the Dodge/Chrysler minivan. The Japanese are still trying to come out with the right full size truck. Look at the chance Mazda took with the Miata, it was a number of years before other manufacturers got on the convertible 2 seater sports car band wagon. It's easy to see there was a void once it has been filled. Not that long ago there weren't too many foreign SUV's around.

    Now that the Prius is as successful as it is, it's obvious other manufacturers will come out with their versions of high mileage vehicles that could one day be better than the Prius. It might even be a Ford.
     
  14. SomervillePrius

    SomervillePrius New Member

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    I was looking at the Ford Hybrid and it's just not the car I want. I don't want a SUV wannabe and making such a car a Hybrid only makes it a little more appealing. The Prius is as roomy if not better and have similar cargo space and gets much better gas milage.

    I do miss the 4wd that the Ford offers and the fact that my (soon to be two) dog could maybe fit all the way in the back but it wasn't enough to sway me.

    Ford needs to create an attractive hybrid. The Prius is a very smart car. Period. So is the Camry. The escape wants to look big but is small... That is a stupid way of making a car. I want something that looks small and is big... just like the Prius.

    I do hope that they redesign the car and make it more of a station wagon, bump the FE a little more and that will be an interesting car... until Toyota does the same...

    Technology wise I prefer the Ford to the Honda as they might be plug-in'able
     
  15. tochatihu

    tochatihu Senior Member

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    If one relys on the EPA numbers and works out gallons of fuel purchased per year, any of the hybrid SUVs look impressive within their categories. Also think that the article's comparison among SUVs is a bit off because they compared early 2006 sales to all of 2005, which was 12 months for Escape but only 10 and 7 months for the RX 400H and Highlander, respectively.

    Aside from all that, I expect that whoever brings a "real" hybrid pickup or minivan to the market first will tap a new market.
     
  16. gilahiker

    gilahiker New Member

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    I've been a 4x4 SUV driver for 15 years and I am actually one of the folks that needs one given what I do for a living (archaeologist). So, I looked at the Ford Escape hybrid and the Toyota Highlander hybrid and didn't go for either one (I have owned a fix-or-repair-daily and didn't want to own one again, the Highlander was too much $$$, and neither one is a true 4x4...Toyota even warns you the Highlander 4x4 isn't a real 4x4 and not to drive it like one).

    In the long run I realized I could rent or use a fleet vehicle anytime I needed to do field work and I preferred to drive a vehicle that has super low emissions, great gas mileage, was built well, and safe...there was no question that I would buy a Prius. Not only was the Prius built to be hybrid, it was built by Toyota.

    It is time that American automakers finally took their cue, and business sense, from foreign car makers...I don't know why they have to lag behind! Bigger (hummer, ford excursion, etc.) is not better...
     
  17. JackDodge

    JackDodge Gold Member

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    That's true. One car in each category seems to embody the essence of the category. The Corvette is the true American sports car (not the Mustang, sorry), the Cadillac is the American luxury car. The Saturn, American small car, the Ford Explorer started the whole SUV craze, and on and on. The hybrid segment will always be personified by the Prius.
     
  18. Tideland Prius

    Tideland Prius Moderator of the North
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    Yup. Once Honda brings in the Honda Fit Hybrid, it'll really get competitive. I mean, a car that's half the cost of a Prius, get similar mileage, it's fairly roomy for subcompact car (maybe it's even big enough to be classified compact?), with only the standard stuff like A/C, power win/locks/mirrors. Would you rather get that or a Civic DX sedan? The choice is clear.
     
  19. NuShrike

    NuShrike Active Member

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    I've been seeing a lot more Toyota "I want my MPG" billboards instead of tv commercials lately. Maybe that works just as well and cheaper too.
     
  20. robinsod

    robinsod New Member

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    Ray:
    Once again, you're right on the money. You're post is a very good assesment of what's happening.

    cheers
    don r