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Ford: We goofed on SUVs

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by Rancid13, Aug 9, 2006.

  1. Rancid13

    Rancid13 Cool Chick with a Black Prius

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    August 09, 2006 11:28 AM ET

    Ford: Underestimated Shift From SUVs

    TRAVERSE CITY, Mich. (AP) - Ford Motor Co. misjudged the speed at which consumers would shift from truck-based sport utility vehicles to cars and crossover vehicles and now is accelerating plans to deal with it, a top company official says.

    In appearances Tuesday and Wednesday at the Center for Automotive Research Management Briefing Seminars in Traverse City, Mark Fields, Ford's president of the Americas, said the company will announce adjustments in its "Way Forward" restructuring plan by the end of September that include faster cost cuts and new products.

    The company also is considering a $1 billion investment in manufacturing and research in its home state of Michigan, Fields said.

    Full Story

    <snip>Fields said Americans now rank fuel efficiency among their top three concerns when buying vehicles, up from seven or eight a year ago, and research shows that 70 percent of people are concerned about the environment, up 10 points in the last five years.<snip>

    <snip>"The $1 billion investment in Michigan has yet to be approved by the company, he said.

    It would fund research and development of future products, advanced powertrain technologies and hybrid vehicles."

    He said the company is focusing on moving new products to market faster and making sure they are what people want to buy.<snip>
     
  2. galaxee

    galaxee mostly benevolent

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    funny, i thought they were dumping hybrids for E85... hmm.

    i'm personally glad to see the swing heading back to cars and smaller "crossovers" (apparently "slightly taller, glorified station wagon" won't move product :lol:) just for the sake of wasting less space and fewer resources... and of course the whole if i get hit by one of those it won't be as bad as if i get hit by an envoy thing.
     
  3. Salsawonder

    Salsawonder New Member

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    I am still seeing as many new monster SUVs on the road as well as more Prii. There seems to be a lot of money out there...I think some of us are just spending it more wisely and wont be so likely to regret our purchase in 2-3 months.
     
  4. donee

    donee New Member

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    Hi All,

    I think Ford also goofed on the SUV culture. Their first Hybrid, a SUV, while technically a success is a marketing mistake. I did not believe that when it first came out, but having talked to people about the Prius since I have owned one, I really did not understand how brainwashed SUV people are. There is just no going back on that overnight.

    Instead of a totally irrationalized SUV public to sell their first hybrid too, Ford should have made thier first hybrid a MINIVAN. First, its a hole in the market - they gotta have known that Toyota was going for the hybrid SUV market. Second, gas prices have gone up to make it worthwhile (hindsight I know). Third, Family buyers are out for practical solutions, not irrational ego-boosting keepin-up-with-the-jones' tipsy illusionary gas guslers. Fourth Mini-Vans are typically not used as Tow Vehicles, and SUV s are - which melds with present hybrid technology well. Fifth, the Minivan is more an around-town vehicle, which a hybrid is good for, while an SUV is more of a over-the-road weekend escape (modern diesel is better for this) machine. Lastly, Kids like to watch the MFD!

    Its easy to see this stuff now. I misunderstood the marketting stuff like everybody else back when it would have been use to anybody, too. But of course, I am not a marketing professional either. And Ford should have know how brainwashed these customers were, they helped brain-wash them!
     
  5. rudiger

    rudiger Active Member

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    <div class='quotetop'>QUOTE(donee @ Aug 9 2006, 08:27 PM) [snapback]300508[/snapback]</div>
    Yep, like DC's innovative 'Stow-n-Go' seating saving the mediocre Caravan, a hybrid Turdstar minivan might actually have saved what was otherwise considered the worst minivan on the market. As it is, the Turdstar is being cancelled after just a few years of extremely poor sales.

    AFAIK, Toyota (as usual) will be the first to the US market with a hybrid minivan and, as usual, they will likely clean-up with it.

    Ford's statement of 'We goofed on SUVs' has to be the understatement of the year. My favorite upcoming Ford blunder will be the 'new' 2008 Focus. It's going to be completely reskinned on the outside but it's going to have the same old chassis and drivetrain it's had since 1999. A really new Focus isn't scheduled to arrive until 2010 (at the earliest).
     
  6. andrewgs

    andrewgs I Pity Da Foo!

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    So, if I'm getting this correctly, then Toyota made a mistake by catering to the irrational SUV crowd with the Highlander and RX400h SUVs? I mean, Ford did have the Escape Hybrid before the Highlander, so maybe Toyota should have gone for the minivan first?
     
  7. Tideland Prius

    Tideland Prius Moderator of the North
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    Yep.

    The only reason why Toyota went for the SUV way is so that it can give the Highlander a boost until the new one comes around and also show that hybrids can be powerful if Toyota feels like it. Also, since the RX is based on the Highlander, they might as well kill two birds with one stone - first 7 passenger SUV hybrid and first luxury SUV hybrid hoping that the wealthy will buy into it and use that as a resource for R&D money.

    Problem is, Toyota was a little too ambitious and overpriced it after seeing the success of the Prius, at least in Canada. The HiHy starts at $44k and the Limited is $54k. (Base RX330 is $51k). RX400h base is $63k and the loaded Ultra Premium is north of $70k.
     
  8. theorist

    theorist Member

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    <div class='quotetop'>QUOTE(donee @ Aug 9 2006, 08:27 PM) [snapback]300508[/snapback]</div>
    The problem with this, for Ford, is that while the Escape is competitive, they haven't made a competitive minivan in years. Which raises the question, why hasn't Toyota produced a hybrid Sienna yet? Is there more unutilized space in an SUV than a minivan in which to place the hybrid components? Are minivan owners less eager to assuage the guilt that torments a small minority of SUV buyers, motivating these few to pony up for a hybrid?
     
  9. bruceha_2000

    bruceha_2000 Senior Member

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    <div class='quotetop'>QUOTE(donee @ Aug 9 2006, 08:27 PM) [snapback]300508[/snapback]</div>
    Certainly true. "I NEED the space." Maybe, for some people. A lot of people driving SUVs could carry their usual loads in a Prius with careful packing and storing. A few smaller soft bags will be more useful and easier to store AND carry than 1 hard sided case for example.
    <div class='quotetop'>QUOTE(donee @ Aug 9 2006, 08:27 PM) [snapback]300508[/snapback]</div>
    Maybe where you live. Around here, I'd bet that 90 percent of the SUVs never see a dirt road or tow anything.
    <div class='quotetop'>QUOTE(theorist @ Aug 10 2006, 11:41 AM) [snapback]300840[/snapback]</div>
    I don't understand this either. They have been selling a hybrid minivan in Japan for years.
    <div class='quotetop'>QUOTE(AndrewGS @ Aug 9 2006, 10:44 PM) [snapback]300584[/snapback]</div>
    Certainly the hybrid Highlander and RX400 are not the sales success that the Prius has been. I bet you haven't seen any dealers offering lower financing rates and other 'gimmies' on a Prius. I think the Highlander is way over priced for the average hybrid buyer. Not that people couldn't necessarily afford it, but if you are going to spend $5K or more extra for the hybrid, it better save a LOT more money in gas vs the non hybrid version or, like the Prius, have features that are desireable and not available in other vehicles.
     
  10. andrewgs

    andrewgs I Pity Da Foo!

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    <div class='quotetop'>QUOTE(theorist @ Aug 10 2006, 10:41 AM) [snapback]300840[/snapback]</div>
    Simply, logistics. The Sienna would be quite easy to build as a hybrid as it shares platforms with the Highlander and others, but the Sienna is built exclusively in the US while all of Toyota's hybrid vehicles are built in Japan. It would cost quite a bit to support building hybrid Siennas in the US, but I'm almost sure Toyota is working on it.
     
  11. Tideland Prius

    Tideland Prius Moderator of the North
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    <div class='quotetop'>QUOTE(theorist @ Aug 10 2006, 08:41 AM) [snapback]300840[/snapback]</div>

    Except that the Sienna really is used to the max. Remember that before the new Sienna was launched, Dodge said it could NOT offer AWD and the fold-into-the-floor 3rd row seats. Toyota then came out and showed that with clever packaging, it's possible to have AWD and the 3rd row fold flat seats. The spare tyre is under the 2nd row I believe and as well they managed to route the exhaust system. All that fitted. I doubt there'll be room for electric motors and a battery.

    <div class='quotetop'>QUOTE(AndrewGS @ Aug 10 2006, 11:02 AM) [snapback]300939[/snapback]</div>
    Yeah, that might change with the Camry Hybrid being built in Kentucky. The Camrys coming in are already US Made. I saw one at the dealership saying it was built in US with x% of US parts etc etc.
     
  12. mehrenst

    mehrenst Member

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    <div class='quotetop'>QUOTE(Tideland Prius @ Aug 10 2006, 12:59 PM) [snapback]301032[/snapback]</div>
    Made in USA doesn't necessarily means a lot of parts. Labor figures highly in the total x-factory price. The underlying hybrid technology could remain in Japan for a while yet.
     
  13. NuShrike

    NuShrike Active Member

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    <div class='quotetop'>QUOTE(theorist @ Aug 10 2006, 08:41 AM) [snapback]300840[/snapback]</div>
    Or better, why haven't they brought the (mild-)hybrid Estima/Previa over here?
     
  14. andrewgs

    andrewgs I Pity Da Foo!

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    <div class='quotetop'>QUOTE(Tideland Prius @ Aug 10 2006, 02:59 PM) [snapback]301032[/snapback]</div>
    The hybrid Camrys are all made in Japan for now. Same with the RX400h even though they've been building them in Canada for a while. They've been building Camrys in the US for a looong time, but there are still some coming from Japan. Actually, US-built Camrys have a majority of it's parts sourced in North America, but the Japanese Camrys use few North American-sourced parts.

    <div class='quotetop'>QUOTE(NuShrike @ Aug 10 2006, 05:58 PM) [snapback]301152[/snapback]</div>
    Safety & emissions regulations. It's hard to get a car into the American market.
     
  15. john1701a

    john1701a Prius Guru

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    <div class='quotetop'>QUOTE(NuShrike @ Aug 10 2006, 05:58 PM) [snapback]301152[/snapback]</div>
    Don't remember what the hybrid market was like not too long ago, eh? How about the price of gas?

    When HSD was introduced, the dinosaurs ruled. The roads were dominated by fast & powerful vehicles guzzling cheap gas. It was very obvious to those of us already driving Classic Prius that the perception of "overnight success" still meant several years of strong sales and media attention. Evidence of that is finally starting to reveal itself.

    So now we are at the point when people question the wisdom of choices in the past. In other words, they're looking backward instead of forward. Shouldn't we be asking about what the next step should be?

    It is very clear that people simply weren't paying attention until recently. After all, why would you if it wasn't time to purchase a new vehicle?

    Hopefully, those documents I created to explain how the various hybrid systems work will help. Got any other suggestions to help, now that people are actually thinking about hybrids?
     
  16. bisco

    bisco cookie crumbler

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    came across this interesting thread, while searching for the more recent ford to stop producing cars' thread.
     
  17. Raytheeagle

    Raytheeagle Senior Member

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    Nice 12 year blast from the past:).
     
  18. bisco

    bisco cookie crumbler

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    funny how our lovely search engine found this, but couldn't find the new one.:rolleyes:
     
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  19. Raytheeagle

    Raytheeagle Senior Member

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    At least we are “functional” today:cool:.

    Haven’t been on much today, been enjoying the fruits of the Napa region and the some what overcast day:

    2F69908B-94C7-473E-B827-9252828EB913.jpeg 4D558A2E-D082-4A70-ABBF-45CDFA250F60.jpeg

    Maybe someday you will too:whistle:.
     
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  20. bisco

    bisco cookie crumbler

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    we live in hope...
     
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