Ford Unveils Program to Woo “Government Motors” Owners
2009 May 24
“We’re going to be aggressive,” said Ken Czubay, head of U.S. sales and marketing for Ford. “But we’re not going to be predatory.”
Ford dealers across the country are seeing more and more Chrysler and GM trade-ins, he said.
“There are a lot of people out there that don’t like the concept that government is running these companies,” Czubay said. “They’re also disillusioned by the resale value of their products.”
Here’s Ford’s plan. Asian manufacturers also look to benefit.
Can Chrysler survive? I seriously doubt it.
Ford. The dominant domestic?
[1]
That’s an interesting line from the article. How can a Fiat-Chrysler expect to survive if the feeling in the marketplace is that its product is worth at least half of what its depreciated sticker would be? Consumers don’t buy into losses knowing so willingly. Or they are going to drive a bargain 40-50% off inventory price as a consequence. Or not buy at all.
Its-a-no-win at this point.
[2]
If I were a businessman, which I assuredly am not, I think the used car business would be looking awfully attractive, in light of Obama Motors, CAFE regulations, and goverment-mandated new economy cars.
[3]
I hope Ford IS predatory! They need to attract people based on them NOT being “Government Motors”. How about this for an ad campaign:
“You don’t want the Government in your bedroom…why would you want them in your backseat??”
[4]
The Obama Administration’s belief seems to be that Chrysler will survive by linking with Fiat, which the produces small cars that Chrysler lacks.
The problem: U.S. consumers have a wide range of small vehicle choice from the imports and Ford is really gearing up in this segment. When you combine Chrysler and Fiat, you are taking the domestic company with the worst quality and merging it with one of the European companies with a reputation for poor quality. What makes them believe merging two companies with sub-standard quality is a receipe for success?
GM has some good vehicles, has improved its quality and has dealers that rank high in customer satisfaction. GM’s problem is that its sales and marketing is headed by Mark LaNeve, a man who couldn’t sell water to people dying of thirst in the desert.
[5]
phineas gage wrote:
“If I were a businessman, which I assuredly am not, I think the used car business would be looking awfully attractive, in light of Obama Motors, CAFE regulations, and goverment-mandated new economy cars.”
For someone isn’t a businessman, you know a lot.
Used (pre-owned is the term the industry prefers) vehicles have been more profitable than new vehicles for the past decade. Dealers make 90% of their profit from used vehicle sales, service, parts and F&I.
I agree with your assessment that the used vehicle market will take off. About 41 million used vehicles are sold annually (many by private owners). It will also be a boon for indepandent repair shops. I was talking to my Goodyear dealer and he said his repair business is booming.
[6]
I had been considering buying a Pontiac G8 GXP but now I am rethinking it.
[7]
Tearsofjoy -
I really like the G8. In fact, the first time I drove up to one, I figured it was an import.
The Buick brand leads a charmed life. In my opinion, GM should have dropped Buick instead of Oldsmobile in the aerly 200s. Now, it is dropping Pontiac, which has some really nice cars. Buick has been retained because it is one of the hottest “luxury” vehicles in China. It also was the original GM brand.
See if you can get a good deal. With the Pontiac nameplate going away, the price should drop. If you are planning on keeping it for a while, it might be a smart move. If you’re planning on getting rid of it in a few years, it might not be a wise move. Residual values (the value of the car as a used vehicle) will probably drop.
With Pontiac going, how valuable is a dealership that sells Buicks to the nearly dead and GMC (rebadged Chevrolet trucks and SUVs)?
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Obama to Government Motors: ‘Let’s Roll’
[9]
more suggestions for a “We’re NOT Government Motors” ad campaign for Ford:
“Ford, building the cars & trucks YOU want…instead of what Washington DEMANDS that you want!!”
-or-
“Ford, they dont’ own US…and they don’t own YOU!”
[10]
bc3b
The G8 is an import. It is manufactured in Australia by GM’s Holden division. Over there it is sold as the Holden Commodore SSV:
http://www.holden.com.au/vehicles/Commodore/SS-V-Series
I still may purchase one. This year is the final year that it will be imported here to the States. With the new CAFE standards that require passenger cars to get an average of 37 mpg, affordable performance cars may be going the way of the dodo bird.
[11]
I’m All Right, Barack
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another future Ford ad:
“Ford, building cars & trucks that literally crush the competition!”
[voice over of video showing a Ford truck driving right over a new paper-mache GM VolksMover]
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Coming soon!!! The 2012 Pelosi GTxi SS/RT Sport Edition
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Wikipedia thread on Ford discusses the company’s aggressive plans in the small car market.
http://en.wikipedia.org/wiki/Ford
[15]
Is there any truth to the rumor that the Chrysler and GM dealerships slated to be closed were targeted on the basis of politics?
It certainly wouldn’t surprise me, given the modus operandi of Obama and company.
And there doesn’t appear to any other reasonable explanation for why an otherwise profitable dealership would be commanded to be closed by the federal government.
Good God, I can’t believe I actually typed the foregoing sentence in what I used to consider the United State of America.
[16]
Ford:
“We were the first American car company…looks like we’re the last one too!“
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phineas gage: “…what I used to consider the United State of America”
it’s like we’re in some bizarro “Fire-Sale”:
Every Freedom MUST GO! No UNreasonable intrusion refused!!
[18]
Like rwy posted in a previous thread, Obama has some serious stones. Nothing is beyond reach or out of the question.
People really need to wake up to the fact of just how radical and extreme this guy is.
[19]
“You don’t want the Government in your bedroom…why would you want them in your backseat??” — Justrand
A spin off. Remember the old Hertz commerical when the guy floats into the car and takes control? Wish I have the video skills to put Obama’s face on that actor. Then morp the closing emblem as Govt. Motors. Would be a killer vid.
[20]
Phineas -
The biggest loser among Chrysler dealers was Robert Archer in Texas, a major contributor to the state and national GOP. Based of Detroit-area dealership closings, some were “surprising,” although not necessarily politically-motivated.
Chrysler has a program called “Five Star,” which they introduced in the late 1990s. They forced dealerships to make major rennovations to their dealerships (or in some cases build new facilities) or lose their franchise.
Here are two recent articles (the first one features Archer):
http://www.nytimes.com/2009/05/23/business/23dealers.html
http://www.reuters.com/article/mergersNews/idUSN2238598220090522
[21]
The Obama Administration’s belief seems to be that Chrysler will survive by linking with Fiat, which the produces small cars that Chrysler lacks. — bc3b
Fiat emerged from bankruptcy in 2004. Their balance sheet is not healthy. Rating agencies downgraded their debt for insufficient cash reserves just recently.
[22]
Hey folks- I just wanted to give a ginormous shout out to drdog who is the reason we now have time stamped comments. Thank you drdog!!!!!!!
[23]
F-ix
I-t
A-ain
T-ony
[24]
“Ford, they dont’ own US…and they don’t own YOU!”
—-
That’s great!
Dr.Dog, thanks for helping out with the timestamps.