Here is what Farley said about why Ford exited the sedan market “ “The reason is very simple – we lost billions on them, and we are not in a position to lose billions on vehicles anymore,” Farley told The Smoking Tire’s Matt Farah during a recent podcast. “As a business leader, I don’t believe that the company should allocate capital to vehicles that I know we are going to lose money on.”
Ford Lightning? Mustang Mach-E?
Doublespeak at its best.
Post ID: @2eir+1t0Ddstv
Model E Guy! Back to collect down votes?
Post ID: @2ozh+1t0Ddstv
I disagree. With volume on EV's, will come profit. The public hasn't even seen the Gen-2 Model e BEV offerings yet. Be patient.
Farley thought he would be the next Elon Musk and went all in on EVs. Pushed dealers to spend millions of dollars to upgrade their facility for EV sales. He also greenlight the billion dollars to renovate the train station. Despite all the hoopla with Dianna Ross and Eminem, shouldn't that money have been better spent on improving our product? Lots of mistakes being made here.......
@2pna
That was clearly a typo as they noted labor costs were not the problem.
Let's not forget cancelling the Focus. Maybe it lost money because they insisted on keeping that cr-ppy transmission and accept the recalls and lawsuits.
Here's my guess: any new sedans will come from China, where Ford's sales are garbage yet there's a lot of capacity.
The Fusion was assembled in Hermosillo, TX.????? try 500 miles south.
obviously you have no idea what you are talking about.
Yas queen
I don’t believe that the company should allocate capital to vehicles that I know we are going to lose money on......
What the he-l is even that???
@wvq+1t0Ddstv agreed on all the gov't support for Tesla. however they did sell a lot of Model 3s. unknown profit margin. maybe they lose on each one but make it up in volume like we did with the old Escort!
this only goes up to 2023Q1 but it shows 800k since 2017 to then.
https://carfigures.com/us-market-brand/tesla/model-3
The Fusion was assembled in Hermosillo, TX.
Labor costs were not the issue. Underinvestment in the product was. Management myopia was ( let’s just build trucks and SUVs)
Ford gets credit for its commitment to commercial vehicles for sure
Unfortunately they sacrificed everything else.
Bronco is not the answer, a niche product.
Escape an overpriced also-ran.
Explorer a disaster since the 2020 launch, the 2025 refresh will help a little but not a lot.
Edge already gone
Maverick is a win for sure but not everyone wants a pickup
@qrr+1t0Ddstv - Fusion had a major problem with suppliers. Ford promised a large volume to get a better deal on parts, but Ford couldn’t deliver the sales. Why? They priced the vehicle too high just recover the cost of UAW labor. It backfired on Ford and people moved to buy other vehicles like cheap and bad Kia’s. Our cost structure is outrageous.
More Farley illogic. I wouldn't take his advice on where to go to dinner, much less on automotive outlooks.
Ford had a sedan winner on its hands when it released the first gen Fusion in 2007, then the winning continued with the modest refresh of 2010 and with the move from the Mazda to Mondeo platform in 2012. Ford did NOT lose "billions" on these products. Certain lower trim levels were categorized as "loss and low" meaning loss or low profit per unit -- but the entire vehicle line did not lose money. Ford did shoot itself in the foot with the 2012 Fusion however, when quality was a major issue at launch and beyond and it was a shame because Camrys and Accords were seen as trades on Ford Dealers lots for Fusions for the first time in a long time. Then to make matters worse, Ford did not reinvest anything significant in a refresh of the 2012 design which further eroded market share. Then the dunces announced the Fusion was "dead" in Q1 2018 -- over 3 years prior to the actual run off of the product. Talk about stupid.
Ford just does not get the long game. There will always be a market for sedans, they won't be the primary driver of profit, but they will provide entry level buyers among other things, not to mention trade ins so desperately needed especially today by Ford Dealers.
I know of what I speak -- former Ford finance team member
Switch from electric vehicles to eclectic vehicles. Problem solved.
Farley logic.
Jumbo shrimp.
Bittersweet.
You get the idea.
Why paying so much attention to a con man ?
We have to have electric cars now before it’s too late and we succumb to the effects of global warming /climate change. Planet only has 10 years left !!!
Says the guy who is behind 10 billion in losses on the EV wet dream. Bet he wishes they hadn’t separated the E vs ICE profits.
And he is still here. That’s how d-mb the BOD is.
@hkt I disagree, the Model 3 did not carry the company, the high-margin model S and VC carried the company for the first decade, the model 3 philosophy has been to make up slim margins with high volume, but that's not really working out since the coastal elitist EV market is now fully saturated and the brands are in a price war to see you can stay solvent the longest. Tesla market cap is down nearly $1T from peak. The ONLY way Tesla has remained competitive is the massive government subsidies, carbon credits and easy online purchasing (soy boys don't like negotiating). Ford has an established cash printer with the F-series and a wide economic moat thanks to the Chicken Tax, we should continue to focus on that and sc--w off with low-margin sedans and EVs
Tesla "sold" 1.79 Billion in carbon credits. Amazingly this one dimensional reasoning does not consider what the carbon INCREASE was on coal and gas fired power plants to provide the energy that was redirected from gas/diesel to electricity. Go figure, it's an Alice in Wonderland world.
@mfb+1t0Ddstv that is a really good point about tesla sedans making money. the model 3 carried that company because the orig sedan was too high end for most people. that said, the most recent crop of sedans didn't have enough headroom or legroom or any kinda room. they were made for shorter mark fields type of guys. so i have to pay 30+ grand and be cramped like in an airplane? no thanks.
Sedans are dying?!? They are the majority of vehicles on the road. Just because Ford su-ked at then doesn't mean they are dying!
Oh wait, Tesla has no sedans. THAT'S the real reason that "Me too!" Ford stopped selling them.
utx+1t0Ddstv I don't disagree with you but I will ask you this. Why is Ford in Europe? That has been a money pit nearly my entire career at Ford. I would have exited that market long ago.
As to EVs. I am an EE by education. Yes one day the market will go that route when certain things have been addressed
I know for a fact Farley and the rest of senior management were aware of these items as far back as 2017. I saw a study that went right to the top.
The way the EVs were rolled out was misleading. If you live in a city and use it for driving around town then yes it may have an application for that. but if you have a family and you live in Michigan and plan to drive to Disney then you will need that ICE vehicle. Sorry to bust your bubble or EGO.
BIrth of an ideology? Generally the market decides what they want and are willing to pay for. Social engineering a solution nobody asked for or wanted looks more like a modern day Edsel even if you try to imposed your ideas on a market with the push of a messed up gov-rnment.
You don’t see the difference between a product that is dying and one just at its birth?