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Car Forum / Ford / Ford Mustang / August 2006

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Semi OT:  Toyota's march to #1

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Michael Johnson, PE - 02 Aug 2006 15:08 GMT
In light of recent discussions regarding the domestic automakers loosing
market share, I found this article interesting:
http://www.breitbart.com/news/2006/08/01/060801215016.mzv0typ6.html

Toyota has passed Ford for the first time in monthly sales volume.  Who
would have thought that this was possible 10-20 years ago?  I wonder how
long it will be before GM is overtaken.
Joe - 03 Aug 2006 00:50 GMT
> In light of recent discussions regarding the domestic automakers loosing
> market share, I found this article interesting:
[quoted text clipped - 3 lines]
> would have thought that this was possible 10-20 years ago?  I wonder how
> long it will be before GM is overtaken.

If both Ford and GM don't get it together soon, our grandchildren will
be saying "What's a Ford?" and "What's a Chevy?".
Michael Johnson, PE - 03 Aug 2006 01:11 GMT
>> In light of recent discussions regarding the domestic automakers
> loosing
[quoted text clipped - 9 lines]
> If both Ford and GM don't get it together soon, our grandchildren will
> be saying "What's a Ford?" and "What's a Chevy?".

I see the day when the foreign auto makers will own Detroit.  Chrysler
was the first of the Big Three to be eaten.  If you really want to shake
your head then read this article:
http://apnews.myway.com/article/20060801/D8J7T22G0.html  I can't believe
Ford, GM and Chrysler's sales numbers fell this hard while Toyota and
Honda increased.  Tells you it isn't the market as much as it is the
product being sold and the marketing effort used to get the buyers to
the showrooms.
Joe - 03 Aug 2006 02:17 GMT
>>> In light of recent discussions regarding the domestic automakers
>> loosing
[quoted text clipped - 18 lines]
> product being sold and the marketing effort used to get the buyers to
> the showrooms.

Bingo.  Give the man a cigar!
NoOption5L@aol.com - 03 Aug 2006 01:46 GMT
> In light of recent discussions regarding the domestic automakers loosing
> market share, I found this article interesting:
> http://www.breitbart.com/news/2006/08/01/060801215016.mzv0typ6.html

> Toyota has passed Ford for the first time in monthly sales volume.  Who
> would have thought that this was possible 10-20 years ago?  I wonder how
> long it will be before GM is overtaken.

Not long.  Though Toyota is now experiencing some growing pains...
recently they've had a rash of quality issues that are bitting them in
the a.s.

For Detroit, the key problem is a whole generation of buyers, who were
raised on imports, are now entering their peak buying years.  These
kids' whole life they've come to know that Detroit means old technology
and poor quality because their parents ranted/complained for years
about the many crappy products Detroit was spewing out in the 70's,
80's and early 90s.  Detroit isn't going to erase 30 years of memories
in a few years or with a few good products.  It's going to take them a
longggg time to dig themselves out of the hole they've dug.  Without
any mergers, I see Detroit being whittled down to primarily just
offering specialty products -- cars like the Mustang, SVT, Vette and
SRT vehicles... performance/enthusiast stuff.  Then it'll be a matter
of keeping these core buyers and slowly rebuilding back up from there.
Is this a bleak picture?  Yep, but I truely believe that's what it's
going to come to.  

Patrick
Michael Johnson, PE - 03 Aug 2006 02:15 GMT
>> In light of recent discussions regarding the domestic automakers loosing
>> market share, I found this article interesting:
[quoted text clipped - 22 lines]
> Is this a bleak picture?  Yep, but I truely believe that's what it's
> going to come to.  

There is one component you left out.  Detroit is now paying the price
for ignoring the economy and mid size car market to push out one
SUV/truck after the other.  If you look at the second link I gave to
Joe's response, Ford's car sales fell just 6.7%.  The truck and SUV
market is tanking.  They have ignored their car lines and now when
buyers are switching back from SUVs and trucks their first reaction is
to buy Japanese.  Ford and GM have no one but themselves to blame.  They
are so damn driven for short term profits they don't realize they are
screwing themselves in the long run.  The Japanese think long term and
that is paying huge dividends for them.  It will take a miracle for Ford
and GM to stop the Toyota juggernaut.

Also, I don't see Ford or GM surviving on specialty vehicles.  The sales
volume on these cars/trucks isn't nearly enough to sustain even a
mediocre sized automaker.  My big prediction is that Ford is going to
see their F series truck sales numbers erode to the Japanese.  They have
figured out what the American truck buyer wants like V-8's,  size etc.
and they are giving it to us in spades.  If Ford looses much of its
truck market share then I don't see how they will survive on their own.

They can turn it around but it will take some thinking that is way
outside the box for Detroit.  I still think they are in denial about
what the Japanese are doing to them.  I see GM just cranking out the
same old boring sh.t year after year.  IMO, Ford has some decent cars
but their marketing effort absolutely sucks.  Every time I see a "Bold
Moves" commercial I feel like I am watching paint dry.  The Mustang
commercials do strike a chord with me but that is where it ends and that
won't sell me a Ford 500.  I do feel like Detroit is at a major cross
roads regarding their future viability as players in the domestic auto
market.
Joe - 03 Aug 2006 02:21 GMT
>>> In light of recent discussions regarding the domestic automakers
>>> loosing market share, I found this article interesting:
[quoted text clipped - 54 lines]
> cross roads regarding their future viability as players in the
> domestic auto market.

All true.  Detroit needs to change its collective core mindset to come
out of this.  Ironically, DC may be the only one of the three that
survives (or survives the longest), as they've already "morphed".

I think the world is poised on the edge of economics like we've never
seen before.
Michael Johnson, PE - 03 Aug 2006 03:08 GMT
>>>> In light of recent discussions regarding the domestic automakers
>>>> loosing market share, I found this article interesting:
[quoted text clipped - 55 lines]
> out of this.  Ironically, DC may be the only one of the three that
> survives (or survives the longest), as they've already "morphed".

DC is really "D" owns "C".  If that merger had not occurred I wouldn't
be surprised if Chrysler was flirting with bankruptcy again. Their car
line was aging fast and it looked like they didn't have the ability to
develop a new one fast.  The Mercedes chassis' and drive trains have
been a big boost for their sales.

> I think the world is poised on the edge of economics like we've never
> seen before.

It is truly a global economy.  The bright side is it should decrease
wars between nations.  After all, why would China destroy its largest
buyer for its products. ;)
Joe - 04 Aug 2006 02:24 GMT
>>>>> In light of recent discussions regarding the domestic automakers
>>>>> loosing market share, I found this article interesting:

http://www.breitbart.com/news/2006/08/01/060801215016.mzv0typ6.html
>>>>> Toyota has passed Ford for the first time in monthly sales volume.
>>>>> Who would have thought that this was possible 10-20 years ago?  I
[quoted text clipped - 58 lines]
> develop a new one fast.  The Mercedes chassis' and drive trains have
> been a big boost for their sales.

Agreed.  But it's deeper than that.  DC is certainly more of a "global"
company with an ever-increasing "global" outlook than GM or Ford.

>> I think the world is poised on the edge of economics like we've never
>> seen before.
>
> It is truly a global economy.  The bright side is it should decrease
> wars between nations.  After all, why would China destroy its largest
> buyer for its products. ;)

Well, right now we're seeing first hand how thick-headed some of these
nations are.  And I'm certainly not discounting the U.S.
NoOption5L@aol.com - 03 Aug 2006 03:46 GMT
> > They can turn it around but it will take some thinking that is way
> > outside the box for Detroit.  I still think they are in denial about
[quoted text clipped - 6 lines]
> > cross roads regarding their future viability as players in the
> > domestic auto market.

> All true.  Detroit needs to change its collective core mindset to come
> out of this.  Ironically, DC may be the only one of the three that
> survives (or survives the longest), as they've already "morphed".

Joe, DC hasn't fully "morphed".  They are also back on the ropes.  The
evidence is despite a return to employee pricing for all, sales have
continued to fall.   Their "300 magic" seems to be wearing off...

Patrick
Joe - 04 Aug 2006 02:22 GMT
NoOption5L@aol.com wrote in news:1154573181.154355.232080
@s13g2000cwa.googlegroups.com:

>> > They can turn it around but it will take some thinking that is way
>> > outside the box for Detroit.  I still think they are in denial about
[quoted text clipped - 16 lines]
>
> Patrick

By "morphed" I mean "teamed up with" a foreign maker.  It's in both
Mercedes Benz' and Chrysler's interests to watch out for each other.

The "300 magic" isn't so much a factor as increased fuel costs along
with outrageous labor and insurance costs.  GM and Ford are suffering
from the same maladies.

The thing that Chrysler has going for it now is that they have MB
looking over their shoulder, whereas GM and Ford don't have such a
strong foreign influence - yet.  Time will tell.
NoOption5L@aol.com - 03 Aug 2006 03:40 GMT
> >> In light of recent discussions regarding the domestic automakers loosing
> >> market share, I found this article interesting:
> >> http://www.breitbart.com/news/2006/08/01/060801215016.mzv0typ6.html

> >> Toyota has passed Ford for the first time in monthly sales volume.  Who
> >> would have thought that this was possible 10-20 years ago?  I wonder how
> >> long it will be before GM is overtaken.

> > Not long.  Though Toyota is now experiencing some growing pains...
> > recently they've had a rash of quality issues that are bitting them in
> > the a.s.

> > For Detroit, the key problem is a whole generation of buyers, who were
> > raised on imports, are now entering their peak buying years.  These
[quoted text clipped - 10 lines]
> > Is this a bleak picture?  Yep, but I truely believe that's what it's
> > going to come to.

> There is one component you left out.  Detroit is now paying the price
> for ignoring the economy and mid size car market to push out one
> SUV/truck after the other.  If you look at the second link I gave to
> Joe's response, Ford's car sales fell just 6.7%.  The truck and SUV
> market is tanking.

And what percentage of their sales is their truck/SUV markets?  What...
50%?  Now erase a percentage of those sales, and add a still eroding
car market and what are you left with?  My answer is not much.  Sure,
they'll continue to sell some trucks/SUV and cars, but I'm telling you
their core, their very heart -- enthusiast products -- are either going
to make or break them.   These products, and the way they design them
and build them, are either going to grow and the enthusiasm behind them
spread to their other product lines or, without mergers, Detroit will
eventually go under.

> They have ignored their car lines and now when
> buyers are switching back from SUVs and trucks their first reaction is
[quoted text clipped - 3 lines]
> that is paying huge dividends for them.  It will take a miracle for Ford
> and GM to stop the Toyota juggernaut.

You say miracle, I say passion.  They will get smaller, much smaller,
but the passion that drives Team Mustang and Corvette is the maker
breaker.  (Cadillac & Hummer have a foundation for success.)  Either
they build comparable teams for each of their product lines or it's
game over.

> Also, I don't see Ford or GM surviving on specialty vehicles.  The sales
> volume on these cars/trucks isn't nearly enough to sustain even a
> mediocre sized automaker.

Corvette and Mustang couldn't do it alone, but with the help of
Cadillac, Hummer, Solstice-type offerings, GTO, Camaro, and Ford with
SVT and hopefully a revitalized Focus, Lincoln and/or Mercury, plus
some other car and trucks slaes I think they could.  I mean there are
other automaker makers out there right now surviving on fewer sales.

Bottomline: GM and Ford are going to, and going to have to, shrink, a
lot.

> My big prediction is that Ford is going to
> see their F series truck sales numbers erode to the Japanese.  They have
> figured out what the American truck buyer wants like V-8's,  size etc.
> and they are giving it to us in spades.  If Ford looses much of its
> truck market share then I don't see how they will survive on their own.

With all the new players jumping into the truck market, it's inevitable
Ford and GM's share will shrink. People like variety and choices, so
some are natually going to sample and drift to other products.  (Think
Mustang sales in the 60s.)

> They can turn it around but it will take some thinking that is way
> outside the box for Detroit.  I still think they are in denial about
> what the Japanese are doing to them.  I see GM just cranking out the
> same old boring sh.t year after year.

I see GM doing much more than Ford.  For truly exciting products, Ford
has been reduced to just the Mustang.  At least GM has the Vette,
Hummers & Cadillacs (and I'd add the GTO).  Plus, GM has some neat
products in the pipline.  I haven't seen or heard about anything neat
that Ford has coming... that is besides new Mustang varieties.  They
seem to think rebadging their Lincolns with alpha characters is the way
to go.

> IMO, Ford has some decent cars but their marketing effort absolutely sucks.  Every time I see a "Bold
> Moves" commercial I feel like I am watching paint dry.  The Mustang
> commercials do strike a chord with me but that is where it ends and that
> won't sell me a Ford 500.  I do feel like Detroit is at a major cross
> roads regarding their future viability as players in the domestic auto
> market.

I agree.  It's time they start moving forward or they'll go down the
tubes.  I just hope they tap their Vette's and Mustang's passion to get
the rest of thier products spinning in the right diection...

Patrick
Michael Johnson, PE - 03 Aug 2006 20:31 GMT
>>>> In light of recent discussions regarding the domestic automakers loosing
>>>> market share, I found this article interesting:
[quoted text clipped - 38 lines]
> spread to their other product lines or, without mergers, Detroit will
> eventually go under.

The point I was making is Ford has neglected their car side for too long
and now when they need those sales to keep volume up they aren't there.
 Toyota, Honda, Nissan etc. never let their car line languish and
become stale.  If you took all of Ford's enthusiast cars/trucks I bet
they wouldn't add up to 300,000 units.  Take out the Mustang and there
is hardly anything at all.  Ford has abandoned their bread and butter
models like the Taurus, Escort, etc. and, IMO, with it they have killed
their identity with millions of potential buyers.  Now they are trying
to sell models that no one is familiar with and it is killing them.  If
they would bring out a Taurus they would probably sell 100,000+ of them
just because of the name alone.

>> They have ignored their car lines and now when
>> buyers are switching back from SUVs and trucks their first reaction is
[quoted text clipped - 9 lines]
> they build comparable teams for each of their product lines or it's
> game over.

They can only get so small before they cease to be a viable automaker.
I just don't see the majority of the public as closet enthusiast car
buyers.  You and I are not the norm.  We are the rare exception. ;) The
bulk of the public are meat and potatoes car buyers.  For proof just
look at Toyota's car line.  It is bland as milk toast but that doesn't
stop their mark to the top.

>> Also, I don't see Ford or GM surviving on specialty vehicles.  The sales
>> volume on these cars/trucks isn't nearly enough to sustain even a
[quoted text clipped - 5 lines]
> some other car and trucks slaes I think they could.  I mean there are
> other automaker makers out there right now surviving on fewer sales.

True but they were never as large as GM, Ford or Chrysler.  I don't
think they will shrink.  They will get gobbled up by the winners.

> Bottomline: GM and Ford are going to, and going to have to, shrink, a
> lot.

An elephant can only loose so much weight before it dies and/or gets
eaten. :)

>> My big prediction is that Ford is going to
>> see their F series truck sales numbers erode to the Japanese.  They have
[quoted text clipped - 6 lines]
> some are natually going to sample and drift to other products.  (Think
> Mustang sales in the 60s.)

Those new players really aren't that new.  The Japanese have been
pecking away at the full size truck market for a long time.  They just
recently have found the formula to really take a big bite out of
Detroit.  Full size trucks was the last segment that Detroit owned
outright.  In 5-10 years I bet the Japanese will own the personal truck
segment like they have done with the compact truck market.  I think
construction related sales will remain a mostly domestic market.

>> They can turn it around but it will take some thinking that is way
>> outside the box for Detroit.  I still think they are in denial about
[quoted text clipped - 8 lines]
> seem to think rebadging their Lincolns with alpha characters is the way
> to go.

I don't see either one getting anywhere with their car lines.
Personally, I think Detroit's main problem is more marketing related
than vehicle quality/content.  The foreign auto makers are kicking their
a.ses and taking names.

>> IMO, Ford has some decent cars but their marketing effort absolutely sucks.  Every time I see a "Bold
>> Moves" commercial I feel like I am watching paint dry.  The Mustang
[quoted text clipped - 6 lines]
> tubes.  I just hope they tap their Vette's and Mustang's passion to get
> the rest of thier products spinning in the right diection...

They are definitely going to have to take some risks with future car
models.  Ford needs a "Taurus" type vehicle right now like they gave us
in the late 80s.  The Taurus was an all or nothing move by Ford that
pulled them from the abyss.
Michael price - 03 Aug 2006 02:16 GMT
i have been with the company 13 years now. and there is a old guys that
works out in the shop with me he`s been there around 25 years and he has
always had a ford truck. well this past spring he came to work in a
brand new full size toyota truck i was shocked!!! i asked him why the
change now. he said as of right now that new truck has impressed him
more than any other truck he had. when a die hard ford man buys a yoto
makes you think something is very wrong!! he allways trades trucks every
4 years or so. he liked it better than the new f-150. are hard times
coming i`m afraid??? :(   mp
Michael Johnson, PE - 03 Aug 2006 02:30 GMT
> i have been with the company 13 years now. and there is a old guys that
> works out in the shop with me he`s been there around 25 years and he has
[quoted text clipped - 5 lines]
> 4 years or so. he liked it better than the new f-150. are hard times
> coming i`m afraid??? :(   mp

As I said in the other post, the Japanese have figured out the full size
truck market and they are making an all out assault on it.  The trucks
look good, have big V-8s, built tough, high built quality and provide a
great driving experience.  Will they figure out the muscle car market
next? ;)
Joe - 04 Aug 2006 02:27 GMT
>> i have been with the company 13 years now. and there is a old guys that
>> works out in the shop with me he`s been there around 25 years and he has
[quoted text clipped - 10 lines]
> look good, have big V-8s, built tough, high built quality and provide a
> great driving experience.

The truck market is taking a huge nose dive.  This is certainly not the
time to get into trucks.  Foreign makers should heed lessons already
learned and focus on fuel-efficient vehicles.  If not, they'll be right
behind American makers with huge losses.

> Will they figure out the muscle car market
> next? ;)

They don't need to.  They have tuner cars, which are more popular.  ;)
Michael Johnson, PE - 04 Aug 2006 03:32 GMT
>>> i have been with the company 13 years now. and there is a old guys
> that
[quoted text clipped - 20 lines]
> learned and focus on fuel-efficient vehicles.  If not, they'll be right
> behind American makers with huge losses.

This is where the Japanese are their most deadly to Detroit, IMO.  There
may not be a truck market right now but they will continue pounding away
at Ford and Chevy anyway.  They have a solid car line that is doing well
that lets them push their truck line.  They aren't relying only on
SUV/truck sales like GM and Ford have for the Last 15 years.  This is a
long term war in their eyes.  Look at the tenacity they had in the car
market.  When they first came over here forty years ago NO ONE wanted
their cars.  Hell, fifteen years earlier we had just kicked their a.s in
WWII.  To even come here at that time took a set of gonads so big they
probably drug on the ground when they walked.  They kept hammering away
and now they are closing in on being #1.  They were willing to fight
Detroit for decades, if necessary.  If GM and Ford had a fraction of the
foresight the Japanese have they probably wouldn't be in the mess they
find themselves.

>> Will they figure out the muscle car market
>> next? ;)
>
> They don't need to.  They have tuner cars, which are more popular.  ;)

Another great marketing coupe by the Japanese.  What does the big three
do... they throw out a decent car like the SVT Focus.  Then they kill it
off before it ever had a chance of gaining a foothold in its intended
market segment.  Ford did this with the SVT Contour, Cougar, Probe and
the Taurus SHO among others.  All good cars that they just walked away
from.  Sometimes I can't believe how dumb some of their decisions have been.
Joe - 04 Aug 2006 04:11 GMT
>>>> i have been with the company 13 years now. and there is a old guys
>> that
[quoted text clipped - 38 lines]
> GM and Ford had a fraction of the foresight the Japanese have they
> probably wouldn't be in the mess they find themselves.

Can't agree more with your last statement.  However, I think the Japanese
in general missed the boat by a few years with their truck offerings.  Had
they come out a few years ago with the good stuff they've got now coupled
with a good marketing push, who knows what inroads they'd have made into
the American truck market?

At this point, I think it's a moot battle.  The light-duty truck market
that the Japanese are getting into now is taking a big hit in general.  
The Japanese still have yet to seriously compete in the American heavy-
duty diesel market, which is smaller but more stable IMO.

>>> Will they figure out the muscle car market
>>> next? ;)
[quoted text clipped - 9 lines]
> walked away from.  Sometimes I can't believe how dumb some of their
> decisions have been.

Exactly.  Take a look at some of the most successful cars out there -
Civic, Camry, Altima, etc.  What do American makers have?  The Five
Hundred or the Zephyr?  The Cobalt?  The Caliber?  And now look at the
most recent foreign entries - the Fit, the Yaris, the Versa.  Light years
ahead of the Americans.  Cars like these, coupled with American makers'
labor union/insurance balls and chains are the demise of the American auto
industry.
Michael Johnson, PE - 04 Aug 2006 15:54 GMT
>>>>> i have been with the company 13 years now. and there is a old guys
>>> that
[quoted text clipped - 42 lines]
> with a good marketing push, who knows what inroads they'd have made into
> the American truck market?

This is the way the Japanese work though.  They keep trying until the
product is what the public wants.  I think they will be in a very good
position when the truck market improves.  Plus it gives them more time
to refine their product.

> At this point, I think it's a moot battle.  The light-duty truck market
> that the Japanese are getting into now is taking a big hit in general.  
> The Japanese still have yet to seriously compete in the American heavy-
> duty diesel market, which is smaller but more stable IMO.

I agree.  I think the commercial/construction truck market is still
Detroit's.

>>>> Will they figure out the muscle car market
>>>> next? ;)
[quoted text clipped - 15 lines]
> labor union/insurance balls and chains are the demise of the American auto
> industry.

The UAW and domestic car companies are whistling past the grave yard.
As for Ford I think they have no effective marketing strategy and this
is their biggest problem.  The cars they sell are not inherently bad (or
ugly) and, IMO, are fairly close to the Japanese makers in quality.
There is very little model recognition with Ford.  They have the
Mustang, Explorer, F150 and nothing else comes to my mind.  The rest of
there model line has no history with the public.  The Fusion is a great
car but I suspect it will be killed off in a couple of years for
something else.
mustangjoe - 04 Aug 2006 20:53 GMT
Too bad for Ford.  Unfortunatly they really have no competitive, mass
appeal cars.  Out side the Mustang, their product mix is not really
competitive.  Even the Fusion/Milan fall a bit short.  I own a V6
Milan.  Nice car no doubt, but it falls a little short in the hp/mpg
category against a Maxima or Accord or Camary.  Until last year when
they introduced the 'stang, Ford had not put out an all new car (Focus)
for 8 years.  That's an eternity in car years!

I suspect that of the reaminng 2 US manufacturers, GM will survive
because of it's size,  Ford may not...

> In light of recent discussions regarding the domestic automakers loosing
> market share, I found this article interesting:
[quoted text clipped - 3 lines]
> would have thought that this was possible 10-20 years ago?  I wonder how
> long it will be before GM is overtaken.
Michael Johnson, PE - 04 Aug 2006 23:57 GMT
> Too bad for Ford.  Unfortunatly they really have no competitive, mass
> appeal cars.  Out side the Mustang, their product mix is not really
[quoted text clipped - 3 lines]
> they introduced the 'stang, Ford had not put out an all new car (Focus)
> for 8 years.  That's an eternity in car years!

They were too busy with the Expedition, Excusion, Explorer and other
trucks.  Ignoring their car line for the last several years is going to
cost Ford dearly, IMO.

> I suspect that of the reaminng 2 US manufacturers, GM will survive
> because of it's size,  Ford may not...

I think both will survive.  They need to start thinking long term like
the Japanese.  They (Asian auto makers) will put out a new version (and
in many cases an entirely new chassis/drive train etc.) of every vehicle
in their car line every four years whether it is needed or not.  This
strategy is fantastic for promoting repeat business with their customers.

>> In light of recent discussions regarding the domestic automakers loosing
>> market share, I found this article interesting:
[quoted text clipped - 3 lines]
>> would have thought that this was possible 10-20 years ago?  I wonder how
>> long it will be before GM is overtaken.
 
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