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Author Topic: Ford to Facelift 500-Too Conservation?  (Read 1469 times)
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S60
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« on: March 31, 2005, 08:00:23 pm »

NEW YORK (CNN/Money) - Ford Motor Co. plans to terminate the cheapest models of its Jaguar sports car and is in the process of giving its newly released Five Hundred sedan a facelift, according to published reports.  

The moves are the latest attempts by the nation's No. 2 auto manufacturer to reverse its financial problems. Two weeks ago the company reiterated its earlier guidance that first-quarter earnings would come in well below year-earlier results, although it would make a profit. That guidance update put it below current analysts' forecasts, which were lowered following the announcement.  

USA Today reported Tuesday that Ford will drop the $31,000 2.5 X-Types at its luxury-performance brand Jaguar, and it is also reducing incentives on 3.0 X-Types.  

The newspaper said the moves leave more money to promote higher-price cars at Jaguar. It plans a new $115,000, high-power XJ sedan as it attempts to again raise its image.  

Mike O'Driscoll, head of Jaguar's U.S. operations, told the newspaper he wouldn't call the moves a phaseout of the X-type, but says that Jaguar is "looking at our options."  

The newspaper said Jaguar is expected to report a loss this year after a $700 million shortfall in 2004. It announced plans last year to close in June a British factory that makes the cars, laying off 1,150 workers.  

Meanwhile, the Wall Street Journal reported that Ford is already looking at design changes for the Five Hundred sedan, which first hit showrooms in October. The newspaper said changes would be meant to spice up its styling and interior, which the newspaper said have been criticized as too bland.  

Auto manufacturers normally wait four or five years to redesign an automobile after its introduction. The Journal reports the newly designed Five Hundred would arrive in dealer showrooms in the middle of 2007, less than three years after the debut.  

But the newspaper said Ford is making the more immediate moves as it faces disappointing sales. The newspaper said its average monthly volume during the last four months would give the company an annual sales pace of about 83,000 vehicles for the Five Hundred, or about 17 percent below its 100,000 sales target.  

The newspaper quoted one executive, whose name was not given, as saying the redesign is in response to "critical comments from the media and consumers that the Five Hundred is staid and too conservative."  

http://money.cnn.com/2005/03/29/Autos/ford_woes/
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« Reply #1 on: March 31, 2005, 09:58:41 pm »

Well, I'd say 17% below target is not too bad; but, that car could be a bit more stylish and exciting without hurting my feelings.
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« Reply #2 on: March 31, 2005, 10:15:06 pm »

Good job ford for correcting your wrong.  This is no time for blandness in the market.
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« Reply #3 on: March 31, 2005, 11:24:51 pm »

I think they should hold on. Its bland, but not offensive. Sort of like a Camry.
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« Reply #4 on: April 01, 2005, 05:55:25 am »

Ford should utilize some of the styling expertise found at Mazda or Volvo to improve their conservative styling approach. Styling is only one factor….Toyota is a huge success selling bland automobiles…..beauty is only skin deep…..when the honeymoon is over it is all about functionality.
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« Reply #5 on: April 01, 2005, 08:24:02 am »

Ford needs that 3.5 litre engine. That will do more to boost sales than a facelift.
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« Reply #6 on: April 01, 2005, 08:41:49 am »

Yep….a +250 hp AWD CVT family sedan would be very marketable. Being a FORD man in the past I would look at it.
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« Reply #7 on: April 01, 2005, 11:05:34 am »

Yah, what's in it now? some 207hp V6? they thought was good enough?  common

apparently that engine is having troubles carrying the weight in the freestyle
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« Reply #8 on: April 01, 2005, 11:24:41 am »

C'mon Snowie everyone likes a lil' pizz'azz with their FUNCTIONALITY...somehow can't see you inna Camry..though you have a Highlander Box !!??? Mmmmmaybe old timer....!!!!
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« Reply #9 on: April 01, 2005, 11:27:46 am »

Interesting interview CarConnection did with Peter Horbury. Peter Horbury is responsible for the new look of Volvo cars.

The affable, soft-spoken Horbury is a native of the United Kingdom, and a graduate of the Royal College of Art. At 53, he is credited with penning more than 45 cars, trucks, buses, and motorcycles over the course of a three-decade career. But it's the eleven years Horbury spent as design director of Volvo Car Corp. that earned him his current reputation. Long known for its boxy designs, Horbury and his team rolled out an assortment of sedans, coupes, and wagons that maintained what designers like to call "brand DNA," yet proved Volvos could be stylish, as well as safe.

Ford Motor Co. design director J Mays explained Horbury's move to the U.S. by noting that North America is "where we need to invest our top design talent. We are more heavily investing in refining the design DNA for this market's products." For a sense of exactly what that means, TheCarConnection.com spent a day driving with Horbury through New England in the new Mercury Mariner.

 

TCC: Ford has taken a lot of hits for the conservative design of the Five Hundred, compared to competitors like Chrysler, with its stylish 300. Is that fair?

HORBURY: If you walk into the room playing a trumpet, everyone will pay attention, but after a while, they all get sick of the noise.

 

TCC: So, are you saying you're comfortable with Ford's conservative designs?

HORBURY: There's a fine line in a business like ours. Every project has to have a good business case and that comes from making a vehicle last six to eight years. Anything that's a fashion statement has, by definition, a short shelf life. The fine line is between something that is outstandingly new and intense and something that can keep going long enough to make a business case. The Swedish rules of design call for keeping it clean and simple, like good Swedish furniture. If you keep it simple, it doesn't get dated. It's balancing all that which I feel we have to do.

 

TCC: So you don't want to design cutting edge cars?

HORBURY: I hope I'm never accused of designing a boring car, but there's a lot riding on it. It's become more and more difficult as brand loyalty becomes a thing of the past. People want something new. The critical thing is to find a way to keep people's interest (in your products) longer than they want to have.

 

TCC: So, then, risking the fact that your answer could get you fired, would you have done the Five Hundred differently?

HORBURY: I think… (a very long pause follows) …every chief designer would approach a problem in a different way. I don't think any two would do it the same way. It's obvious I wouldn't design it like that, but I admire what's come out. Would have done it differently? No doubt, but I still like the car.

 

TCC: Part of J Mays' focus has been on interior refinement, something that seems to be increasingly important in the industry these days. Do you agree?

HORBURY: What I'm trying to do is (focus on) the perceived value. It's important because we have the right way to make a judgment where $5 in savings may represent $200 less in perceived value in the customer's eye. Putting in that extra $5 could prove to be a pretty good investment.

 

TCC: Perhaps, but in an industry that would kill to save 30 cents per vehicle, isn't that a difficult thing to sell?

HORBURY: It's one of the most difficult things to argue because it's clearly a subjective argument. But when I hear people say, "The customer won't notice," well, the customer notices everything. And the fact is that good design really doesn't cost more than mediocre design. That's why every single detail needs to be addressed.

 

TCC: Interiors are one of those areas that long seem to have neglected.

HORBURY: J has blazed the path for interiors. Just look at the F-150 (full-size pickup). Who would have expected an interior that refined in a truck just five years ago?

 

TCC: We're seeing the expansion of what used to define luxury, especially in interiors, with the use of new materials besides wood and leather.

HORBURY: What is luxury? It's a word that's changing fast. Traditional definitions of luxury changed with my generation. We created our own sense of style. And there's the new generation of luxury buyers. They have a lot of buying power, and want luxury, but not the same sort of luxury as the generation before. But we don't want to write off the last generation, so what we have to do is often appeal to both. That means leather and wood for some, and brushed aluminum for others.

 

TCC: You mention the next generation. Do you intend to focus on younger buyers?

HORBURY: There's a never-ending quest among car companies to win over younger buyers. But let's face it: who has the money?

 

TCC: What's the biggest difference between working at Volvo and at Ford?

HORBURY: Dealing with the Swedes taught me how to encourage people to be creative without being dictatorial. In Sweden, it was about discussing, about encouraging our designers to come back with the solution themselves. (In the U.S.) it's a culture change. That hasn't been the way to do it. In the States, people expect to either be left alone or told what to do. I believe we'll come to some point in the middle.

 

TCC: One of the things you discover visiting Volvo is the emphasis on computer technology used for design and engineering. How much of a difference did it make?

HORBURY: At Volvo, we changed the whole way of working from handcraft-based to digital. With the S40, everything was done on-screen. We walked into the digital display room one day to look at several different concepts and we decided we wanted to take the front end off one car and (mate it to) the back end of another. We could do that in just 10 minutes. Imagine if we'd done that with clay models.  We'd not have been done until three weeks later.

 

TCC: How far is the technology going?

HORBURY: I had a hologram of an instrument panel in my office two weeks ago, and I had to keep reminding myself not to try to grab the steering wheel.
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« Reply #10 on: April 01, 2005, 11:29:40 am »

Not for long…….I get at least one call a day regarding my Highlander from Subaru or Volvo dealers. The V70 is still the best deal….Subaru is still in orbit with pricing. Time is on my side….soon I will get the price that will trigger the deal.
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« Reply #11 on: April 01, 2005, 11:36:40 am »

They have a good man there...hope they pay him well and the bean counters listen to the "The customers sees everything...and Trying to save 30cents or $5 on a car when the customer sees it as a minus$200 cheapening(parphrasing here)"..is sooooo true..todays C/D review shows some nice touches of his design...the console and Tru_tech upholstery look great and the car got a good driving review too...Pricey though...$1,500 transport fee and $1,400 stereo upgrade grrrrrr!!!
soon you are at $35,000 - and up...dangerous territory.....
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« Reply #12 on: April 01, 2005, 11:42:28 am »

Snowman, when's the lease up on the HL?  Are you hoping that the new deal will simply 'buy-out' the HL or are you expecting to have to suck up some negative equity in this deal?

If we can dump the Civic sooner rather than later, I'd be all over it.  :-)
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« Reply #13 on: April 01, 2005, 12:29:10 pm »

Jeff…..I stated upfront that I want the dealer to “buy” the HL from Toyota and we will work from there. The buyout amount is currently at $22k and I have been told by dealers various amount ranging from $17k-$21k as to the amount they are willing to “pay” for it. There is 11 months left on the lease.

This is a big range as far as I’m concerned and I have seen identical HL’s for sale by dealers in the $23-$25k range. I understand a dealer has to put some money into it to prep it for sale…..but fack…I’m not trying to dump a 2002 Durango. I believe the dealers want to have potential buyer before they will deal with me…..this introduces another person along with his margin. I am prepared to “eat” $1000-$1500 but that is it.
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« Reply #14 on: April 01, 2005, 12:40:08 pm »

Ford Sales:
http://biz.yahoo.com/prnews/050401/def014.html?.v=4
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