Ford is kicking ass in the UK. Just-auto [sub] reports that private sales of the recently redesigned Ford Mondeo are up by over 20 percent year-on-year. Even better, high-profit top variants account for more than half of these retail orders. "Since the latest Mondeo went on sale in June, more than 16,500 have been registered in the UK and almost 52% of customers have specified top trim levels such as Titanium," Just-auto reports. "This compares with a share of under 35% for equivalent high series Mondeos two years ago." But wait, there's more! The new Focus is also a hit with private buyers. Non-fleet sales are up more than seven percent compared to last year. And more! Galaxy minivan and S-Max' retail registrations doubled in the same time frame. Clearly, someone within the Ford empire knows what they're doing…
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And why arn’t some or all of these being sold in the U.S. as Mercury’s?
I agree. Bring them here!
ever since i saw the mondeo in the last James Bond movie, I thought it should be brought stateside pronto. I remember a few months ago that someone asked Alan Mullally why it wasn’t coming here and he responded something along the lines of “unfavorable exchange rates, different crash and emission standards, etc.” All of these are surmountable; Bring that car here now!!
It might be better news if any of the automobiles in question had been produced in the USA to take advantage of the weak dollar. While it is encouraging to a see a Ford overseas affiliate doing well, it doesn’t help the core problem in North America – overcapacity.
It would be wonderful to see UAW members producing Mondeos for export to Europe, allowing Ford to undercut its European rivals while simultaneous increasing profit margins in Europe.
At this point, with the US dollar at a record low, European autoworkers are now the ones who are “overpaid!”
@Steve_S, thalter, tomaxhawk
I agree with all of your comments, but I would rather see the Mondeo, S-Max and Galaxy production lines moved to the United States than see overpriced European models imported and fail due to unfavorable exchange rates.
Europe labor can’t compete with even the UAW in terms quality, reliability or productivity.
I read the article and noticed there was one crumb of information which everyone carefully omitted.
You can buy these cars with loads (and I mean loads!) of discounts. Take the Titanium model, which the article mentions.
The RRP for a Ford Mondeo 2.3 Titanium 5 door Auto is £20145. But you can pick up one (with very little research) for £16122. That over £4K of discounts!
No wonder they’re selling well…
I just don’t get Americans’ fascination with Euro Fords. You can have them!
review to be written shortly, by yours truly
The reason those in Europe say “you can have them” is because they’ve never driven what we have here. Pity me, I have.
That Mondeo is a gorgeous looking car, well done Ford UK!
The consensus is that the latest Mondeo is a truly serious competitor for BMW.
This time, they got it right.
What’s crazy is that a carmaker that is losing more than $1B every quarter has the cash to invest in 4.5 midsize platforms globally. Euro Mondeo, Mazda6, Fusion (half based on the Fusion), Volvo S60 and Falcon.
Sometimes business strategy is complex and sophisticated, but most of the time, stunningly obvious.
Ford’s not going to bring this model to the states because if they do, it’s just gonna become another old Ford. Once in the US it will degrade like Ford’s other vehicles. Another reason why it’s doing ok in the UK is that overthere there aren’t as much choices as in the US.
I’ve just remembered something. ‘merkins are also banging on about the Focus ST and how they should bring that to the United States.
Well, they have already! It’s called the Volvo C30. It has the same chassis and engine as a Focus ST.
So, go drive one! :O)
Europe labor can’t compete with even the UAW in terms quality, reliability or productivity.
Huh? I guess that’s why the American automakers are doing so well…
While European car manufacturers have never reached the quality of Japanese vehicles, they are head and shoulder above their American counterparts when it comes to manufacturing efficiency, and that includes labor quality.
Ford has some nice vehicles in Australia too that I think would do well in the US.
Beats the hell out of me why won’t at least try selling the Ford XR6 and XR8 Utes in the US.
Steve_S: And why arn’t some or all of these being sold in the U.S. as Mercury’s?
I know it’ll never happen, so it still breaks my heart whenever we bring it up.
Mercury Rising?
Good, they’re getting volume. But given KatiePuckrik’s discounting info, do we have any idea about their per-vehile profit margin?
@ tomaxhawk:
November 8th, 2007 at 5:53 pm
ever since i saw the mondeo in the last James Bond movie, I thought it should be brought stateside pronto. I remember a few months ago that someone asked Alan Mullally why it wasn’t coming here and he responded something along the lines of “unfavorable exchange rates, different crash and emission standards, etc.”
Be reasonable now! You mean build a car people want and sell it at a profit? What a novel concept!
Well, most of Mullaly’s reasons why not makes one wonder how the European car makers get any cars sold in the US … ? I’d hoped for a better answer. :-)
“And why arn’t some or all of these being sold in the U.S. as Mercury’s?”
The real question is why aren’t they selling them as Fords?
“I just don’t get Americans’ fascination with Euro Fords. You can have them!”
No we can’t. Ford thinks we are not good enough for them.
If you read Ford’s earnings statement, they made a profit in Europe in the 3rd quarter so they must be making something on Mondeos as there can’t be much available on the smaller cars.
daveyh,
Ford may have made a profit in Europe, but that doesn’t address how much they made on sales in the UK. They might have made the majority of profit in other countries (or possibly through PAG).
Ford may have made a profit in Europe, but that doesn’t address how much they made on sales in the UK. They might have made the majority of profit in other countries (or possibly through PAG). KatiePuckrik, Ford of Europe made excellent profits (as they have done now for the last consecutive 6 quarters) based off excellent product, outstanding capacity utilisation rates and cost reductions that have reaped huge rewards. They should be praised by all for their hard work, but instead you wish to criticise the company, products and the plan. For info by the way, PAG made a small loss ($97 million) so you can’t even point to them to support your erroneous theory. Face facts – Ford, in Europe at least, is a success and we should be grateful for small mercies!
Mr Jamie1,
With respect, What are you talking about? You say that Ford Europe made excellent profits. Great! Well done, to Ford Europe! But you (conviently) missed my point which was “how much of those profits were generated in the UK considering the heavy discounts you can get?”.
Remember, the article only talks about sales figures in the UK, not europe. Just like it’s unfair to say Ford is floundering in North America, when it is generating record profits in other markets, it is unfair to say the Ford Europe is making loads of profits, if none or little of the profits are coming from the UK.
As for PAG, I was just proffering a possiblity, not a fact.
AKM: While European car manufacturers have never reached the quality of Japanese vehicles, they are head and shoulder above their American counterparts when it comes to manufacturing efficiency, and that includes labor quality.
Do you have figures to back up that statement? Just curious, because I have always heard the opposite.
Note that here in the U.S., European manufacturers have mostly moved up the price scale because they don’t compete too well in the “mass” market. The only real exception is VW, and it imports a fair number of models from Mexico, and the prices of VWs tend to be higher than domestic and Japanese competitors. And VW still isn’t doing too well in the U.S.
But you (conviently) missed my point which was “how much of those profits were generated in the UK considering the heavy discounts you can get?”.
Discounts are the nature of the game, Katie. Come on now, you know the drill for entry-level to moderately priced vehicles. Value is king: many buyers demand a good deal (or the perception thereof) in order to sign on the dotted line.
And if Ford Europe makes consistent profits with discounts, they play the game right and should be complimented for this.
Am I missing something?
Mr Mehta,
If Ford UK are generating healthy profits and can sell these cars at discounts, good on them. Well done!
But everytime someone mentions Ford in Europe’s profits they always say “Ford EUROPE are making healthy profits”. Well, that as may be, but that is ALL of Europe, not just the UK. For all I know, Ford could be selling all their cars at RRP in every other country, bar the UK. Which is where they are generating profits, but in the UK, they are making losses?
To put it more succinctly, what’s the profit breakdown, country by country?
That over £4K of discounts!
Ah yes, the tried and true approach.
KatiePuckrik: But everytime someone mentions Ford in Europe’s profits they always say “Ford EUROPE are making healthy profits”. Well, that as may be, but that is ALL of Europe, not just the UK.
Katie, it is my understanding that Ford long ago merged its British and German subsidiaries into one unit – Ford of Europe.
The key question isn’t the profit breakdown by country. It is profit breakdown by subsidiary.
When Ford of Europe reports results, it is for all of Europe – both the continent and Great Britain. If Ford is selling cars at a loss in, say, Germany, but at a profit in other areas, and said profits are enough to enable Ford of Europe to write its ledgers in black ink, that is good enough.
@casper00
Another reason why it’s doing ok in the UK is that overthere there aren’t as much choices as in the US.
Right, we just don’t have any choices in mid-size sedans in Europe. We just have the
Ford Mondeo
Volkswagen Passat
Audi A4
BMW 3-series
Mercedes C-Class
Skoda Octavia
Saab 9-3
Volvo S60
Peugeot 407
Citroen C5
Renault Laguna
Fiat Croma
Lancia Lybra
Alfa Romeo 159
Jaguar X-Type
Cadillac BLS
Chrysler Sebring
Dodge Avenger
Chevrolet Epica
Hyundai Sonata
Kia Magentis
Toyota Avensis
Mazda 6
Nissan Primera
Lexus IS
With this apparent lack of choice, it’s obvious we just have to buy Mondeos.
Geeber,
Thank you for clarifying. It’s a bad way of doing business, but that’s Ford’s decision!
Discounts are the nature of the game, Katie. Come on now, you know the drill for entry-level to moderately priced vehicles. Value is king: many buyers demand a good deal (or the perception thereof) in order to sign on the dotted line.
That’s true in the United States and Canada, not necessarily the case in Europe. Americans have a Costco approach to buying retail products (buy it cheap and big); Europeans, not so much. Small cars in Europe don’t have the econobox stigma that they carry in the US, and retail prices for them in Europe are far higher, even excluding VAT. There is also substantial demand for mid-sized sedans in Europe generated by the corporate fleet market, as company cars are a fairly common perk for middle managers in European companies, unlike US companies that provide company vehicles to relatively few people.
Another reason why it’s doing ok in the UK is that overthere there aren’t as much choices as in the US.
Mr. Reinhardt beat me to it, but if anything, Western Europeans have more choices than do Americans in this class of vehicle.
Katie, you’re welcome.
Boy, I would love it if America had that many real choices in the family sedan market.
Hang on a minute, In America, you’ve got,
Volkswagen Passat,
Honda Accord,
Hyundai Sonata,
Toyota Camry,
Toyota Prius (yes, it falls into this category),
Nissan Altima,
Mercedes-Benz C Class,
Ford Taurus,
Jaguar X-Type (Superb car!),
Volvo S40 AND S60,
Mazda 6 (Closest match to a Euro Focus)
Lexus IS,
Chevrolet Malibu (if you can find one),
Saturn Aura,
Chrysler Sebring (Sorry! Killing myself laughing!)
SAAB 9-3,
Buick LaCrosse,
Mitsubishi Lancer and Galant,
BMW 3 series,
Audi A4,
Lincoln MXZ,
Mecury Milan, Sable AND Grand Marquis.
You’ve got loads to choose from! In fact, I wouldn’t mind a drive in the Cevrolet Malibu. It looks rather nice……
Incidentally, I was looking at the Mitsubishi website and there was a sports car called the “Mitsubishi Eclipse” and the tag line was:
“you’ve practically lost your licence just looking at it!” Made me chuckle!
Just think – Ford Motor Company can go bankrupt because of its NA operations and be reborn as a European company that exists along the lines of Volkswagen in the US!!!
It’s a bad way of doing business, but that’s Ford’s decision!
Ms Puckrik, thanks for the debate. We’ll see the long term implications of their discounting. Relative to the mothership, they are doing quite fine indeed.
FWIW, one way that Toyota gained market share so rapidly in the States is with the same gimmicky advertising, similarly mouth-watering incentives, and high pressure sales tactics of its American counterparts. That’s the name of the game, I can’t find a way around it.
More to the point: if the converse was true, Saturn would rule the market. :)