The Detroit News' Scott Burgess describes Ford's 2009 model lineup as a "stop-gap." That means Ford's just treading water and hoping to hang on until that most magical of all years, 2010. That's when they'll finally introduce their turbocharged EcoBoost engine; we'll see a new Focus; the Escapariner gets a six-speed automatic with a new four-cylinder engine; a redesigned FusilanKZ goes on sale (complete with a hybrid model); and they introduce a redesigned Mustang. We can also expect the new Fiesta and restyled Taurus. "Fortunately, the 2010 lineup starts early next year and that has all of the makings of an All-Star Team." All they have to do is limp along for one more year and hope they can keep their head above water until then. But with all the new stuff in the pipeline, they may have problems selling the lame duck '09s.
Find Reviews by Make:
Read all comments
Do they have enough cash to last through ’09, at their current burn rate? Anyone got figures?
It seems like Ford would be the only US auto manufacturer worthy of federal loan guarantees, since they are the only ones in a position to actually pay those off.
But yeah, 2010 is gonna be a fun year. I wonder if all the anticipation is gonna put yet another dent in the current auto market, though. This is probably why Toyota/Honda/Nissan keep their upcoming releases under the wraps – secrecy gives smoother sales, thus preventing constant production over/undercapacity.
Ford might have some reasoning, though – they’ll sacrafice some of their sales in order to make sure that some of us don’t buy ANYONE’s product until 2010, which is when they hope to grab a chunk of the market. Might be a good strategy when your current lineup sucks.
Ford might have some reasoning, though – they’ll sacrafice some of their sales in order to make sure that some of us don’t buy ANYONE’s product until 2010, which is when they hope to grab a chunk of the market. Might be a good strategy when your current lineup sucks.
So the Osborne effect cuts both ways for Ford, eh?
I believe Ford had 25 billion or so as of the last quarter bomb. The actual operational losses were 700 million; the rest may or may not have represented cash burning losses; I’m not an accountant.
So Ford has more money and is losing way less money than GM. Also probably has lower overhead, so they can have less in the bank and maintain cash flow.
So I would say they can make it to 2010 in relative comfort (for a domestic).
I think Ford is selling the 2010 models this early only to try and stem the calls for Alan’s head as Ford’s cash position deteriorates in 2009. This way everyone knows what’s going on and investors/debtors feel more comfortable with the situation.
Customers? Well, let’s hope they return in force in 2010…
I think they will make it and I think they will do pretty well in a few years. They need to do something with Mercury though although I understand that Ford and then Lincoln take priority.
If Alan gets fired before Rick, I will be pissed off.
It seems we are always “waiting” with Ford. And their fanboys are all the same. They always counter an argument with, “Oh yeah…well…you just wait until year xxxx…then we’ll show you.”
good point!
“please buy 3 million or so of these crappy vehicles that we never cared about when we were printing money with SUVs and even WE admit are terrible which is why we are killing ourselves to bring all new, honest-to-god-it’ll-be-good-THIS-time product here in a year or so…”
Wow, that’s a tough sales pitch.
And, oh yeah..”by the way you’re gonna have to BUY this junk, not lease it,’cause this crap-that-we-really-really-think-you-all-should-buy-3-million-of is so toxic we don’t want it back polluting our car lots in 3 years…”
So, you’re definitely mixing a couple things up here as well as confusing calendar year with model year:
First, the 2009 Escape has a new 4-cylinder and six-speed. I was not aware of another new four-cylinder and six-speed coming for MY 2010. The Escape will likely have some changes for MY2010, though, just not much in the ICE drivetrain since Ford just updated that.
Ford has the following MY 2010 Job1s scheduled:
Fusion/Milan (and hybrids) – December 2008
Mustang – February 2009
Taurus, MKS – April 2009 – with V6 Ecoboost
There are also other updated models for MY2010 debuting in CY2009, but it is unclear when they are launching. Farley indicated Ford has a new or significantly updated model line debuting about every 2 months starting at the end of this year
Then, CY2010 has the Fiesta (which might be MY2010 if Ford can successfully pull its timeline up) and the Focus (definitely a MY2011). The 4-cylinder ecoboost engines, which are the ones that matter, will be CY2010 for MY2011. Several new truck engines will be on tap for MY2010.5 in early CY2010.
So, 2010 is actually like a two-year event starting in December with the Fusion and ending in late 2010 with the full roll out of the new C platform vehicles.
@netrun
The Fusion was originally supposed to be a 2009 model launching this fall, but some changes to improve it pushed it back a few months and then greater investment pulled it forward a month or two again. So, now we have a VERY early 2010. Mustang has a similar story (although it has new engines that complicate the picture).
It’s all just dev timing.
@RobertSD
Right on with the Escape/Mariner. I had a chance to drive the ’08 and ’09 back to back yesterday and the change in phenomenal.
RetardedSparks: “please buy 3 million or so of these crappy vehicles that we never cared about”
Ford vehicles are not crappy, they simply have the wrong model mix. The present Explorer is the best ever unfortunately for Ford that is like having the best horse and buggy in 1909.
I feel sorry for the Ford dealerships, yesterday I saw an ad for a new 2008 V6 Mustang $14,500 out the door. Traffic must be bad as customers wait for the new models. In the meantime dealerships need to sell something to keep the doors open.
They can’t get enough hybrid Escapes so in the meantime its Foci for everyone
I’ll bet anyone a TTAC coffee mug that the 2010 Ford Fiesta deservedly wins Automobile and Motor Trend Magazines’ COTY award.
“limp along for one more year”
They don’t have anything lined up to keep it from being that way every year.
Most customers are oblivious to the great new stuff coming. Most customers aren’t car geeks like us…
Most customers are oblivious to the great new stuff coming.
Also true of most sales people of course, but I imagine they get enough car stuff at work. Might be just as well given the Osborne effect though.
They don’t have anything lined up to keep it from being that way every year.
Probably the best thing Ford has going right now is a sharply improving reputation for reliability (those Consumer Reports red dots for the Fusion/Milan are a big deal in the real world). Toyota is powerful evidence that a good reliability rep can move plenty of ho-hum product.
The big question is whether Ford can manage the big product onslaught, along with major factory production shifts, and keep the quality up. Past experience is not encouraging–that’s probably Mulaly’s biggest challenge.
The core car lineup is pretty solid as it is.
The small car Focus is selling very well, just like all small cars, but as evidenced even by a recent review in TTAC, it is a decent all around car and does have some innovative features that are attracting buyers.
The Fusion/Milan/MKZ are all fun, well built vehicles in the segment, and while maybe not blowing up the charts like the Camry, you don’t have to be #1 in sales to be making a profit.
The Taurus/Sable are great cars handicapped by overly conservative styling and a mixed legacy in the name. In the Taurus you can get a 265hp 28mpg large car with tons of head, hip, leg, and trunk room plus 5 star safety ratings all the way around in the mid 20s range before incentives. They handle well for big cars, give better road feel than the Avalon or Lucerne, and have interiors that are well put together, and though not living room quality, don’t appear cheap.
The Crown Victoria is still numero uno in fleet sales for police/taxis/etc, and the Grand Marquis has a loyal following coming into it’s encore final year of production amongst the early bird special afficianados of the world.
The Escape is the 2nd best selling small crossover nationwide, only behind the Honda CR-V, and the ’09 models, as noted above, only make it better with more power and better fuel economy, plus Sync is finally offered.
The Edge/TaurusX/Flex all have their strengths and weaknesses, but overall are just suffering from the industry wide aversion to anything SUV like.
The Explorer/Expedition measure up well against any competition in the large SUV field, but again, no one is buying large SUVs.
And with the F-150, while truck sales have plummeted all around, at least around here Ford is offering far less in the way of rebates/discounts/specials than Dodge/GM/Nissan dealerships, yet we are still selling just as many if not more trucks as any of them.
The way the industry is right now, doing well pretty much equates to sucking less, and Ford is sucking less than most others out there.
At least Ford seems to have a plan. GM, not so much.
At some point, if Ford can pull this off, their stock becomes a buy. Not willing to pull the trigger on the stock yet though…too many eggs in the F150 basket today and the Ecoboost basket tomorrow.
I can’t see any situation where I would buy GM stock since I can’t see any situation with them digging themselves out of their hole.
Or, for that matter, Toyota stock, since total domination is already factored into the share price.
Ford continues to have the best prospects of the 2.8. For one thing, the F150 has survived the Tundra challenge without taking any visible hits. Toyota is already fading fast in the pickup market while the F150 remains the market leader. Sure the whole segment is way down, but it isn’t going to disappear.
How many companies have survived a full on frontal attack from Toyota and walked away barely bruised? All the Tundra seems to really have accomplished is to put a fork in the Titan. Now Toyota is sitting on a big expensive new factory in San Antonio which only has large BOF trucks in it’s repertoire. Even Nissan didn’t make THAT mistake.
I think the Tundra is a great Truck, Comparing mpg’s it Blows away the F-150, But when you look at Bare Bones equipment on both, Toyota gives an edge, but I think most people that get pick ups want middle of the line or top… and in that area, FORD KICKS ASS AND TAKES NAMES!
Honestly I think Toyota has tried to kill FORD, BUT IT AIN”T GONNA HAPPEN!
In the last 2 to 3 years I think FO.MO.CO has really stepped up to the the plate and delivered
some great base hits, and a Home run with the Fusion!
The focus is good, A solid entry sedan, I can’t think of one thing it does badly.
The fusion is EXCELLENT with it’s AWD.(I live in snow country, USA) – The only competition is Subaru and Volvo, and both have BIG price hikes for similar equipment.
The Escape is the perfect size SUV, It is about the size the explorer was in the 90’s I think. (possibly smaller) But that size is perfect. With better Milage, which is in the works… It may be a HO.MO.CO beater when it comes to SUV’s.
The trucks (SUV’s) are dinosaurs, but i think they (FORD) have realized that they shot themselves in the foot. Explorer, Expedition, EXCURSION… That excursion was the dumbest idea of them all!!
If Ford can bring the Euro-Focus to the states, and add AWD, THAT IS MY NEXT CAR, NO IF’s AND’s or BUTT’s!!!!
Because I love Ford, But I love the previous generation Subaru Impreza Sport even more!
I loved my first Car, It was A 1997 Ford Explorer XLT, with leather seats, actually leather everything! And it had a great Factory Stereo system!
The only thing was that it drank gas like… A Ford Explorer.
… I put 70,000 miles onto that car, I bought it used. But one day an asshole ran a red light and T-boned my baby. I was in the car with my mom, dad, and my dog in the back… everyone was fine, except i flipped out on the other guy who caused the accident, The officers had to pull me off him, He had to have been doing 50 in a 30 in a down town city center. The car was totaled, and i made sure the other guy didn’t walk away unscathed. No charges were pressed for the assault. (gave him a beauty of a shiner!) The officer at the scene was luckily my neighbor and he did the right thing convincing the man not to press charges. I had freaked out, That man could have killed me or anyone else in the car!
The officers told me they suspected he was on drugs, I guess he turned out to be a heroin addict.
But on a lighter note… That shows Ford’s commitment to crash test safety!