Tickets for Ford’s 2012 Focus (coming next spring) start at a Cruze-pipping $16,270 (destination charge not included), but that’s for a “S” Trim four-door sedan with “100A” equipment (rear drum brakes, manual air conditioning steelies). In other words, as with the Fiesta, Ford has made its “come-on-in special” version of the Focus sedan-only. Move up to the “SE” trim for an apples-to-apples comparison, and you find that the Focus hatch carries the same $795 “hatchback tax” as the Fiesta. SE Sedans start at $17,270, while the SE hatchback starts at $18,065 (Sedan pricing in PDF here, Five-Door here). Meanwhile, “Titanium”-spec Focii are knocking on $23k, at which point you’re getting the same 2.0 GDI as the base model, while Cruze customers venturing into similar price territory will have upgraded to the well-received 1.4 Turbo. So why is it that the hatchback tax bothers me the most?
Possibly because I once bought a Mk1 Focus ZX3 for the very reason that it was the cheapest model in the lineup but offered the convenience and superior looks of the hatch with the perfect equipment for a young gent (alloys, CD player). There’s something fundamentally cheap-and-cheerful about hatchbacks… which, to my mind, means there’s something fundamentally cruel and cynical about Ford’s decision to not only tax them but to not offer the bodystyle on the base Focus or Fiesta. On the other hand, the Mk 1 Focus sales were consistently soggy, and as a result we’ve been without a Ford hatchback for years since. Still, if hatchback Focii didn’t sell well when they were the cheapest model of the bunch, how can they sell well now that they’re needlessly taxed?
Meanwhile, why does Ford’s website show the hatchback as actually being cheaper than the sedan?
I prefer to think of the sedan as having an “Ugly discount” for people whose price sensitivity exceeds their ability to make good decisions. :P
Glass half full.
+1
Best line all day!
The “ugly discount” also applies to the Subaru Impreza 2.5i; in the U.S. you pay $500 extra for an equivalently equipped 5-door versus the sedan. (Oddly, the sedan was recently introduced in Japan, where it costs more than the 5-door!)
No matter the trim or body style…the car is hideous.
How Ford is able to keep screwing up fantastic designs is astounding.
How can they go from the beautiful last gen Euro Focus to this abortion?
It’s no wonder Europe hates the new one…
IMO, the hatch has a different body-in-white than the sedan… without knowing the specifics I’d wager that the hardpoints, sheetmetal, and manufacturing steps would cost more in a hatch versus the sedan. In my experience cheap and cheerful 2-box was more expensive than cheap and cheerful 3-box. Even the interior trim and the hatch are more expensive than the trunk liner (or lackthereof) of the sedan.
I’m also sure marketing rationalized that the increase in utility has a perceived priceable value with the customer. It’s easy to couple my manufacturing rationalizations with my marketing rationalizations and the MSRP goes up on the hatch.
If the automaker is wrong, then 6 months from now the hatch will have about $700 of differential incentives on the hood. This will help salesfolk offset the higher sticker price (which translates to about $700 @ invoice) for customers who don’t think the “hatch” is a priceable feature. And then a model year later expect the rear hatch trim to take a material hit since the automaker will slash its variable cost when it realizes customers don’t place any dollar value on that area.
Remember, it’s always easier to start with a high point and take away – than it is to come in low and then take pricing later on when you realize you are underpriced. Of course, if done improperly the initial price kills the vehicle perception outright, and volume is never able to recover. Just talk to anyone who was responsible for price-positioning the Chrysler Pacifica.
I have no problem paying extra for the hatch. What scalds my goose is that I can only get a proper transmission in the base model!
You can get the manual on the SE trim too. It’s well equipped and plenty of options are available, including a sport package, SYNC etc.
Ford have also announced that the ST trim, which has a 6 speed, is coming to the States later on. It’ll be interesting to see the pricing on that considering the Titanium starts at 23k and a GTI costs about, 25k?
This is not as bad as the big price premium (I remember it as around $3K) that Ford charged for a Taurus wagon over a Taurus sedan a few years back.
I think Ford is following Mazda’s model, where the 3 hatch is available only with the bigger engine, and previously in better-equipped trim (now the 2.0 and 2.5 both come in Sport, Touring, Grand Touring, so equipment levels probably aren’t that different).
That strategy doesn’t seem to have hurt the Fiesta hatch, which is making up 60% of US Fiesta sales so far:
http://media.ford.com/article_display.cfm?article_id=33314
It seems there are two things happening: 1) Ford has made the lowly bottom feeder hatchback suddenly chic with its Fiesta marketing (not to mention the fact that the Fiesta hatch is debatably much better looking than the sedan). 2) Consumers downsizing from SUVs and crossovers still want the practicality of these vehicles which are really nothing more than big hatchbacks when you think about it.
Hatchbacks have been the premium option for a while, now. The first Focus ZX5 and ZXW trims were more costly (you could get a ZX3 stripper, which hardly anyone did), and the Protege/5, Elantra, Corolla/Matrix, Mazda3 and more all followed suit. Heck, now the Golf is more “premium” than the Jetta.
“now the Golf is more premium than the Jetta”
Yup, and the Golf Wagon, sorry…Jetta Sportwagon, is the priciest Jetta. I think that VW, Toyota (Prius) and Mazda did all the heavy lifting on this trend, and while I hate seeing the cars that I would actually buy go up in price, it’s a good thing if that signifies more hatch offerings in the future.
Nice to see American companies give us their absolute best in the North American market instead of saving it all for Europe.
You drive cars that are both bigger and more powerful than the Europeans do. Try having a Mustang over there and you will be bankrupt between taxes (on engine size or HP or both, depending on the country) and fuel costs.
Your car segments seem to be moved one notch up, the hot stuff over there is B-C (Fiesta/Polo – Focus/Golf), in the US from what I read is C-D (Corolla/Focus – Fusion/Camry). Your SUV selection is richer also.
The quality of the interior trim is open to debate.
I still don’t see why you have inferiority complex in this matter.
You drive cars that are both bigger and more powerful than the Europeans do. Try having a Mustang over there and you will be bankrupt between taxes (on engine size or HP or both, depending on the country) and fuel costs.
Your car segments seem to be moved one notch up, the hot stuff over there is B-C (Fiesta/Polo – Focus/Golf), in the US from what I read is C-D (Corolla/Focus – Fusion/Camry). Your SUV selection is richer also.
The quality of the interior trim is open to debate.
I still don’t see why you have inferiority complex in this matter.
I can agree however that bringing nice cars that weren’t previously available is a good thing.
Stingray,
I completely understand your perspective…however, there is a lot of momentum in the states towards smaller-yet-still-nice cars, whereas companies have historically tried to get people into larger and larger cars (because those are the only ones with all the nice features).
Even though we don’t have an anti-displacement or carbon-based tax structure, and even though most of our roads will accommodate larger cars quite well, many people are demanding (and finally getting) more “nice AND small” cars to choose from. It’s actually a nice change of pace here.
The Focus, in general, seems expensive to me. $24k for a golf-sized Ford hatch that has a non-turbo 2.0L? I guess I’m too performance minded (i.e. willing to pay for sport seats, steering, suspension, and engine but unwilling to pay for built in factory nav).
FWIW, my 4 door MKV GTI was $500 more than the 2 door model.
Are they built in the same factory?
Either way, I think the Focus hatchback has never looked worse compared to its sedan sibling than with the new model. The rear lights look terrible. Also from the side it’s like a cross between a Lancia Delta and some generic Korean hatch. The front is ok…
Here in the Netherlands, almost nobody buys the sedan. In fact, a lot of manufacturers don’t even bother offering their sedan models of B (Fiesta) and C (Golf) segment cars here anymore. With bigger cars you see a good amount of sedans but even cars like the A6/5-series are sold in something like 60/40% sedan/wagon.
However, in Southern Europe it’s a (much) different story.
If its like the Fiesta, the hatch comes standard with a rear spoiler and rear wider. Adjusting for could eliminate half of the “tax.”
I’ll get these prices into TrueDelta’s database within the next day or so, to permit some thoroughly price and features comparisons.
http://www.truedelta.com/prices.php
I suspected you’d show up in this thread, MK :D
So in a sense, they can “justify the difference” through some of these add-ons based on their retail value, which may or may not hold any value to the consumer. “Hey, that spoiler is a $300 option” (never mind that it’s a $50 part and the customer doesn’t even care about it).
If you think a $24,000 Focus is too high, just wait for the $30,000 Lincoln version coming soon.
And the $26,000 Mercury version !
@Chester
$26k Mercury not gonna happen. They killed the marque.
Chester, Mercury is dead.
And if Ford adds $8000 in content to the Focus, it should be really nice – good enough for Lincoln. This differs from the Cimmaron/Cavalier in that the Focus platform is world-class.
Chester, your quip was not lost on me. +1
Ford can offer it at whatever price they want, but I don’t think there’s much pricing room above $20,000 in this class of vehicle.
Wow, that car looks great. No specifics on the engine, though, and no mention of what versions would be made available with a manual. Probably too early for those details to be announced, but it’s a looker.
When does the Fusion get Mondeo-ized?
YMMV, but all Focuses get a 2.0-liter four, direct-injected, 158 hp. Until the turbo ST arrives.
“When does the Fusion get Mondeo-ized?”
Most of the online buzz speculates that will happen for the 2012 or 2013 model year. How similar the two cars will be is still and open question. Will it be platform sharing like the US vs. European Honda Accords or will the Mondeo and Fusion actually share sheet metal?
Supposedly the 2012 Fusion will be on the same platform as the 2013 Mondeo.
How similar the two cars will be is still and open question. Will it be platform sharing like the US vs. European Honda Accords or will the Mondeo and Fusion actually share sheet metal?
I wonder if Ford is suffering a hatchback hangover from the days when they offered the Focus as a 3-door hatch, 5-door hatch, and a wagon. Talk about overkill. Make the Focus a sedan and wagon, the Fiesta in 3 and 5-door hatches, and call it good. Covers all the bases without overlapping.
The pricing is excessive. Reason? Ford has some heavy debt to service after years and years of excessive UAW wages and benefits they paid and continue to pay. Then, there is the golden retirement packages UAW members were given to reduce workforce levels.
When I go to purchase a car, I am not interested in financing Ford UAW workers. I look at the product. Honda Civic is a much better buy, not to mention it is time tested. Ford has a serious UAW problem, and I doubt retail buyers will “Buy American” in order to help finance the debt used to cover the UAW worker in retirement. Most people would rather buy the Civic, then donate the thousands saved into their own 401K. In this environment, it is every man for himself.
I’m sorry, buts that just an absurd way to think about purchasing the car. The focus for all purposes will be a better car than the Civic, ignoring the fact that you cant even get a Civic hatchback anymore.
It also seems that your political ideals dictate how you would purchase an automobile.
What kind of car enthusiast are you?
I hope you mean the next Civic because the current Civic is not a good buy at all. I’d take a Hyundai/Kia over a current Civic any day.
I had a sneaking suspicion you were irrationally import-biased from your prior posts, jj99, and now it’s quite clear that’s the case.
The Civic is a better buy? Please! We don’t know how good the Focus is yet (it looks to be a very good car, but nothing’s certain) and by the time the new Focus is out there’ll be a new Civic as well, and for all we know Honda could screw it up, improve it vastly, or offer more of the same (the last option seems most likely, going by the spy shots).
And what delusion is this that a Civic buyer will save thousands? Comparing the Civic LX with the new Focus SE, the Ford is $500 cheaper, while the Focus SEL is $200 cheaper than the Civic EX. Hmmm, so after researching actual facts it looks like the FORD buyer will actually save money!
Why don’t you try actually looking at the facts before spouting off about the superiority of the Japanese?
Please note that the Civic does not compete with the Fiesta. (That is the Fit’s job.)
It competes with the Focus, and both the Civic and the Focus are scheduled for extreme makeovers next year. The Honda Civic, compared to the Focus, is a better car NOW. Judging by current models, the Focus has more room for improvement, but we’ll see how this shakes out when both new versions are on the road.
And a big chunk of the money that Ford borrowed was used to cover new product development costs. Ford chose to keep its new vehicles and engines on track, instead of cutting back to save money in the short run. Which, of course, was the wise choice, and (for once) an example of a Detroit automaker not being pennywise, but pound foolish.
Only Civic I’d buy is the strangely sweet looking hatch…And it isn’t sold in the US.
I respectfully disagree. I have no problem with paying for what I want. If most people want sedan and the only way Ford can justify selling a hatch is by charging a little extra — that’s fine with me. I would pay a premium for a premium model.
That’s why I am so pissed that automakers do not offer manual transmissions in many models sold in the US. I can understand charging more money for it. But not offering it at all — that’s just idiotic. Why not offer a minivan with a stick? Charge $1k more, charge $5k more. Whatever the incremental cost would be, some people like me would gladly pay. Automakers would increase sales, make a profit and create happy customers in the process. Why the hell not?!!
Regulations. Here each body and engine combo has to be certified, which is very expensive, even for an OE. They have to figure out the takers for each, so while you may be able to justify, say 20% of buyers with a manual, for many cars the “take rate” will be under 5%. If the model is already niche, like a station wagon 3 series, the makers might not want to incur the cost of certification for the new model. This is probably the biggest reason we “don’t get” lovely powertrain “X”.
I want a manual diesel station wagon. Many posters want car “x” or “y” in the manual. Folks reading TTAC are not mainstream car buyers, and statistically are insignificant.
A good catch by TTAC – No S trim for a Focus with a hatch in the US. – A small bare bones hatch with manual crank windows will be missed by us Luddites.
I guess Ford now knows hatchbacks are now popular an desirable in the U.S.A. Subsequently Ford will try to milk it for all its worth.
The problem was that they tried this with the ZX3 and not many bought.
You could argue that they could have offered a strippo ZX5, but they know that hatch buyers will pay the premium while bottom-feeders will go sedan almost every time.
I have no idea why this happens, but it does. You see more Corolla CEs than base Matrixes, more base Mazda3 sedans than hatches, and so forth. Even hairshirts like the Aveo are trimmed this way. It would be nice to see more variety, but you can’t argue with the economics of scale.
….. and on the other end of the Foci spectrum: What happened to the SES variant of the Ford Focus that had a sport tuned suspension, among other accoutrements?
That sort of thing is an idea mid-cycle product line kicker sort of thing. If it happens, I would expect to see it 2-3 years after the initial roll out.
I believe that was the ST model, or going back a little further, the SVT. It’s said that the ST will be making a comeback…
What surprise ? Lots of folks will want to be trading down from an SUV to a small car in this economy. Most of them will still want cargo, as much as possible….hence the hatchback. also hence the greater cost. They think they can get it. Period.
Look at any car line. The bigger car usually has a foot more body and a half foot more width, but costs 10k more (15k if MB or BMW). Same engine, transmission, electronics and gadgets. The fact that eighteen inches of metal is that much more expensive has to do with the need and income of the folks who need the space….and little to nothing to do with the cost of at most a few pounds more of metal.
I want to trade my 17 mpg SUV for a 35 mpg station wagon (YES, I SAID STATION WAGON) with a diesel. There are a lot of them, just none here in the USA.
Well, it’s not a Diesel, but I do consider it a wagon. My ’05 Scion xB, with just a K&N intake, rarely gets under 34mpg around town.
I want to trade my 17 mpg SUV for a 35 mpg station wagon (YES, I SAID STATION WAGON) with a diesel.
They don’t sell Golf TDI wagons where you are?
I want to trade my 17 mpg SUV for a 35 mpg station wagon (YES, I SAID STATION WAGON) with a diesel. There are a lot of them, just none here in the USA.
Volkswagen has terrible marketing.
Psar,
If his local lots are anything like mine, the answer to ‘Do they sell Golf TDIs where you are?’ is ‘kinda-sorta.’ Salesman at both lots said they had moved 3 & 6 Golf TDIs from January-August, respectively. Neither lot had any inventory and neither had any coming in the next several weeks. Plenty of TDI Sportwagens, too big and pricey for my taste; and the folks who have Golf TDIs are known to keep them until they or their cars die.
S = rental and fleet special
The only people likely to be driving Fiesta S models are low-man-on-the-totem-pole corporate and goverment users. Five door hatchbacks are moderately more expensive to manufacture than are four door sedans, but probably not by enough to account for the price difference.
All in all, I’m suspect Ford has got their market research and product positioning right on this line up. What I want to know is when the wagon version will be released in the states!
Many of your commenters have nailed it:
The SUV is their most profitable model, after all, it’s just a fancy truck, with fewer pollution and safety regulations. So, if you’re going to abandon their most profitable line, for a hatch with the most cargo capacity YOUR GOING TO PAY for It.
On the SE and SEL models, the 5-door is $795 more than the Sedan. The 5-door has several additional features not found on the 4-door Sedan- Body-color rear spoiler, Rear window wiiper, Removable cargo-area package tray and 60/40-split folding rear seats with tip-fold-flat feature.
On the top-end Titanium trim level, the 5-door only costs $495 more than the Sedan. The Titanium Sedan has a standard rear spoiler, which explains the $300 lower price gap between the two body styles.
The difference between 4-door and 5-door versions of the Fiesta is $800. The 5-door adds a Rear spoiler, rear wiper and a body-color grille in place of the 3-bar chrome grille. The $800 premium is pretty steep for the upgrades you get on the Fiesta, especially compared to the Fiesta.
Ford isn’t the only one who prices 5-door hatchback models higher than their 4-door sedan counterparts. The 5-door Mazda3 and Subaru Impreza are both priced $500 higher than their identically equipped sedan versions!