Debunking the 'It's too expensive to import over here' argument
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Closet American





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Debunking the 'It's too expensive to import over here' argument
From Automotive News via Autoblog.
Lutz says importing Astra saved $900 million
The Saturn Astra represents a quantum leap forward for GM in the small car market. For a mere $100 million, which is chicken feed for a new product, the General traded in the uninspiring Ion for the European juggernaut Opel Astra. Many thought GM was merely buying time (literally) until a truly global Astra appears in 2010, since we've been told for years that it was too expensive (see: Focus) to retro-fit a Euro-car for the US Market. Maximum Bob has turned that paradigm upside down, as he explained that the spared development costs have netted GM savings of about $900 million. Of course, GM would probably never shell out $1 billion for a small car with a volume of 45,000 units per year, but since the General makes products all over the globe, it makes sense to sell the best cars and trucks wherever it can. If it helps keep your factories at full capacity while saving $900 million at the same time, than that's cool, too. Hey, if this is the new reality of automakers going global, we're all for it. Now Ford, bring on that Mondeo already!
The Saturn Astra represents a quantum leap forward for GM in the small car market. For a mere $100 million, which is chicken feed for a new product, the General traded in the uninspiring Ion for the European juggernaut Opel Astra. Many thought GM was merely buying time (literally) until a truly global Astra appears in 2010, since we've been told for years that it was too expensive (see: Focus) to retro-fit a Euro-car for the US Market. Maximum Bob has turned that paradigm upside down, as he explained that the spared development costs have netted GM savings of about $900 million. Of course, GM would probably never shell out $1 billion for a small car with a volume of 45,000 units per year, but since the General makes products all over the globe, it makes sense to sell the best cars and trucks wherever it can. If it helps keep your factories at full capacity while saving $900 million at the same time, than that's cool, too. Hey, if this is the new reality of automakers going global, we're all for it. Now Ford, bring on that Mondeo already!
Man, Ford needs to hire away Lutz from GM. That guy simply gets things done whereas Ford just seems mired in a morass of beauracracy and why-we-can't-do-it excuses.
Ford still seems to harbor the Old Detroit Think regarding small cars as cheap, money-looser, econo boxes for people who can't afford bigger "real" cars. Rather, GM seems to be understanding that people will want, buy and pay good money for small cars that are actually desirable rather than penalty-boxes.
The current straight-to-rebates/rental-car-lots American Focus borders on embarrasing, to say nothing of the pug-ugly coupe version.
Ford just needs to quit snivelling, quit making lame excuses, buckle down and get the Euro Focus here yesterday. Period.
And the Mondeo? The Fusion's a nice enough car, but nice enough ain't good enough in todays market. If it were, Ford would be drowning in black ink, not red. Get the Mondeo over here, yesterday, too.
How's this for a simple idea, turn the comatose Mercury division into Ford's import division much as GM seems to be doing with Saturn. Mercury's current primped Ford models lineup is about as useful as a third leg. Instead, make it the emporium for global Ford's various, and very interesting, Euro and Aussie wares. Mercury finally gets off life support with a viable mission and lineup, and Ford N.A. customers finally get to tap into all the cool cars we've been denied for so long.
Ford still seems to harbor the Old Detroit Think regarding small cars as cheap, money-looser, econo boxes for people who can't afford bigger "real" cars. Rather, GM seems to be understanding that people will want, buy and pay good money for small cars that are actually desirable rather than penalty-boxes.
The current straight-to-rebates/rental-car-lots American Focus borders on embarrasing, to say nothing of the pug-ugly coupe version.
Ford just needs to quit snivelling, quit making lame excuses, buckle down and get the Euro Focus here yesterday. Period.
And the Mondeo? The Fusion's a nice enough car, but nice enough ain't good enough in todays market. If it were, Ford would be drowning in black ink, not red. Get the Mondeo over here, yesterday, too.
How's this for a simple idea, turn the comatose Mercury division into Ford's import division much as GM seems to be doing with Saturn. Mercury's current primped Ford models lineup is about as useful as a third leg. Instead, make it the emporium for global Ford's various, and very interesting, Euro and Aussie wares. Mercury finally gets off life support with a viable mission and lineup, and Ford N.A. customers finally get to tap into all the cool cars we've been denied for so long.
Yeah, but the Cobalt, yawnnnnnn.... Astra's way cooler, especially if they do the obvious and plunk the 2.0 turbo out of the Solstice/Sky in that thing = instant Mazda MS3 /GTI competition.
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Closet American





Joined: July 17, 2005
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From: Vancouver, BC (Hollywood North)
How's this for a simple idea, turn the comatose Mercury division into Ford's import division much as GM seems to be doing with Saturn. Mercury's current primped Ford models lineup is about as useful as a third leg. Instead, make it the emporium for global Ford's various, and very interesting, Euro and Aussie wares. Mercury finally gets off life support with a viable mission and lineup, and Ford N.A. customers finally get to tap into all the cool cars we've been denied for so long.
As GM keeps announcing (and showing) new products and product plans, Ford of North America is... um ... well, I'm not sure WHAT Ford North America is doing, really. Another SE Mustang, per chance? Maybe another SUV/CUV/minivan/truck variant?
They're paying Mulally HOW much, again?
The idea of Mercury as a conduit for European Fords in America is not a new idea, but it is a good one. I'm always amazed by the circular logic Ford execs seem to employ with regards to Mercury. Mercury isn't a viable brand because it doesn't sell, and it doesn't sell because it's just prettier Fords with a few grand slapped on the sticker. But they won't give it new product that could sell because the rebadged Fords don't sell. It's a case of sticking with what doesn't work. And worse, with what you know doesn't work. And killing Mercury isn't really an option right now either. Just look at Oldsmobile, IIRC it cost GM over 1.5 billion to kill that brand.
The idea of Mercury as a conduit for European Fords in America is not a new idea, but it is a good one. I'm always amazed by the circular logic Ford execs seem to employ with regards to Mercury. Mercury isn't a viable brand because it doesn't sell, and it doesn't sell because it's just prettier Fords with a few grand slapped on the sticker. But they won't give it new product that could sell because the rebadged Fords don't sell. It's a case of sticking with what doesn't work. And worse, with what you know doesn't work. And killing Mercury isn't really an option right now either. Just look at Oldsmobile, IIRC it cost GM over 1.5 billion to kill that brand.
You don't need a business degree to see the flaws in these arguments. The fact that so many running major companies make six figure incomes to essentially ignore the obvious is amazing.
Man, Ford needs to hire away Lutz from GM. That guy simply gets things done whereas Ford just seems mired in a morass of beauracracy and why-we-can't-do-it excuses.
Ford still seems to harbor the Old Detroit Think regarding small cars as cheap, money-looser, econo boxes for people who can't afford bigger "real" cars. Rather, GM seems to be understanding that people will want, buy and pay good money for small cars that are actually desirable rather than penalty-boxes.
The current straight-to-rebates/rental-car-lots American Focus borders on embarrasing, to say nothing of the pug-ugly coupe version.
Ford just needs to quit snivelling, quit making lame excuses, buckle down and get the Euro Focus here yesterday. Period.
And the Mondeo? The Fusion's a nice enough car, but nice enough ain't good enough in todays market. If it were, Ford would be drowning in black ink, not red. Get the Mondeo over here, yesterday, too.
How's this for a simple idea, turn the comatose Mercury division into Ford's import division much as GM seems to be doing with Saturn. Mercury's current primped Ford models lineup is about as useful as a third leg. Instead, make it the emporium for global Ford's various, and very interesting, Euro and Aussie wares. Mercury finally gets off life support with a viable mission and lineup, and Ford N.A. customers finally get to tap into all the cool cars we've been denied for so long.
Ford still seems to harbor the Old Detroit Think regarding small cars as cheap, money-looser, econo boxes for people who can't afford bigger "real" cars. Rather, GM seems to be understanding that people will want, buy and pay good money for small cars that are actually desirable rather than penalty-boxes.
The current straight-to-rebates/rental-car-lots American Focus borders on embarrasing, to say nothing of the pug-ugly coupe version.
Ford just needs to quit snivelling, quit making lame excuses, buckle down and get the Euro Focus here yesterday. Period.
And the Mondeo? The Fusion's a nice enough car, but nice enough ain't good enough in todays market. If it were, Ford would be drowning in black ink, not red. Get the Mondeo over here, yesterday, too.
How's this for a simple idea, turn the comatose Mercury division into Ford's import division much as GM seems to be doing with Saturn. Mercury's current primped Ford models lineup is about as useful as a third leg. Instead, make it the emporium for global Ford's various, and very interesting, Euro and Aussie wares. Mercury finally gets off life support with a viable mission and lineup, and Ford N.A. customers finally get to tap into all the cool cars we've been denied for so long.
To some point it has validity I suppose but certain models such as the Focus would do fine.
The Ka might also do OK but that one probably will not meet US regulation requirements.
Sadly, Ford's previous attempts to hawk their foreign wares here have generally been pretty pathetic, with the predictable failure of these efforts now being used to pooh pooh any new attempts to do so.
As an example, having Mercury sell the Merkurs back in the '80s. The Merkur were actually pretty interesting and decent cars, but rather avant garde in appearance. But Mercury dealers had a hard time fathoming how to sell anything without a Landeau roof, wire hubcaps and the interior aesthetic of a New Orleans bordello. Needless to say, the effort eventually failed.
An earlier attempt, with the then German Capri and Capri II did fairly well for a while, though in a fit of tackiness, they fitted
vinyl roofs to some of them -- figuring if it looks good on a hearse, it ought to look good on a European sport coupe too. But then they switched to the FoxStang chassis in '79, which eventually got all bloated in the rear like it was stung by a giant bee and the utter redundancy of selling essentially a fat-assed Mustang doomed it too.
So Ford (mis)management probably looks at these miserable efforts and in their unique circular illogic ask why again? Well, if the intention is to recreate these half-baked efforts then, the answer is obviously not to.
But rather, the question ought to be how to do it right. Mercury is a useful to the Ford marque as a third ******** but they don't have the backbone to euthanize it. So if you ain't gonna kill it, and it ain't working as it is, why not make the division named after the fleet footed messenger god sell some fleet footed cars from the Old World?
The yuppies and fashion-forward folks of America do evidence a viable market for such cars that Ford sells in Europe, so why not do a Lutz and just bring the dang thangs over here. As the Astra argument shows, it'll be a lot cheaper to bring a car to U.S. spec than designing a whole new one from a clean sheet.
As an example, having Mercury sell the Merkurs back in the '80s. The Merkur were actually pretty interesting and decent cars, but rather avant garde in appearance. But Mercury dealers had a hard time fathoming how to sell anything without a Landeau roof, wire hubcaps and the interior aesthetic of a New Orleans bordello. Needless to say, the effort eventually failed.
An earlier attempt, with the then German Capri and Capri II did fairly well for a while, though in a fit of tackiness, they fitted
vinyl roofs to some of them -- figuring if it looks good on a hearse, it ought to look good on a European sport coupe too. But then they switched to the FoxStang chassis in '79, which eventually got all bloated in the rear like it was stung by a giant bee and the utter redundancy of selling essentially a fat-assed Mustang doomed it too.
So Ford (mis)management probably looks at these miserable efforts and in their unique circular illogic ask why again? Well, if the intention is to recreate these half-baked efforts then, the answer is obviously not to.
But rather, the question ought to be how to do it right. Mercury is a useful to the Ford marque as a third ******** but they don't have the backbone to euthanize it. So if you ain't gonna kill it, and it ain't working as it is, why not make the division named after the fleet footed messenger god sell some fleet footed cars from the Old World?
The yuppies and fashion-forward folks of America do evidence a viable market for such cars that Ford sells in Europe, so why not do a Lutz and just bring the dang thangs over here. As the Astra argument shows, it'll be a lot cheaper to bring a car to U.S. spec than designing a whole new one from a clean sheet.
Sadly, Ford's previous attempts to hawk their foreign wares here have generally been pretty pathetic, with the predictable failure of these efforts now being used to pooh pooh any new attempts to do so.
As an example, having Mercury sell the Merkurs back in the '80s. The Merkur were actually pretty interesting and decent cars, but rather avant garde in appearance. But Mercury dealers had a hard time fathoming how to sell anything without a Landeau roof, wire hubcaps and the interior aesthetic of a New Orleans bordello. Needless to say, the effort eventually failed.
As an example, having Mercury sell the Merkurs back in the '80s. The Merkur were actually pretty interesting and decent cars, but rather avant garde in appearance. But Mercury dealers had a hard time fathoming how to sell anything without a Landeau roof, wire hubcaps and the interior aesthetic of a New Orleans bordello. Needless to say, the effort eventually failed.
An earlier attempt, with the then German Capri and Capri II did fairly well for a while, though in a fit of tackiness, they fitted vinyl roofs to some of them -- figuring if it looks good on a hearse, it ought to look good on a European sport coupe too. But then they switched to the FoxStang chassis in '79, which eventually got all bloated in the rear like it was stung by a giant bee and the utter redundancy of selling essentially a fat-assed Mustang doomed it too.
Originally Posted by rhumb
But rather, the question ought to be how to do it right. Mercury is a useful to the Ford marque as a third ******** but they don't have the backbone to euthanize it. So if you ain't gonna kill it, and it ain't working as it is, why not make the division named after the fleet footed messenger god sell some fleet footed cars from the Old World?
Originally Posted by rhumb
The yuppies and fashion-forward folks of America do evidence a viable market for such cars that Ford sells in Europe, so why not do a Lutz and just bring the dang thangs over here. As the Astra argument shows, it'll be a lot cheaper to bring a car to U.S. spec than designing a whole new one from a clean sheet.
Some will no doubt argue that North American isn't doing a very good job of developing worthwhile product right now claiming instead that importation is the simple fix, and they have a point. However, since the product North America is producing is a direct reflection of how management runs these corporations my retort is simple. If these guys aren't competent enough to oversee the devlopment of good product here in the US why would anybody assume that they would have the foresight to seek out good product elsewhere?
The real solution remains to develop and produce good product here and abroad employing the brands already in place to market both worldwide maximing choice and market share. Bring FOE and FOA product to our shores, but do it under the Mercury badge using realistic price, profitability, and volume projections in the process.
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Closet American





Joined: July 17, 2005
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At this point, I don't care WHAT Ford does, but they better do something...and fast.
Like the old saying goes: As long as you keep doin' what yer doin', you'll keep gettin' what yer gettin'. And with few exceptions, we all know what we've been gettin' from Ford in recent years.
Like the old saying goes: As long as you keep doin' what yer doin', you'll keep gettin' what yer gettin'. And with few exceptions, we all know what we've been gettin' from Ford in recent years.
I'd love to see a reskinned S197 in the form of a cougar. Just like the 1st gen stangs. Making the cougar a Tbird clone was dumb imo. It would be cool IMO to see Mercury as a competitor to the new range of pontiacs comming . Aren't they both in essence the same thing upscale versions of their twins?
Its probably not Mulally, Ford still has alot of old guard left in managment, along with old ideas and old ways of doing things, The shareholders need to get a clue and fir... I'm mean offer a nice retirement package for the lot of them and keep on replacing with a new crew.
This "rebadging-Opels-as-Saturns" has not yet proven to be a successful strategy. The Aura has sold far below expections in spite of all the accolades heaped upon. It will be interesting to see if the Astra fares any better.
IIRC, in the time that Camaro got one face lift, Firebird had been through 2 front ends, 3 or 4 tails and 1 interior and all Camaro got for it was a lousy scoop and some SS badges, compared to Mustang's various SEs (Bullitt, Mach, Cobra, and so on). Even worse, Camaro was the sales leader between the two F bodies but got little if any money.
The intent was obvious, increase Firebird sales, but the execution ultimately helped to put another nail in the F-body's demise in 02.
I dont want that for Mustang, especially if sales take a dive with Challenger/Camaro coming on board.
The Astra's a nice looking car, but after test-driving an Opel, I wouldn't get one. It's not the power or the looks. It's the fact that you can't see crap out the back window. Parking sensors are a MUST if you buy this car.
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