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The auto-giant may have reason to smile
We’re all pretty much in limbo when it comes to the American auto industry. We want the companies to do well and succeed, because we’ll end up with less competition and higher prices, and a drop in GDP, if they fail.
But, with recent news from Ford and GM, much still looks bleak. On a good note, however, Chrysler’s sales went up 2.5% in February, while Ford and GM both reported sales decreases.
While the Auburn Hills-based Chrysler Group reported a sales gain of 2.5% last month, consumers bought fewer new cars and trucks from both Ford Motor Co. and General Motors Corp.
Sales declined 4% at Ford and 2.6% at GM, the companies reported Wednesday. Other automakers were slated to release their results later in the day.
Analysts are expecting industry-wide sales in February to be strong compared to the same month a year ago.
Three of GM’s eight brands – Buick, Hummer and Saab – reported gains, while the other five posted declines. Sales of the company’s big Hummer SUVs more than doubled in February compared to a year ago.
Six of Ford’s brands reported sales declines. Only Land Rover was up, by 27.8% compared to the same month a year ago.
Chrysler also had a mixed result, with Chrysler and Jeep sales up, and Dodge sales down a slight 1%.
Auto analyst Himanshu Patel of JP Morgan Securities Inc. said Ford outperformed expectations.
“We expect a neutral to modestly positive reaction to the company’s release,” he wrote in a research note to investors.
GM’s performance, however, was “modestly below expectations.”
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The new Ford Focus is an intelligent buy.
In 2000 the Ford Focus was introduced to the world. However, the world was not so fond of the new compact. There were many design problems and mechanical errors that prohibited the vehicle from being successful.
Nevertheless, with time and a good plan, Ford has redesigned and refashioned this car into a great buy.
Aggressive Price.
Yes, the number of cars available under US$15,000 continues to drop each year. However, the Focus takes it one step further as it retails just below $14,000.
Sufficient Power.
The 2.0L I4 engine paired to a five speed manual transmission gives the car enough power to get it moving and keep it moving at a nice clip on the freeway. Competing models offer smaller engines as small as 1.6L as found in the Kia Rio.
Spacious Interior.
Up to five people can be carried in the Focus and the interior room is large for a car in its segment
An Assortment of Body Styles.
Most cars built today come in only one or two body styles, however the Focus features four: a three-door ZX3 hatchback, a five-door ZX5 hatchback, a ZX4 sedan and the ZXW wagon. It is the ZX3 that retails for as low as US$13,990.
Respectable Fuel Economy.
With EPA figures of 26 city / 34 highway, the Focus achieves a fuel mileage level that few small cars can boast of.
The Ford focus is now a great buy for all.
But, it is especially promising for those with smaller budgets. And, it provides a great alternative to those who want to save money at the gas pump.
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Ford reworking advertising and sales strategy
Ford is in the spotlight this week.
They’re going back to the basics in hopes of selling more vehicles this year. With the car industry in a slump, going back to the basics may not be a bad idea. Ford is calling this new campaign "focus vehicle." Ford will be focusing on eight models of their inventory and will be offering incentives, dealer bonuses, and market muscle to push vehicle sales.
Ford says the idea is to spend promotional money more intelligently, increase showroom traffic and reduce floor plan costs by turning vehicles faster.
In 2005 it took 82 days for Ford vehicles to sell. That’s 17 more days than the average for the automotive industry. That’s what they’re trying to change.
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- Chevy Ads
Ford and chevy are changing. Take a look at how Chevy plans to change
- Auto Warranties
Call 1.800.419.3499 for information on your next car warranty
A Year In Review
Detriot’s news of late has been doom and gloom. With strikes, low sales, and dismal growth, the auto industry doesn’t have much to celebrate.
General Motors Corp. Chairman and CEO Rick Wagoner sent a memo to workers in November assuring them bankruptcy isn’t an option for the world’s largest automaker, but concerns about GM’s financial health persist. The company recently announced a plan to cut 30,000 jobs and close 12 facilities by 2008. Next year, the automaker, which has a Fort Wayne plant, plans to sell a majority stake in its profitable finance arm, GMAC, to raise cash.
Ford Motor Co. is expected to announce its own restructuring plan in January. The nation’s No. 2 automaker had its share of turmoil this year, including an expensive bailout for its former parts division, Visteon Corp.
But, analysts say things are looking better for the coming year.
Despite the gloom in Detroit, 2005 will end on a fairly high note. Analysts are predicting full-year sales of around 17 million vehicles, a healthy pace that has held steady over the past 6 years.
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For the first time since the 80s, Chevrolet tops Ford in car sales
While Chevrolet points to clearance sales and quality improvements as driving the leap over Ford, some industry experts are blaming Ford’s poor performance this year.
Ford’s U.S. sales fell to 2.78 million last year from 3.47 million vehicles in 2000. That was the same year Firestone’s recall of more than 6.5 million tires, most on the Ford Explorer, raised questions about the safety of the top-selling SUV.
Chevrolet’s stronger sales are a rare bit of good news for GM.
The automaker announced plans last month to stop production at a dozen North American plants and cut 30,000 hourly jobs by the end of 2008. The company has lost nearly $5 billion in its North American automotive operations this year.
But Chevrolet really isn’t focusing much on the #1 spot publicly. Instead they are choosing to downplay the honor because industry analysts say Toyota will soon take the top slot.
Finally though, some good news for GM, at least for now.
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More Job Losses Ahead for Auto Giant
Due to gas prices last quarter and poor performance from Volvo, Ford is cutting a little over 5% of Volvo’s workforce. The job cuts fall mainly in Sweden, with a small portion from Belguim.
The automaker will eliminate 1,470 positions, primarily in Sweden and Belgium, out of a total workforce of 27,500 people, Gothenburg, Sweden-based Volvo Cars said Monday.
"We have to reduce the number of employees we have in order to be more effective in the future," Christer Gustafsson, a Volvo spokesman, said in an interview. "We are reviewing all cost-driving areas within the company."
These cuts are not due to the auto giant’s earlier plans to reduce their workforce by 10,000 jobs by years end. Those cuts will be on top of these at Volvo.
Looks like Ford employees will have a very stressful holiday season.
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Crossover market is attractive to Ford
Ford looks to take advantage of skyrocketing gas prices by introducing several vehicles that target the SUV driver that doesn’t go off-road. One of these, Ford’s Edge, is looking to attract the consumer that looks for style and affordability, rather than luxury with no eye to price.
The crossover segment is expected to grow from 2.5 million vehicles this year to 3.5 million by 2010. Automakers are counting on crossovers to fill the void created by declining SUV sales. Though the definition of a crossover varies, vehicles commonly classified in the segment include the Pontiac Vibe, Chrysler PT Cruiser and Nissan Murano. Luxury crossovers include the Acura MDX and Lexus RX.
The Edge will run on the Mazda6 platform, like the other crossover vehicles, Ford Fusion, Mercury Milan, Lincoln Aviator, and Lincoln Zephyr.
In a related story, former Ford company, Delphi, reports a $788 Million loss in Q4.
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