Anybody else watch the news? Ford losing billions

[Mr 5 0]

Originally Posted by Mach 1

I think Ford has a good product line, I believe the 500, Fusion, new Mustang, etc... have all gotten good reviews, they are all good looking cars, and I haven't compared them value-wise to the competition, but I don't see why they cant survive in the long run.

Not to mention the many die-hard Ford truck guys that are extremely brand loyal

Unfortunately, truck sales alone can't save Ford or they would have, already. That's why Ford had to borrow 18 million to 'restructure' the company last year and put much of it's real estate up for collateral. Sales are in the dumper. It doesn't look good. That's why Ford/Toyota merger stories are floating around

While the current Ford vehicle line is decent, the new models are mostly unknown quantities to the average new-car buyer and past Ford quality issues still haunt the company, hurting both public acceptance and sales for the new models. Once you buy a new Ford and have it need go back to the dealer for repairs time and again, that sours you on the brand, as it has many people over the years.

Enter, the Japanese auto manufacturers, who have built up a reputation for both innovation and build quality, as well as holding good re-sale value. Check the retail price on a 2003 Ford Taurus or Focus and a similarly equipped, same mileage 2002 Accord, Civic, Camry or Corolla. There's usually a difference of thousands in the retail price -used - and it's always less for the Ford. There is a simple reason for that: high demand for Japanese cars. Fairly low demand for domestic models. In this instance, Ford. Sure, the Mustang holds it's value pretty well, but the Mustang is a very small part of the market and can't 'save' Ford, any more than it's truck sales can.

This is partly a case of 'chickens coming home to roost' or, more accurately, minus the metaphor; actions have consequences.