Quote:
Originally Posted by Yellow_Festiva
It's not about profit - it's getting people through the doors.
When I bought my brand new top spec Outlander I entered the dealership looking to buy a mid spec ASX.
Take the small car as an example. If you were looking at spending $25k and Hyundai, Nissan, Holden, Kia all had something starting at $22k then you would make the effort to go to the dealerships and see what you can get.
If the other brands were totally out of your range you probably wouldn't bother.
Especially after the Powershift debacle. You need to get people through the doors and great sales people to explain the new car and the totally different transmission now in the car.
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Unfortunately Ford has moved away from that sales model, the current CEO is enamoured
with higher returns on revenues, so selling more at lower profit levels actually hurts the %
Yeah, I know it sounds fulla Sh... but that's the way the Detroit masters think these days
they would rather take less ultimate profit and gloat about achieving a higher return %.
None of this helps dealers who basically live to sell and service cars, it's like corporate Ford
cannot and will not see the damage selling fewer vehicles is doing to Ford globally.
The system works in America where it's all about selling high profit F trucks and SUVs but,
that experience has not transitioned to our market save for Ranger being a knock out.
I don't know how Ford reconciles this, they're generally $3K-$4K above what our market prices
but it seems that they only want to pick the eyes out of sales with mid/upper trim sales.
Maybe Ford needs to go back to Mulally's slogan 'affordable quality cars'....