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Old 06-19-2009, 09:51 AM   #1
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Ford lost a Billion Bucks/ year on the 00-07 Focus?

I hope this isn't a repost.

A recent Wall Street Journal report says Ford lost up to a billion bucks a year on the 00-07 Focus.

For all the respective energy Ford invested in the Focus at it's debut, followed by the the brilliant ZX5 and the SVT's... it's clear by the time of the 05-07 rework, Ford had diluted something important about the Focus -- arguably it was nolonger a tour de force in the market. Many of us feel deleting the hatch's and wagon was an unhappy move.

The US remains a very tough market. Ford is now gearing up for the Fiesta and Focus. I remember now that the Focus had single-handedly replaced two car lines in the US, Escort and Contour -- and now they're going back to two... when gasoline pricing remains volitile and many Americans seem to have quickly have forgotten $4 gas. I wonder who is going to buy these brilliant cars.

Stable gas prices at a higher but not excruciating threshold, might help.

Either way, Ford can only offer these cars if they make money doing so. Let's hope they can see their way through this.



Last edited by akcapfoc; 06-19-2009 at 04:17 PM.
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Old 06-19-2009, 10:01 AM   #2
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I personally don't think it will be an issue. Gas is going to work itself back up to $4. It is already climbing. It doesn't take anything to raise prices anymore. And once they go up, they don't bring them down to where they were. I think these cars are always going to be in demand.
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Old 06-20-2009, 10:11 PM   #3
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That article didn't say much about why they lost $ on the focus. The fact remains that even at $4 per gallon many Americans will switch to driving v6 Mustangs before buying a tiny efficient car. Don't get me wrong - I've owned the massive SUV's 4x4 trucks etc. as well as the diesel VW jetta & now my Focus. I love them all - and only 1 of the dozens of cars I've owned was purchased because of the price of gas.

Some people call it the 'cool tax'. They are willing to pay what ever it costs to drive the cool car.

Now if the Ford Mustang or Dodge Challenger had a 200hp 4 popper 5speed option that got say 28 to 30 mpg. They would go like wildfire. We just have a hard time going sub-compact. In the US most (not all) sub-compact cars have been a horrible flop. Think Yugo or Pinto. We have a long memory - even if the new cars are great.

small cars are like fat chicks - they are a lot of fun, but you don't want your friends to see you with one.
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Old 06-20-2009, 10:35 PM   #4
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Originally Posted by focus-pocus View Post

small cars are like fat chicks - they are a lot of fun, but you don't want your friends to see you with one.

haha
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Old 06-21-2009, 01:38 AM   #5
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was the pinto a flop becuase it was small or because of the ..um.. issue with the flamibility?
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Old 06-21-2009, 02:51 AM   #6
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Quote:
Originally Posted by focus-pocus View Post
In the US most (not all) sub-compact cars have been a horrible flop. Think Yugo or Pinto. We have a long memory - even if the new cars are great.
Actually quite a few subcompacts were popular here in the U.S. in the past.

Ford Escort(1981-2002)

Dodge Omni/Plymouth Horizon(1979-1990)

Dodge Colt/Plymouth Champ(based on Mitsubishi Mirage)(1979-1992)

Volkswagen Golf/Rabbit/GTI(1984-present)

Geo Metro/Suzuki Swift/Pontiac Firefly(Canada)(1989-2002)

Mind you,we were paying less than $2.00 a gallon for gas back then.
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Old 06-21-2009, 07:01 AM   #7
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Now if the Ford Mustang or Dodge Challenger had a 200hp 4 popper 5speed option that got say 28 to 30 mpg. They would go like wildfire.
The Challenger already gets 27 highway MPG with their 6 cyl and the Mustang gets 26 MPG. Both have more than 200hp also. There's no way anyone would buy a 4 cyl beast weighing over 3700 lbs that is supposed to be a muscle car.
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Old 06-22-2009, 11:33 AM   #8
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The Focus lost money because it had to be sold at a loss or close to it. Ford needed to make sure it sold enough Foci to offset it's highly profitable trucks and SUV's in order to remain compliant with the CAFE laws.
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Old 06-22-2009, 03:22 PM   #9
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The price a focus iN europe is MUCH higher then it is in America.

Along with everything, so more room to make money.
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Old 06-22-2009, 07:05 PM   #10
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Ford loses money because they build cars well. I read the same thing about the Escort. The design process and testing is what some would call antiquated, and others would say thorough. Chrysler developed a way to take a car from concept to production eliminating many expensive processes along the way, but at the same time you get what you pay for. Somehow they still went out of business even though at one time not too long ago ChryCo was the most profitable US auto builder.

Right now, building good cars is the most important thing that Ford can do to boost their business and profit.
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