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Discussion Starter · #1 ·
With all the great reviews from the rags, and all the positive comments on this forum and my own personal experience;

Is Ford using the Lexus approach to redefine the small car segment?

I refer to the "Lexus approach" because back when Toyota first decided to
take on the Germans (Mercedes, BMW, AUDI) and compete for the luxury car
market, they built a car that had everything they had, and more. But for a much
lower price, initially. Then when the buying public got hooked on the product they slowly raised the price.

With all the good stuff built into our new Foci and what I believe is a very reasonable price,
are price hikes in the future. Is Ford making enough money for the product.
 

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I refer to the "Lexus approach" because back when Toyota first decided to
take on the Germans (Mercedes, BMW, AUDI) and compete for the luxury car
market, they built a car that had everything they had, and more. But for a much lower price, initially. Then when the buying public got hooked on the product they slowly raised the price.
Sounds like what Hyundai is trying to do, actually.
 

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I'm not sure if Ford is really trying to take on luxury car makers with cars like the Focus.

What I think is happening really is that Ford a couple of years ago realized that many Americans with larger, more featured and luxurious cars were down-sizing their vehicles due to fuel prices and Ford felt it was finally time to capitalize on it by bringing a more fully featured compact to this market.

Remember that in Europe, Ford has been selling an up-scale Focus for years, and I don't think the Germans are afraid of them.
 

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With all the great reviews from the rags, and all the positive comments on this forum and my own personal experience;

Is Ford using the Lexus approach to redefine the small car segment?

I refer to the "Lexus approach" because back when Toyota first decided to
take on the Germans (Mercedes, BMW, AUDI) and compete for the luxury car
market, they built a car that had everything they had, and more. But for a much
lower price, initially. Then when the buying public got hooked on the product they slowly raised the price.

With all the good stuff built into our new Foci and what I believe is a very reasonable price,
are price hikes in the future. Is Ford making enough money for the product.
Great post, and welcome to the great Ford cars the rest of the world has been enjoying. Many Euro car review magazines mention how Ford
cars are a good choice for those who do not need the premium badge of some of the luxury makers.
Lots of comparo's with the new Focus verus Audi A3, & BMW 1 series talked about over here. Lexus cars don't seem to register much on
consumers in Europe, not a player at all in Europe.
I am sure Ford N.A. is very happy with the profit it is making on the new Focus, and moreso that many are choosing the top spec models.

As far as raising prices, don't think you will see Ford raise pricing, unless vital materials like steel and other commodities cost gets out of hand.

I think you will see Toyota raise its MSRP's and maybe Honda and Nissan.

Hyundai/Kia pricing will probably remain as this company does so much in house to keep its costs very low per unit.
 

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My dealer says Ford re-evaluates it's price every quarter and decides on increasing/decreasing the sticker prices based on their ratings.
 

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It's a natural progression of a model. The Focus was the only compact offering at Ford for the longest time. But now with a more uplevel Focus, they had to introduce the Fiesta for people looking for something a bit more 'entry' level.

Same happened with Civic. That's why now you have the Fit.

Nissan Sentra was the entry level (after the Micra went away). Now you have the Versa.

Corolla went up, so they brought you Yaris.
 

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I'm not sure if Ford is really trying to take on luxury car makers with cars like the Focus.

What I think is happening really is that Ford a couple of years ago realized that many Americans with larger, more featured and luxurious cars were down-sizing their vehicles due to fuel prices and Ford felt it was finally time to capitalize on it by bringing a more fully featured compact to this market.

Remember that in Europe, Ford has been selling an up-scale Focus for years, and I don't think the Germans are afraid of them.
I feel you are spot on with this. Ford knows what the market wants and there are a lot of us baby boomer's out there that were waiting for an American company to come out with something like the upscale Focus. Just enough room and decent power and loaded with all the things we have been use to driving over the years. For myself, I would never buy a rice burner and the New Focus Titanium filled the bill for me.[thumb][thumb]
 

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Discussion Starter · #8 ·
I'm not sure if Ford is really trying to take on luxury car makers with cars like the Focus.
No, not what I said. Ford is wanting to take on the small car makers;
Honda and Toyota, who have dominated this small car segment. Why?
Because Honda and Toyota built small cars of quality and reliability.

It's obvious that Hyundai is at the same game as Ford. They had to offer a ten
year warranty just to get people back in the showroom after a bad start with quality.
Now they are actually building better quality cars.

I just wonder about whether Ford has price increases in mind so they can
actually make some money selling these. I'm a share holder in Ford, it would
be nice if the stock price goes up.
 

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No, not what I said. Ford is wanting to take on the small car makers;
Honda and Toyota, who have dominated this small car segment. Why?
Because Honda and Toyota built small cars of quality and reliability.

It's obvious that Hyundai is at the same game as Ford. They had to offer a ten
year warranty just to get people back in the showroom after a bad start with quality.
Now they are actually building better quality cars.

I just wonder about whether Ford has price increases in mind so they can
actually make some money selling these. I'm a share holder in Ford, it would
be nice if the stock price goes up.
I imagine that the cost to build the Focus is actually quite low, as there is really nothing other than the dual clutch tranny that strikes me as being particularly expensive.

Ford might not make much on a base model, (probably still profiting over $2000 I bet) but I bet they are making oodless on the upgraded ones.
 

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I don't think any one car maker has pricing power these days. The Asian manufacturers are having to deal with production issues and some product problems (as in Honda/Toyota) and U.S. makers are just now coming to the market with competitive products. In the meantime, Hyundai/Kia are diluting market shares with their improved offerings but have production limits.

Probably the two major factors influencing pricing for the industry now are rising commodity/supplier prices and the lackluster economy.

So basically until the small car category is more universally accepted in the U.S.,
it looks like very competitive marketplace.
 

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A guy I work with went to a dealer and the dealer said he could order whatever he wanted. $1000.00 above invoice. After he walked out, he went to my dealer who had about 8 in stock and got $2000.00 below invoice.
 

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A guy I work with went to a dealer and the dealer said he could order whatever he wanted. $1000.00 above invoice. After he walked out, he went to my dealer who had about 8 in stock and got $2000.00 below invoice.
$2000 below invoice, or sticker? If its $2000 below invoice, that has to be some sort of employee pricing. No way a dealer is going $2000 below invoice.
 

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$2000 below invoice, or sticker? If its $2000 below invoice, that has to be some sort of employee pricing. No way a dealer is going $2000 below invoice.
Sticker. I meant sticker.
 
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