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BlackandBlue

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I'm curious, now that Ford-e has been announced, what will be the next all electric vehicle Ford will come out with after the Mach-e, Lightning, and e-Transit?
They better be planning on making micro eletric cars like yesterday. The demand for large gas SUVs and trucks is going to decline greatly with 6-7 dollar a gallon gas.

 

IceGamer

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They better be planning on making micro eletric cars like yesterday. The demand for large gas SUVs and trucks is going to decline greatly with 6-7 dollar a gallon gas.
Quite the opposite is the case. The demand for bigger, faster and more luxurious cars is growing, at least in the EU and probably around the world as well. I think the US is somewhat special as they have ridiculously low gas prices and already large cars everywhere…

However, answering your question I would look at Fords investments and they stated that they’ll invest 1$ billion in Cologne and make every car zero emission capable comes 2026. Looking at the cars they build around here and looking at the competition – Ford Europe will most certainly come up with electric versions of the Fiesta, Puma, Focus, Kuga and the Mondeo. I would also argue that they’re going to build ST and RS derivatives of (some of) these cars.
 

1958cyclist

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It will be interesting to see how Ford corporate continues to transforms their dealership network relative to service. Clearly, they've decided to separate or appear to separate EV sales from ICE sales. I'd be curious to see how the service side reshuffles itself. This is where the real money is made...and in pre-owned vehicles...but with EV's needing less maintenance, where will those dollars be made up? They'll have to sell a lot of expensive tires to close that gap! Maybe the margins will be made in MU? I'd assume that manufacturing EV's is more efficient due to a reduction in total parts and therefore assembly steps, but these efficiencies in theory would only benefit the manufacturer.
 

SkyZykS

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Can anyone answer me this "THEY DON'T KNOW HOW TO RECYCLE THE OLD BATTERYS YET" so where's these saving the environment going? Pollution either way.
 

1958cyclist

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Actually, they do know how to recycle these batteries. Ford just bought into a large facility and I believe is building another. The challenge will be extracting them from each vehicle for said purpose, and then replacing them or salvaging the remaining parts of what's left of the vehicle. The cost to replace these is really expensive. I guess that makes these vehicles totally recyclable? Wonder what this does for the potential collector market, assuming that there is one for EV's?
 


DeluxeStang

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Quite the opposite is the case. The demand for bigger, faster and more luxurious cars is growing, at least in the EU and probably around the world as well. I think the US is somewhat special as they have ridiculously low gas prices and already large cars everywhere…

However, answering your question I would look at Fords investments and they stated that they’ll invest 1$ billion in Cologne and make every car zero emission capable comes 2026. Looking at the cars they build around here and looking at the competition – Ford Europe will most certainly come up with electric versions of the Fiesta, Puma, Focus, Kuga and the Mondeo. I would also argue that they’re going to build ST and RS derivatives of (some of) these cars.
Gas prices in the US are skyrocketing, there are prices of up to $7.60 a gallon and climbing. Inflation and gas prices are about to get much worse for everyone, so hold on tight. Wouldn't be surprised if we saw gas climb to over $10 a gallon at this rate in some areas.
 

Hack

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They better be planning on making micro eletric cars like yesterday. The demand for large gas SUVs and trucks is going to decline greatly with 6-7 dollar a gallon gas.
If people really cared a lot about energy consumption and the environment, they would be buying smaller cars like you suggest. But it doesn't seem like most people care very much. They want a command seating position and lots of room - even if they are typically the only person in the vehicle.

I think most car companies also prefer to make more expensive vehicles if they can get away with it. Micro vehicles should be inexpensive, so probably they end up as last priority.

I wonder if gas will really get that high. Right now near me it's high 3s just under $4 per gallon, which is a lot, but still a long way from $6.
 

CANTWN4LSN

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Not in favor of high gas prices and it is stupid to cut oil and gas production but a little perspective helps. Price was 0.55/gal in 1973 during that oil crisis which accounting for inflation translates to about $3.50 today and factoring in 1.5-2x better mileage on even a mustang today (my GT350 gets 19.7) that means in terms of actual amount spent between $6 and $7 per gallon being equivalent to the 0.55 in 1973. Not saying its great and don't want to spend that much but its more the shock of the increase and adjustment of budget rather than the actual number. And yes we did change our driving habits in 1973 and so we will today until we change administrations.
 

BlackandBlue

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Quite the opposite is the case. The demand for bigger, faster and more luxurious cars is growing, at least in the EU and probably around the world as well. I think the US is somewhat special as they have ridiculously low gas prices and already large cars everywhere…

However, answering your question I would look at Fords investments and they stated that they’ll invest 1$ billion in Cologne and make every car zero emission capable comes 2026. Looking at the cars they build around here and looking at the competition – Ford Europe will most certainly come up with electric versions of the Fiesta, Puma, Focus, Kuga and the Mondeo. I would also argue that they’re going to build ST and RS derivatives of (some of) these cars.
People will always want something right until they can’t afford it. Inflation is absolutely ripping right now. Rates are going to climb to cut it back(reads slow economy), all the while gas prices climb. So higher energy prices and a slowing economy.

Electric is an awesome idea right up until the point people understand that energy prices don’t cheat. Energy is cheap in one area demand will increase and take prices along with it. You know this though just looking at your power prices
If people really cared a lot about energy consumption and the environment, they would be buying smaller cars like you suggest. But it doesn't seem like most people care very much. They want a command seating position and lots of room - even if they are typically the only person in the vehicle.

I think most car companies also prefer to make more expensive vehicles if they can get away with it. Micro vehicles should be inexpensive, so probably they end up as last priority.

I wonder if gas will really get that high. Right now near me it's high 3s just under $4 per gallon, which is a lot, but still a long way from $6.
Who knows where oil prices will go but higher for longer looks likely. They dropped back after the short squeeze but the world is in a deficit so demand destruction looks like the way forward. The fair prices will be found over the next 6 months.

The manufactures will produce whatever the market demands.
 

Rothgray

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It's a way for Ford to cut out the dealer and make a 10% margin, which today they are around 4-4.4%, and still get the car to the consumer at a lower price.
 

shogun32

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It's a way for Ford to cut out the dealer and make a 10% margin, which today they are around 4-4.4%, and still get the car to the consumer at a lower price.
There is WAAAAAYYY more than 4% margin to the factory. Dealer margin is 8-15% (vs MSRP) by my sleuthing. Since dealers are parasites and don't usefully contribute to Ford HQ bottom-line it would make sense for Ford to take back dealer margin in addition to reducing the cost of manufacture and sales. At bare minimum factory margin is 15-20% and should be closer to 30%. That they give away a big chunk to the dealers is just stupid.
 

Rothgray

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There is WAAAAAYYY more than 4% margin to the factory. Dealer margin is 8-15% (vs MSRP) by my sleuthing. Since dealers are parasites and don't usefully contribute to Ford HQ bottom-line it would make sense for Ford to take back dealer margin in addition to reducing the cost of manufacture and sales. At bare minimum factory margin is 15-20% and should be closer to 30%. That they give away a big chunk to the dealers is just stupid.
Have you ever been on a shareholder call? That is the figure that they state as their average margin. Their target is 10.
 

shogun32

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Have you ever been on a shareholder call? That is the figure that they state as their average margin. Their target is 10.
then they are doing something SERIOUSLY wrong. Or do you mean they're left with 4% after they give away 10-15% to the dealer? Either way, Ford is stupid. The dealer doesn't deserve more than 3%.
 

Rothgray

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then they are doing something SERIOUSLY wrong. Or do you mean they're left with 4% after they give away 10-15% to the dealer? Either way, Ford is stupid. The dealer doesn't deserve more than 3%.
Fords net profit margin is around 4% average. This is how much ford makes after a vehicle is produced and then sold to a dealer for their inventory.
You are correct when you assumed a dealer makes about 10-15% which includes the 3-3.5% hold back. What a dealer charges for a car, ford does not see that profit. Once it’s sold to the dealer that’s the end of the money flowing into ford.
 

 
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