Just got home from Bronco event...

CT_LFC

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May sales are out: Ford sales continue to suck!

Ford sales were up a paltry 3.6%. Toyota sales were up 46%; Toyota dealers have literally little sitting in inventory. Hyundai-Kia were up 50%; Mazda +51%; Honda +40%; Subaru +30%. FCA and GM don’t report monthly sales.

Ford has lost almost 2 whole points of market share in the first 5 months of this year. That is a lot. Ford is blaming chip shortages. However, chip shortages affect every automaker. I think there’s something not firing on all cylinders at Ford.
when was it that ford stopped selling cars and focused on suv’s? Wonder if that had a YoY impact.
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aldo98229

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when was it that ford stopped selling cars and focused on suv’s? Wonder if that had a YoY impact.
That was years ago; well before this whole chip shortage started.

Auto News says F-Series sales are 30% down; according to Ford it is due to chip shortages.

FCA is channeling all available chips towards its higher-margin products: Wrangler, Grand Cherokee, Gladiator and Ram trucks.

I have a hard time believing that Ford would be so inept as to leave the supply of parts to its bread-and-butter vehicle so vulnerable to disruption.
 

XJfanatic

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The chip shortage is an enormous factor. Ford has thousands upon thousands of complete F-150’s sitting around just waiting on chips.
Very true. Originally they were holding them near the plant. Hadn’t seen anything about them shipping with missing components but recently I saw a lot with what appeared to be over 100 f150s. This was definitely a dealer over flow lot.
 

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Aside from the global chip shortage, Ford has made their own share of mis-steps in their recent high profile product launches:

1. The recently released Bronco Sport already has three recalls dealing with the suspension system, control arms, driveshaft. Several press reviewers have also noted a potential overheating issue with the four wheel drive system.

2. Multiple quality issues with new Explorer, mostly from rushed 2020 production and new Chicago plant. Poor seats, wiring harness, software, wrong emblems/wheels, and other “complications”

3. Numerous early production 2021 F-150 were set aside, in need of further inspections, repairs and components. Some disagreement over number and severity of repairs between UAW (who are not doing the work) and Ford.

Given that recent track record, I’m super confident that they’ll pull off the the Bronco launch, whenever that happens. Super duper confident.
 

SecondTJ

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FCA is channeling all available chips towards its higher-margin products: Wrangler, Grand Cherokee, Gladiator and Ram trucks.
Even with Ram, they are dropping content from lower level trims and using allocation for top level trims.

Can’t get Blind Spot Monitoring on Laramie anymore but it’s still standard on the pricey Limited
 

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Lower sales does not seem phase F stock, as it is up 40% over last month and up 8% from a week ago.
People banking on high reservation numbers with Bronco and lightning. If F does not fumble those two, F sales will be way up by end of this year. Glad I bought whole bunch of F at $5 and stuck with it during paranoia.
 

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Even with Ram, they are dropping content from lower level trims and using allocation for top level trims.

Can’t get Blind Spot Monitoring on Laramie anymore but it’s still standard on the pricey Limited
Yes, that's going to drive customer loyalty:

"We realize there is limited stock, so we are going to make fewer vehicles and max out their options so if you have to buy a vehicle now it will be the most expensive version we can make."
 

twisty

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Yes, that's going to drive customer loyalty:

"We realize there is limited stock, so we are going to make fewer vehicles and max out their options so if you have to buy a vehicle now it will be the most expensive version we can make."
If one buys one it probably has little effect. I don't have a problem with companies making money, hope they do, just like I don't have a problem with the ballooning used truck market that many are enjoying.

If they are forcing consumers who HAVE to buy into more options at least they are getting something for their money. I think most know what's going on now and understand the deal.
 

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aldo98229

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This article on how Ford production and sales are getting pummeled by the chip shortage appeared today on Auto News.

Buyers and dealers stuck in microchip waiting game
Ford isn't the only company grappling with the shortage, but its dealers, customers and bottom line have been stung particularly hard.

June 07, 2021 12:00 AM 10 HOURS AGO
MICHAEL MARTINEZ

1623074299634.jpeg

Stallons: Waiting for Mustang ordered in March

DETROIT — In March, Malcolm Stallons ordered what he figured might be his last car: a 2021 Ford Mustang in Antimatter Blue with white side stripes.

As the May delivery date drew near, Stallons, 67, sold his 2018 Mustang to get ready.

But it's now June, and Stallons is still without the car. The production date for his Mustang has changed about five times, and Ford now says he won't get it for at least another month. The global semiconductor shortage has kept the Mustang assembly line down for all but two weeks since mid-April.

It's a headache customers across the country are facing as inventory keeps dwindling. For Stallons, it's an especially frustrating damper on what should be a celebratory purchase. After owning seven pony cars through the years — all purchased used — he decided to treat himself to his first new Mustang as an early retirement gift.

"I regret the decision to upgrade every day the weather is nice," Stallons, who lives in Lexington, Ky., told Automotive News. "At some point, all the fun and excitement will have faded, and I don't know what I'll think or do."

Ford Motor Co. isn't the only company grappling with the chip shortage, but its dealers, customers and bottom line have been stung particularly hard. May was the worst month for its F-Series pickups in more than nine years, with U.S. sales plunging 29 percent even from last year's pandemic-scarred volume.

Ford's overall sales rose 3.7 percent from a year earlier, but the automaker was outsold by Toyota Motor North America, American Honda and Hyundai-Kia. And Ford dealers don't expect June or July to be any easier, with few truckloads of new vehicles on the horizon.

Ford finished May with a 30-day supply of inventory, down from 35 days' worth in April and 77 a year earlier.
"Ford and its dealers are working harder than ever to match the right mix of inventory to best meet the needs of our customers at the local level," Andrew Frick, the company's vice president of U.S. and Canada sales, said in a statement.

The chip shortage has slashed more than 400,000 vehicles from Ford's planned production, according to AutoForecast Solutions, with F-Series pickups accounting for a third of that volume. Ford has been unable to build about 15,000 Mustangs, including Stallons'.

Running out of gas
Richard Bazzy, owner of Shults Ford-Lincoln group in Pittsburgh, said he had about 70 vehicles left at one of his four stores after record sales in May.

"It's almost like the Indy 500," he said. " 'We're only giving you enough fuel to win; you can't cruise afterward.' Now I'm pretty much out of gas."

Bazzy said he has been expecting tight inventory for months now — Ford has indicated dealers won't see meaningful new inventory until the third quarter — and has been able to generate money from other areas of the business, such as parts and service.

"It's managing the customers and their expectations more than anything," he said. "A lot of them are very upset that we can't deliver."

Other customers are more understanding and willing to pick a second or third choice, according to John Huselton, general manager of Bazzy's store in Wexford, Pa.

"They're basically saying, 'What can I get?' and not thinking about it very long because if they wait a couple days, that car might not be here," Huselton said. "It seems like they're a little more nervous they're not going to be able to get a car."

The crisis has taken an outsize toll on the Detroit 3, according to AutoForecast Solutions data. General Motors said last week that its financial outlook for the second quarter had improved and that it had found ways to more efficiently use its limited chip supplies, but executives acknowledged that the company is not yet out of the woods.

GM still can't say "unequivocally that the situation is getting better," CFO Paul Jacobson said at a Credit Suisse conference last week, describing the shortage as "fluid and volatile." The automaker said it was able to pull some chip deliveries forward from the third quarter and will be able to ship by early July 30,000 midsize pickups that initially had been built without chips.

Ford also has tens of thousands of vehicles that it built without chips sitting in parking lots around the country until enough of the missing pieces are available.

"We're looking into Q3 or Q4 before things turn around," said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast. "The fear is it could be longer."

Ford expects to resume production at the Mustang plant in Flat Rock, Mich., the week of June 14, but how it will prioritize orders remains to be seen.

Though Stallons is frustrated with Ford for not warning him about the potential for delays before he ordered his car and sold his old one, his loyalty to the brand hasn't wavered. He still remembers the moment, nearly 53 years ago, when was cutting the grass at his childhood home and spotted a 1968 maroon Mustang convertible on the corner of the block.

"That beautiful car stole my 14-year- old heart, and it is a love affair that continues to this day," he said.

While he waits, he has a 2020 Ford Escape to get around in and is eyeing a couple of used Mustang convertibles he might switch to if his production date is postponed further. But he's worried he would rue the decision to cancel that Antimatter Blue coupe with the white stripes.

"Lexington has 320,000 people," he said, "but I am certain that if I don't buy it, that the person who does will pass me every morning as I go to work."
 

west tex

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That was years ago; well before this whole chip shortage started.

Auto News says F-Series sales are 30% down; according to Ford it is due to chip shortages.

FCA is channeling all available chips towards its higher-margin products: Wrangler, Grand Cherokee, Gladiator and Ram trucks.

I have a hard time believing that Ford would be so inept as to leave the supply of parts to its bread-and-butter vehicle so vulnerable to disruption.
Having worked in American manufacturing, I can assure you that short sighted management and an obsession with "just in time" supply chains are dominant and this situation is the inevitable result. ;)
 

bigbaozi

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Lower sales does not seem phase F stock, as it is up 40% over last month and up 8% from a week ago.
People banking on high reservation numbers with Bronco and lightning. If F does not fumble those two, F sales will be way up by end of this year. Glad I bought whole bunch of F at $5 and stuck with it during paranoia.
Ditto, been a rough ride though. They have by far the best electrification strategy of the legacy American manufacturers. Stilleto could catch up, but the stuff they sell in Europe now would likely sell about as well as the Bolt does.
 

four low

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Having worked in American manufacturing, I can assure you that short sighted management and an obsession with "just in time" supply chains are dominant and this situation is the inevitable result. ;)
Especially when businesses are taxed on inventory. This common practice of sucking every bit of money has created the "Out of Parts, No Time Frame available for re- Supply" debacle. Another example of " We have Met the Enemy, and he is US"
 

CT_LFC

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Having worked in American manufacturing, I can assure you that short sighted management and an obsession with "just in time" supply chains are dominant and this situation is the inevitable result. ;)
Agree, as i have been in US manufacturing industry for over a decade, but it's not just the US though. This "JIT" inventory is modeled after Toyota/Japan and i imagine other countries use it as well since inventory = cash sitting on shelves.
 
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