Ford losses a Mustang a minute? - Pontiac GTO Forum
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post #1 of 11 (permalink) Old 01-25-2007, 02:39 PM Thread Starter
 
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Ford losses a Mustang a minute?

This caught my eye. Worst losses in 103 yrs? That's not good!

http://articles.moneycentral.msn.com....aspx?GT1=8995

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post #2 of 11 (permalink) Old 01-25-2007, 02:56 PM
 
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And it's not going to get any better. All the Lincoln Mercury dealerships around here in Northern California are either closing or about to.

Meanwhile, you should see the huge Lexus and BMW dealerships being built.

I don't what it is about California, but everybody has to have an imported car. You can't tell me it's product -- because cars like the Ford Five Hundred and Freestyle are every bit as good as their Toyota and Honda counterparts -- but you never see them.
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post #3 of 11 (permalink) Old 01-25-2007, 03:20 PM
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Mark up's are killing ford too. Dealers tacking on 10K+ for the Mustangs..... 20K+ for Shelbys. Yea there are those willing to pay a ransom to take delivery of their precious Ford's but there are a ton many more who are saying screw you I ain't paying your mark up. I haven't priced Ford's but if this is standard practice to bleed as much green blood from their customers on these 2 car's, it only leads you to think they are doing it to other models, let them suffer.

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post #4 of 11 (permalink) Old 01-25-2007, 04:25 PM
 
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And it's not going to get any better. All the Lincoln Mercury dealerships around here in Northern California are either closing or about to.

Meanwhile, you should see the huge Lexus and BMW dealerships being built.

I don't what it is about California, but everybody has to have an imported car. You can't tell me it's product -- because cars like the Ford Five Hundred and Freestyle are every bit as good as their Toyota and Honda counterparts -- but you never see them.
I've actually considered the Lincoln MKZ (formerly Zephyr). They are a great car.

When I moved to San Luis Obispo, I went to the Chevy dealer to get my cars Smog checked and certified to come into California. This dealer was a Chevrolet, VW and Mercedes Benz dealer. I was amazed. They had tons of Chevy trucks. They actually had more C230's than they had total Chevy cars though. They only had 2 Cavaliers on the lot which was a big seller in Pennsylvania. I asked why they only had 2 Cavaliers, thinking it was a shipping problem since they are made in Ohio. They told me Chevrolet requires them to take 2 Cavaliers a month to remain a Chevrolet franchise. They took them so they could get Chevy trucks which sold like hotcakes. They would sell off the Cavaliers at a loss just to move them.

Sure enough when I opened the Sunday paper, they had on of their Cavaliers advertised. It was a Cavalier Value model that stickered at $10,700. Invoice was $10,135. There was a $1000 rebate on it and they had it listed at $7995 for a brand new 2004 Cavalier. They were losing $1200 per car.

The Mercedes C230 all had additional dealer stickers on them though for 3-5,000 in dealer mark-up. I just couldn't understand how someone could pay $40,000 for a C230. Then you would see a 10 year old Honda Accord for $7-8000 and it just made me wonder how someone could be so stupid to pay $8,000 for an Accord with 135,000 miles on it instead of $8,000 for a new Cavalier.

You hear about the proposal to ban a parent from spanking their kids in California. You look at all the flakes in San Fran and see all the silly stuff that happens there. It kinda makes you forget there is the Central valley with normal people and think the whole state is wacko.
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post #5 of 11 (permalink) Old 01-25-2007, 07:39 PM
 
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I've actually considered the Lincoln MKZ (formerly Zephyr). They are a great car.

When I moved to San Luis Obispo, I went to the Chevy dealer to get my cars Smog checked and certified to come into California. This dealer was a Chevrolet, VW and Mercedes Benz dealer. I was amazed. They had tons of Chevy trucks. They actually had more C230's than they had total Chevy cars though. They only had 2 Cavaliers on the lot which was a big seller in Pennsylvania. I asked why they only had 2 Cavaliers, thinking it was a shipping problem since they are made in Ohio. They told me Chevrolet requires them to take 2 Cavaliers a month to remain a Chevrolet franchise. They took them so they could get Chevy trucks which sold like hotcakes. They would sell off the Cavaliers at a loss just to move them.

Sure enough when I opened the Sunday paper, they had on of their Cavaliers advertised. It was a Cavalier Value model that stickered at $10,700. Invoice was $10,135. There was a $1000 rebate on it and they had it listed at $7995 for a brand new 2004 Cavalier. They were losing $1200 per car.

The Mercedes C230 all had additional dealer stickers on them though for 3-5,000 in dealer mark-up. I just couldn't understand how someone could pay $40,000 for a C230. Then you would see a 10 year old Honda Accord for $7-8000 and it just made me wonder how someone could be so stupid to pay $8,000 for an Accord with 135,000 miles on it instead of $8,000 for a new Cavalier.

You hear about the proposal to ban a parent from spanking their kids in California. You look at all the flakes in San Fran and see all the silly stuff that happens there. It kinda makes you forget there is the Central valley with normal people and think the whole state is wacko.
Great Post. I worked at that dealer when I was in College. It is a good store. Margins in the low end stuff is crazy small. We made a lot more money in used cars, parts and service.

And yes, there are some normal folks living in the valley, and although it shows my political bent, most of us live in the very conservative county of Kern.
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post #6 of 11 (permalink) Old 01-25-2007, 08:48 PM
 
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The fact is that the majority of people know very little about cars, nor do they care to learn. They want a reliable source of transportation for whatever reason. When the word starts getting out that American car companies are unreliable, it kills sales. When someone purchases a honda, a good percentage of they time they are buying the Honda name. They figure because they own a honda, it will last them for a very long time.
When a company such as Ford marks up their cars, or GM has AWFUL service it further drives the American car name into the ground.

In my opinion, these companies just need to weed out the creeps and criminals. The quality is and has always been in their products, they just need to refresh peoples memories on why American car companies have lead sales for so many years. Only the American people can bring money back to the American car market.
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post #7 of 11 (permalink) Old 01-26-2007, 10:09 AM
 
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Acutally, most of you probably know that "Chevy" is the number one auto seller in CHINA yeah CHINA can you believe it!!!. As much as I hate FORD due to me being a GM guy all my life its a sad day for America to see Ford and GM in this type of trouble. Lord knows if one of them files for bankruptcy this countrys economy will take a downward spiral like no other before.
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post #8 of 11 (permalink) Old 01-26-2007, 11:30 AM
 
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The San Jose Mercury News big auto section is in the Friday paper. Some of the stuff that was being advertised:

-- Ford Five Hundreds stickering for $25K+ are being sold for $17,995.

-- Lincoln LT pickups? I think they sticker for between $45K and $50K -- $25,995.

-- Even Mustang GTs are being sold for $22,995...
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post #9 of 11 (permalink) Old 01-26-2007, 11:47 AM
 
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Yeah I'm not saying all these dealers are criminals, but there are enough around. And when a dealer needs to get rid of cars they have to mark down prices. They're not selling ANY cars, yeah they will mark down prices. Or just bait and switch you...
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post #10 of 11 (permalink) Old 01-26-2007, 08:50 PM
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Wow Ford is selling Mustang GT's for 22,995?..... That's pretty close to what they were supposed to sell them for originally. If I am not mistaking I believe sticker for them was supposed to be about 25 K in 2005 new.

Ford is struggling, so they lower the price to sticker (or close to it) to move em.... Smart thinking Ford!

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