Ford understimates its own marketplace
Nov. 2nd, 2021 05:04 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
altivoThis is something I never would have expected, but it really happened this year. I wish my Dad were still around to comment on it. (He worked for GM, actually, which would have made it entertaining.)
Some are undoubtedly aware that Ford introduced a completely new model this year (2022, since automobile/truck model years generally run six months ahead or so.) That would be the Maverick.
What? Wait, didn't they market the Maverick some 40 years ago or more? Yeah, but that was something else. They apparently have run out of names and trademarks and are recycling some that were long retired. This Maverick is a compact pick-up truck. No kidding.
Aside from not coming up with a new name, the idea seemed viable. Trucks seem to grow in size even faster than luxury SUVs. The ones that used to be single row seating utility vehicles 20 years ago have grown into super cab-crew monster trucks with huge gas guzzling engines and tires that at least seem as big as the ones that used to be on my uncle's farm tractor when I was a kid.
According to some sources, the idea was to market a less expensive truck with available off-road features and better fuel economy that might (they hoped) appeal to a younger audience who care about climate change, pollution, and (not to mention) expenses. So...
The new 2022 Maverick was born. The base model has a fuel efficient hybrid power train to help Ford with those overall figures needed to meet Federal standards, and has a price (before adding any extras) to be under $20K. Unbelievable. But they did it, came up with the designs in part by recycling ideas and parts they had already used in other models. The unibody design is based on a Bronco design. The power train (IC engine and electric motors) had already been used in the Escape, etc. They promoted this idea well, opened up a queue for "reservations" that lead to actual firm orders, and the circus train was on the road.
Their mistakes were big, though. They clearly underestimated the popularity of the idea, and were quickly swamped with orders. They also seem to have expected that most customers would opt for the EcoBoost turbocharged engine rather than the hybrid (at about $1200 more in cost) since everyone knows that truck buyers like the biggest, noisiest engines they can get. They planned to produce only 30 to 35% hybrids and the rest would have the EcoBoost engine. Production was scheduled for the plant in Hermosillo, Mexico, which has handled the Escape, the Bronco, and the Ranger pick-up in the past (and still does.)
Surprise, though. The orders that poured in ran more like 70% for the less expensive, more efficient hybrid engine. The buyers were often first-time truck buyers, but also older than the expected market slice. These were people who actually cared about pollution, climate change, and waste, who had been waiting for an affordable hybrid or electric vehicle.
Ford's supply chains for some of the hybrid parts, like the larger batteries needed, were not up to meeting the demands. Hybrid production (when it started at last) was a trickle while the plant kept cranking out EcoBoost version vehicles to meet orders only a couple of weeks old and hybrid buyers were kept waiting for months. Only now, in November, is Ford starting to move along to actually fulfill its promises to those who placed orders; and they find themselves forced to apologize for their misjudgments and poor projections.
There are good lessons here, though. Firstly, whether politicians and plutocrats admit it or not, more people do feel concern about climate change and fossil fuel consumption than expected. Vehicle buyers are not impressed only by big roaring engines and sleek designs. And, most importantly, if you announce a better mousetrap, you'd better be prepared to deliver it on the schedule you promise or you'll end up looking like a foolish skunk with stolen eggshells stuck to its face.
Edit: I should have mentioned this. The EPA fuel economy numbers for the Maverick hybrid, when they came out, were 42 mpg city driving, 33 mpg highway, and 37 mpg combined. That only increased the demand, of course. Conservative drivers like myself often can get two or three more miles per gallon than the EPA tests show, too.
Some are undoubtedly aware that Ford introduced a completely new model this year (2022, since automobile/truck model years generally run six months ahead or so.) That would be the Maverick.
What? Wait, didn't they market the Maverick some 40 years ago or more? Yeah, but that was something else. They apparently have run out of names and trademarks and are recycling some that were long retired. This Maverick is a compact pick-up truck. No kidding.
Aside from not coming up with a new name, the idea seemed viable. Trucks seem to grow in size even faster than luxury SUVs. The ones that used to be single row seating utility vehicles 20 years ago have grown into super cab-crew monster trucks with huge gas guzzling engines and tires that at least seem as big as the ones that used to be on my uncle's farm tractor when I was a kid.
According to some sources, the idea was to market a less expensive truck with available off-road features and better fuel economy that might (they hoped) appeal to a younger audience who care about climate change, pollution, and (not to mention) expenses. So...
The new 2022 Maverick was born. The base model has a fuel efficient hybrid power train to help Ford with those overall figures needed to meet Federal standards, and has a price (before adding any extras) to be under $20K. Unbelievable. But they did it, came up with the designs in part by recycling ideas and parts they had already used in other models. The unibody design is based on a Bronco design. The power train (IC engine and electric motors) had already been used in the Escape, etc. They promoted this idea well, opened up a queue for "reservations" that lead to actual firm orders, and the circus train was on the road.
Their mistakes were big, though. They clearly underestimated the popularity of the idea, and were quickly swamped with orders. They also seem to have expected that most customers would opt for the EcoBoost turbocharged engine rather than the hybrid (at about $1200 more in cost) since everyone knows that truck buyers like the biggest, noisiest engines they can get. They planned to produce only 30 to 35% hybrids and the rest would have the EcoBoost engine. Production was scheduled for the plant in Hermosillo, Mexico, which has handled the Escape, the Bronco, and the Ranger pick-up in the past (and still does.)
Surprise, though. The orders that poured in ran more like 70% for the less expensive, more efficient hybrid engine. The buyers were often first-time truck buyers, but also older than the expected market slice. These were people who actually cared about pollution, climate change, and waste, who had been waiting for an affordable hybrid or electric vehicle.
Ford's supply chains for some of the hybrid parts, like the larger batteries needed, were not up to meeting the demands. Hybrid production (when it started at last) was a trickle while the plant kept cranking out EcoBoost version vehicles to meet orders only a couple of weeks old and hybrid buyers were kept waiting for months. Only now, in November, is Ford starting to move along to actually fulfill its promises to those who placed orders; and they find themselves forced to apologize for their misjudgments and poor projections.
There are good lessons here, though. Firstly, whether politicians and plutocrats admit it or not, more people do feel concern about climate change and fossil fuel consumption than expected. Vehicle buyers are not impressed only by big roaring engines and sleek designs. And, most importantly, if you announce a better mousetrap, you'd better be prepared to deliver it on the schedule you promise or you'll end up looking like a foolish skunk with stolen eggshells stuck to its face.
Edit: I should have mentioned this. The EPA fuel economy numbers for the Maverick hybrid, when they came out, were 42 mpg city driving, 33 mpg highway, and 37 mpg combined. That only increased the demand, of course. Conservative drivers like myself often can get two or three more miles per gallon than the EPA tests show, too.
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