Retained Customers When Ford Cars Are Gone.You're still not getting it. You can't make business decisions based on what some buyers want. You have to make the business decision based on what's best for the company. If you lose 2 Fusion customers paying $25K with a 2% profit margin but gain a Bronco customer paying $40k with a 10% profit margin, who wins? And I guarantee the Bronco customer will be more loyal just like f150 and Ranger and mustang buyers. A lot of those car sales were based on lowest price which accounts for all the SE sales with $4k - $5K Rebates. When they replace the vehicle they'll get whatever is on sale at the moment. Given all the competition from Hyundai and Kia and the Japanese brands in that space it's very low profit potential and lots of churn even with the best products.
Think of it this way. If you owned a business and had the capacity to sell 1k widgets a year would you sell widgets with a 3% profit margin or ones with a 10% profit margin - given an equal choice?
What if Ranger, Bronco, Bronco Sport, Maverick and all the BEVs end up increasing market share and prodding more revenue and more profits? I think that's highly likely.
And don't forget that once the factories are converted to C2 Ford will be able to add some cars back to the mix if it makes sense and they have the capacity.Mon, 06 Jul 2020 14:18:27 +0000
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