Launching their flagship truck, F-150, around X-mas time? How stupid. It never ceases to stun me (in the corporate world) how ignorant/ill timed their decisions can be.
I don't think ignorance is to blame.... its simple economics. Why launch a brand new widget, when you still have way too many old style widgets on hand? You have to move out the old, before bringing in the new.
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I don't think ignorance is to blame.... its simple economics. Why launch a brand new widget, when you still have way too many old style widgets on hand? You have to move out the old, before bringing in the new.
Based on their history (since 1997) of running new and old models concurrently, I'd have to think there is more to these delays than just inventory numbers. It's even more dubious considering how, based on pre-release reports, the '09 isn't much of a "new" model.
I always read the production/inventory data when they offer this free one week stuff. I see the truck production numbers way down from last year which is understandable. Also the F-series has reduced its days to sale from 133 to 107. With about 75 being the norm. Still, Ford has over 184K units unsold. HOW are they going to move these vehicles? With employee discounts, cash discounts and loyalty discounts what else can one do to rid the lots of these high inventories?
I always read the production/inventory data when they offer this free one week stuff. I see the truck production numbers way down from last year which is understandable. Also the F-series has reduced its days to sale from 133 to 107. With about 75 being the norm. Still, Ford has over 184K units unsold. HOW are they going to move these vehicles? With employee discounts, cash discounts and loyalty discounts what else can one do to rid the lots of these high inventories?
That's a good question.
Maybe they can do what a local Dodge dealer here in town is doing...and mark down '08 RAM trucks by 50%. Plus...free tires for life of the vehicle and instead of the $2.99/gallon Dodge is offering...they dropped that to $1.99/gallon. Heck...they made the Wall Street Journal in an article about over stocked truck inventories.
If FORD does something similar...they might move those inventories.
Perhaps that would work. I think it depends on what GM offers up after their $5K rebates lapse on Sept. 2. The Silverado line has a 122 days supply and the Sierra even worst, 131. This really is becoming an epidemic for the auto makers. Because the HIGHER the rebates the MORE 08' vehicles they'll sell but at the expense of the 09's. Something Ford/Chrysler don't want to think about now. For they've spent big bucks getting out their new 09' models. I see where Chrysler has already built 900 new 09's. But the 08' Ram has a 111 days supply.
IMO...a lot of '08 F150 and RAM 1500 trucks because lots of folks are waiting to purchase the "latest and greatest". I cannot see spending all that cash on an '08 and then have the '09 come out and be something I should have waited for.
The last thing anybody is gonna buy around X-Mas time is a PickUp Truck!......
I always do! I've found the best time to shop is end of year and get the discounts on the outgoing MY. Did this on my '06 F150 (12/02/06), same with my '02 F150 (12/23/02) and '99 Ranger (01/29/00).
__________________ Justin
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