Apparently people WILL pay $40k for a Taurus...

Started by ChrisV, December 22, 2009, 06:08:42 AM

ChrisV

So much so that they are only buying the high end models and leaving the low price versions sitting on dealer lots. Unfortunately, Ford was apparently listening to "enthusiasts" on websites that said "no one will pay that much for a Ford" and made way more of the lower priced versions...


QuoteThe all-new Ford Taurus was designed to be a sales success for the Blue Oval ? replace the four-door sedan of the same name that never caught on with consumers ? but a flawed product mix is preventing any big sales numbers.

Ford expected most 2010 Taurus buyers to go for the SE or Limited trim levels, but has experienced a higher-than-expected demand for SEL and SHO models. Ford?s production schedule was skewed towards the less popular model, leaving more of the less desirable Taurus models sitting on dealers? lots.

?It?s a problem for our dealers,? Jim Farley, Ford?s group vice president of global marketing, told Automotive News.

?If you don?t call it, you miss that opportunity and customers don?t see what they want to buy,? Farley said of the Taurus? current product mix.

Through November, Ford has sold 38,361 Taurus sedans, down 22 percent from the same period in 2008 which was one of the worst for new car sales on record. The Taurus went on sale in August.

Ford is working to correct the problem, but the improved market mix is likely still months from arriving at dealers. Ford says it is taking advanced steps to better align market demand with the correct mix of models and trim levels and has already begun forecasting the right mix of Ford Fiesta models. The Fiesta is slated to hit the market next summer.

Considering how many people were saying no one would spend $40k on a mere Ford, it's not surprising that the mix is what it was. And those of us who were saying that people would have no problem paying $40k for a Ford if the car was the right are are not surprised that they are running out of the high end versions, either...
Like a fine Detroit wine, this vehicle has aged to budgetary perfection...

saxonyron

I would never have guessed it.  Considering 99% of Taurus buyers in the past seem to be the classic "Unthusiast", plus the economy hasn't climbed back much from rock bottom, I would have bet my lunch money that the lower end Tauri would be the big sellers.  Still, a nice problem for Ford to have - they're top end car is too popular.  Most automakers would love to have a problem like that.  Even though they missed the initial sales surge, I'm guessing Ford will still be able to cash in on this in the next few months, so all is not lost. 



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dazzleman

Quote from: saxonyron on December 22, 2009, 06:21:33 AM
I would never have guessed it.  Considering 99% of Taurus buyers in the past seem to be the classic "Unthusiast", plus the economy hasn't climbed back much from rock bottom, I would have bet my lunch money that the lower end Tauri would be the big sellers.  Still, a nice problem for Ford to have - they're top end car is too popular.  Most automakers would love to have a problem like that.  Even though they missed the initial sales surge, I'm guessing Ford will still be able to cash in on this in the next few months, so all is not lost. 

Plus the fact that a car is 'hard to get' sometimes only makes it more popular, and allows them to increase profit margins on it.  It's a problem the US manufacturers haven't had for quite some time.
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ifcar

Probably just a backlog of interest, nothing sustainable.

And it's the midlevel that's their popular volume model -- the article says they were expecting more volume out of the line-topping Limited.

2o6

Despite it's flaws, I think the Taurus is a great car. Good job, Ford.

FoMoJo

The dealers I've been at have a candy-apple red Taurus SHO in the showroom.  People drool over them and it spoils them for a lesser model.
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ChrisV

#6
Quote from: ifcar on December 22, 2009, 06:42:20 AM
Probably just a backlog of interest, nothing sustainable.

And it's the midlevel that's their popular volume model -- the article says they were expecting more volume out of the line-topping Limited.

The SEL is priced at $30,995 well equipped on the lots. At that price, the one I drove is a great car and it's no wonder that people want it. I haven't seen a Limited on teh lots yet. And the SHO is backlogged. I've seen them on the road, but not at a dealer yet.

Also the article says that through November, the Taurus was down 22% in overall sales than at the same point in 2008, but the new model has only been on sale since august, while at the same point in '08, the then current model had been available all year. So it's not really comparing apples to apples.
Like a fine Detroit wine, this vehicle has aged to budgetary perfection...

ifcar

Quote from: ChrisV on December 22, 2009, 08:14:42 AM
The SEL is priced at $30,995 well equipped on the lots. At that price, the one I drove is a great car and it's no wonder that people want it. I haven't seen a Limited on teh lots yet. And the SHO is backlogged. I've seen them on the road, but not at a dealer yet.


Both times I was at a dealer, they were sold out of everything but the SHO and Limited -- those are the two I've driven.

cawimmer430

People are also willing to pay $50k for a Toyota.  :devil:


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565

Sounds like excuses for dismal sales of a brand new model.  Even if they did have more SHO's and SEL's, I doubt it can account for a 22% nosedive compared to the uninspired previous model, and just when everyone else's sales are picking up  I notice they didn't mention anything about how many more actual sales could have been made with more SHOs and SELs.  So basically even though now the market situation is much better than 1 year ago, and even though the Taurus was newly redesigned, sales still plummeted when they should have been shooting up.  Sounds like consumers realized that buying a full size sedan that was actually a mid size sedan on the inside didn't make sense.  

ChrisV

Quote from: 565 on December 22, 2009, 09:28:48 AM
Sounds like excuses for dismal sales of a brand new model.  Even if they did have more SHO's and SEL's, I doubt it can account for a 22% nosedive compared to the uninspired previous model,

I covered that. 22% less for the year, even though this model has only been on sale since August and the previous year's model had been on sale all year at that point. Kind of misleading in the article.

Quoteand just when everyone else's sales are picking up  I notice they didn't mention anything about how many more actual sales could have been made with more SHOs and SELs.


Doesn't matter, They know they could ahve sold way more uplevel cars, as the ones they have can't meet demand. That's the counter to "no one will buy an expensive Ford."
Like a fine Detroit wine, this vehicle has aged to budgetary perfection...

SVT666

Quote from: 565 on December 22, 2009, 09:28:48 AM
Sounds like excuses for dismal sales of a brand new model.  Even if they did have more SHO's and SEL's, I doubt it can account for a 22% nosedive compared to the uninspired previous model, and just when everyone else's sales are picking up  I notice they didn't mention anything about how many more actual sales could have been made with more SHOs and SELs.  So basically even though now the market situation is much better than 1 year ago, and even though the Taurus was newly redesigned, sales still plummeted when they should have been shooting up.  Sounds like consumers realized that buying a full size sedan that was actually a mid size sedan on the inside didn't make sense.  
The new Taurus has only been available since August.  Last year's vanilla Taurus was what was on the lots until then.  That by itself probably accounts for the drop in sales.

Nethead

#12
It is difficult to comprehend this upside-down-cake phenomenom.  Pent-up demand has gotta be part of it, and the "poor-man's-CTS-V" has gotta be part of it, but it's puzzling nonetheless. :huh:  

The sales of the SHO are not puzzling at all:  EcoBoost V6. EcoBoost V6. EcoBoost V6....yada yada yada.  Likely perceived as "Excellence Without Excess", a highly desirable perception in this day and age.

The Nethead here believes that the sub-SHO models of the Taurus are also benefitting from the 3.5L V6's excellence as well as a bit of halo from the SHO, although who woulda thought there would be that kinda market for a car as big as a Taurus? :huh:  Someone should check to see if these people also own a Fusion, Focus, Mustang V6, or Miata and plan to yank the engines outta those Taurii and drop 'em into their other vehicles... :popcorn:

That being said, I can't see the Taurus having a long future--too big, too heavy, and too much vehicle for its usable volume--like the Camaro, the Challenger, even the Ram Megacab, and other oversized whales in their classes.  Reckoning will come in the marketplace--and when it does the outsized will take the mortal hits first, much like the biggest targets on the battlefield...
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r0tor

something similar happened to mazda with the launch of the 6 in 2003...

everyone saw the zoomy 6 with the sport package bodykit and a 5 speed manual and when they got to the dealers all they had were non sport 4 banger automatics.  It got bad enough that Mazda started supplying rear wings to the dealers to stick on the base model cars as a "special appearence package" to try and get them to sell.
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GoCougs

#14
Quote from: 565 on December 22, 2009, 09:28:48 AM
Sounds like excuses for dismal sales of a brand new model.  Even if they did have more SHO's and SEL's, I doubt it can account for a 22% nosedive compared to the uninspired previous model, and just when everyone else's sales are picking up  I notice they didn't mention anything about how many more actual sales could have been made with more SHOs and SELs.  So basically even though now the market situation is much better than 1 year ago, and even though the Taurus was newly redesigned, sales still plummeted when they should have been shooting up.  Sounds like consumers realized that buying a full size sedan that was actually a mid size sedan on the inside didn't make sense.  

Excuses is what I kinda see, too, especially bolstered by the fact there are no hard numbers given.

It's an okay car, and the SHO is a looker in person, but too much utility was sacrificed for styling and the marque has moved too far upmarket to be the mega volume seller of old (and perhaps Ford's plan?).




SVT666

Quote from: GoCougs on December 22, 2009, 11:01:11 AM
Excuses is what I kinda see, too, especially bolstered by the fact there are no hard numbers given.

It's an okay car, and the SHO is a looker in person, but too much utility was sacrificed for styling and the marque has moved too far upmarket to be the mega volume seller of old (and perhaps Ford's plan?).


You're a Ford hater so I was expecting this from you.  The new Taurus has only been on sale for 5 months.  That and the recession account for the sales slump.

In case you people haven't noticed, people like style despite the lack of utility.  Sales of several cars prove it.

GoCougs

Quote from: HEMI666 on December 22, 2009, 11:15:03 AM
You're a Ford hater so I was expecting this from you.  The new Taurus has only been on sale for 5 months.  That and the recession account for the sales slump.

In case you people haven't noticed, people like style despite the lack of utility.  Sales of several cars prove it.

The new Taurus has had mediocre success; it's not the abject sales disaster of the Flex or the sales implosion of the Mustang, but a disappointment nonetheless.

There is no "hate" in reminding people of facts.

ChrisV

What it really seems like is that people don't want a base version when you can get a fully equipped Fusion for the same price, or step up only a couple grand to the well equipped SEL model. And they see the $35k Limited version that's barely better equipped than the SEL and figure they might as well step up a couple grand to the serious SHO version.

So far, other general automotive forums I'm on are seing this as a good thing for Ford, overall, and predicting that it bodes well for the upmarket move of the Fiesta when it arrives.
Like a fine Detroit wine, this vehicle has aged to budgetary perfection...

SVT666

Quote from: GoCougs on December 22, 2009, 11:21:33 AM
The new Taurus has had mediocre success; it's not the abject sales disaster of the Flex or the sales implosion of the Mustang, but a disappointment nonetheless.

There is no "hate" in reminding people of facts.
The "facts" are that the car is only 5 months old.  They were still selling the old lame duck Taurus for the first 7 months.  The styling of the Flex is polarizing, but sales are improving, and the Mustang sales implosion has been due to the new engines being available in the spring, the recession, and the release of the Camaro.  If you don't think those things had an impact, then I'm sorry, you're a hater.

GoCougs


sportyaccordy

I still don't understand the Taurus... especially the non-SHO

SVT666

Quote from: sportyaccordy on December 22, 2009, 12:46:42 PM
I still don't understand the Taurus... especially the non-SHO
What is there to understand?  It's a stylish, luxurious, and very comfortable mainstream sedan.  Personally I would rather have a Fusion, but I completely understand why someone would buy a Taurus.

ChrisV

Quote from: GoCougs on December 22, 2009, 11:44:52 AM
Sigh - another Pro-Ford jihad fail...

Or, in your case, another blitz of ignorance. Nice to see you keep up your spotless record.  :ohyeah:
Like a fine Detroit wine, this vehicle has aged to budgetary perfection...

GoCougs

Quote from: ChrisV on December 22, 2009, 12:56:10 PM
Or, in your case, another blitz of ignorance. Nice to see you keep up your spotless record.  :ohyeah:

Ford moved the car upscale and sacrificed utility. This explains the sales problems far more realistically than OMG PEOPLEZ ONLY WANT PIMPD TAURSES!!!


Raza

Quote from: HEMI666 on December 22, 2009, 12:51:07 PM
What is there to understand?  It's a stylish, luxurious, and very comfortable mainstream sedan.  Personally I would rather have a Fusion, but I completely understand why someone would buy a Taurus.

I've noticed this problem before. 
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TurboDan

I haven't driven a Ford in years, but... They finally figured out how to design the interior of a motorcar. I give them props for that right from the start. The last Ford I drove was a ridiculously loaded (and presumably ridiculously expensive) Explorer that, for all of its fanciness, still had tasteless gaps in the dash panels and cheap plastic.

This car looks rather nice, but I wish they picked a name other than "Taurus," which (for me) just brings memories of the bug-eyed model from the late 90s which for some reason seemed to come only in the worst colors known to man.

TurboDan

Quote from: HEMI666 on December 22, 2009, 12:51:07 PM
What is there to understand?  It's a stylish, luxurious, and very comfortable mainstream sedan.  Personally I would rather have a Fusion, but I completely understand why someone would buy a Taurus.

I could understand why someone would want a Fusion, but completely understand why they'd want to pay $1K more for a Mustang.  :evildude:

AutobahnSHO

Quote from: TurboDan on December 22, 2009, 04:01:30 PM
This car looks rather nice, but I wish they picked a name other than "Taurus," which (for me) just brings memories of the bug-eyed model from the late 90s which for some reason seemed to come only in the worst colors known to man.

The Taurus was THE BEST SELLING SEDAN from almost its release through the mid-90s (when the Camry took over.) The bug-eyed model is the car we have to thank for plastic headlights- before that the US DOT wouldn't allow anything but sealed glass bulbs. Ford pushed and pushed, and the result is a major jump in technology/design.

The Taurus was a fairly cheap, fairly LOADED (for the money paid,) car. Not all cars then came with standard airbags, a/c, etc...

Don't get me started on the SHO model= sticker starting at $20k. Fastest FWD car on the planet. 3rd fastest 4door in the world, behind the $70k 7-series and the $50k BMW M5. Equipped and better performance than the Audis, Saabs, GMs, etc....

------------------------------------------------------------------------
Ford COULD HAVE done something crazy awesome with the 'rebirth' of the Taurus- but it looks like sales will just be ok..
Will

SVT_Power

I noticed a lot of SVT owners on the contour board are trading in their SVT's for new SHO's. The feedback from owners seem to be pretty good.  :huh:
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SVT666

Quote from: SVT_Power on December 22, 2009, 07:28:05 PM
I noticed a lot of SVT owners on the contour board are trading in their SVT's for new SHO's. The feedback from owners seem to be pretty good.  :huh:
Really?  I'm kind of surprised by that.  SVT's claim to fame is the nimble handling their cars get besides the power jump.  The SHO handles very well, especially for such a big car, but it's got nothing on the SVT cars.