Ford wants to reduce number of Explorers

[BMWDave]

Ford wants to reduce number of Explorers on hand as it prepares for launch of updated model
AMY WILSON | Automotive News
Posted Date: 6/23/05
DETROIT -- Ford Motor Co. has too many Ford Explorer SUVs on its hands as it gets ready for the launch of an updated model.

Explorer sales are down 25.2 percent this year. The automaker wants to avoid a glut of old models when the re-engineered 2006 model goes on sale in September.

Ford increased rebates on the SUVs to $5,000 this month to reduce inventories and combat employee-discount pricing by General Motors.

"I told the dealers the No. 1 priority is selling down the '05 Explorer," Ford Division President Darryl Hazel said.

More production downtime is planned leading up to the traditional summer shutdown at the plants producing the Explorer and its sister vehicle, the Mercury Mountaineer.

As of June 1, Ford had 78,300 Explorers, or a 96-day supply, in stock. The automaker wants to trim that to around 45,000 units by July 31, said George Pipas, Ford's sales analysis and reporting manager.

"Then I would say we have a good chance of having a more stable production schedule running at St. Louis and Louisville," Pipas said. "Downtime will be less onerous than in the first half of the year."

Those two Explorer plants have been shut down for a combined six weeks this year to reduce inventories. The Louisville plant will have one more down week before its two-week summer shutdown starts next month, Pipas said.

The St. Louis plant was reduced to one shift at the end of 2004. It will have three additional down weeks before its summer shutdown starts at the beginning of August, he said.

Both plants will emerge from the annual shutdowns producing the 2006 model.

The 2006 Explorer will have minor exterior styling revisions, an upgraded interior, a six-speed automatic transmission and an updated 4.6-liter V-8 engine. A new ad campaign will begin in the fall.

Explorer sales have been trending down since 1999. Sales of the SUV, which debuted in 1991, peaked at 507,091 that year; sales totaled 339,333 in 2004, down 9.1 percent from 2003.

"When it comes to the new Explorer, we're optimistic about how that product will be received," Pipas said. "But we don't have any illusions that we're going back to the days of selling 400,000."

Ford pursues Hertz IPO

Ford Motor Co. wants to cash out of its Hertz Corp. rental car subsidiary.

Ford last week filed papers with the U.S. Securities and Exchange Commission seeking an initial public offering, saying "shareholders want us to unlock trapped value."

Merrill Lynch analyst John Casesa said in a report that the Hertz divestiture could reap proceeds of as much as $6 billion.

[ifcar]

$5,000 rebates plus an easy-to-get employee discount? If anyone wants an Explorer, now is definitely the time to get it.

[BMWDave]

$5,000 rebates plus an easy-to-get employee discount? If anyone wants an Explorer, now is definitely the time to get it.

Yea.  But this will make (perceived) resale value go down even more.

[TBR]

I wonder if my Dad would be interested in driving an Explorer as a daily driver (the Durango is getting old and the F-250 isn't comfortable and gets crappy mileage)... Will the same deal be offered on the Sport Trac?

[BMWDave]

I wonder if my Dad would be interested in driving an Explorer as his fuel efficent vehicle... Will the same deal be offered on the Sport Trac?

I dont know....maybe when the new Sport Trac comes out they will be offering rebates like these.  And thats the first time someone has called an Explorer a fuel efficient vehicle  

[ifcar]

$5,000 rebates plus an easy-to-get employee discount? If anyone wants an Explorer, now is definitely the time to get it.

Yea.  But this will make (perceived) resale value go down even more.

So what?

[BMWDave]

$5,000 rebates plus an easy-to-get employee discount? If anyone wants an Explorer, now is definitely the time to get it.

Yea.  But this will make (perceived) resale value go down even more.

So what?

So people who bought explorers already will be facing a big depreciation hit.  They might not be so happy about that.

[TBR]

I wonder if my Dad would be interested in driving an Explorer as his fuel efficent vehicle... Will the same deal be offered on the Sport Trac?

I dont know....maybe when the new Sport Trac comes out they will be offering rebates like these.  And thats the first time someone has called an Explorer a fuel efficient vehicle

The Durango gets 15 mpg and the F-250 gets 13 mpg, so it would be fuel efficent compared to the rest of our "fleet".  

[BMWDave]

I wonder if my Dad would be interested in driving an Explorer as his fuel efficent vehicle... Will the same deal be offered on the Sport Trac?

I dont know....maybe when the new Sport Trac comes out they will be offering rebates like these.  And thats the first time someone has called an Explorer a fuel efficient vehicle

The Durango gets 15 mpg and the F-250 gets 13 mpg, so it would be fuel efficent compared to the rest of our "fleet".

   

[ifcar]

I wonder if my Dad would be interested in driving an Explorer as a daily driver (the Durango is getting old and the F-250 isn't comfortable and gets crappy mileage)... Will the same deal be offered on the Sport Trac?

Even with those rebates, I'd still chose something else. What would he need to use it for?

[R33 GT-R]

$5,000 rebates plus an easy-to-get employee discount? If anyone wants an Explorer, now is definitely the time to get it.

Yea.  But this will make (perceived) resale value go down even more.

So what?

So people who bought explorers already will be facing a big depreciation hit.  They might not be so happy about that.

The same thing happened to Expedition owners last year.  I remember locally 9500 rebates on them, that's insane.

[ifcar]

$5,000 rebates plus an easy-to-get employee discount? If anyone wants an Explorer, now is definitely the time to get it.

Yea.  But this will make (perceived) resale value go down even more.

So what?

So people who bought explorers already will be facing a big depreciation hit.  They might not be so happy about that.

Like they'll ever know the difference.  

Anyway, they got their Explorers at low prices as well, probably with $3,000 in rebates plus haggling. The difference will be negligible.  

[ifcar]

$5,000 rebates plus an easy-to-get employee discount? If anyone wants an Explorer, now is definitely the time to get it.

Yea.  But this will make (perceived) resale value go down even more.

So what?

So people who bought explorers already will be facing a big depreciation hit.  They might not be so happy about that.

The same thing happened to Expedition owners last year.  I remember locally 9500 rebates on them, that's insane.

There's usually fine print associated with that, and that's a no-haggle price. That's not so outrageous, especially for an expensive SUV.

[TBR]

I wonder if my Dad would be interested in driving an Explorer as a daily driver (the Durango is getting old and the F-250 isn't comfortable and gets crappy mileage)... Will the same deal be offered on the Sport Trac?

Even with those rebates, I'd still chose something else. What would he need to use it for?

First, he is a Ford guy so that badge means a lot and he is awfully cheap. Second, daily driving and hunting (4wd would be a must).  

[ifcar]

The current Sport Trac rebate is only at $2,000.

So, a Ford product is required? Otherwise, I'd say that a Colorado/Canyon crew cab fits in with his gas mileage and price issues.

[TBR]

The current Sport Trac rebate is only at $2,000.

So, a Ford product is required? Otherwise, I'd say that a Colorado/Canyon crew cab fits in with his gas mileage and price issues.

A Ford product isn't required, but it is a good selling point. And, a Chevy would never happen.  

[ifcar]

What brands are allowed?

[R33 GT-R]

Explorer    

[TBR]

What brands are allowed?

Pretty much anything but Chevy. Even Honda would work if they had a truck or suv with a real 4wd system.  

[ifcar]

Then unless you need a comfortable rear seat, a Frontier would work nicely. Among SUVs, an Xterra could fit the bill. And if he doesn't need something that can handle truly difficult terrain, an Escape would be perfect.

[Tom]

Ford vs. Chevy quarrals   Get over it, people.

[Tom]

Welcome back TBR.  Where were you?

[R33 GT-R]

Don't forget the Tacoma.

[Raza]

I want to reduce the number of Explorers too...but not by selling them.

Anyone up for dumping these things in the ocean?

[TBR]

Then unless you need a comfortable rear seat, a Frontier would work nicely. Among SUVs, an Xterra could fit the bill. And if he doesn't need something that can handle truly difficult terrain, an Escape would be perfect.

Like I said, he needs real 4wd, not that Awd nonsense. This vehicle will be used for hunting and dog carrying, it needs to be capabile of handling some pretty serious mud. The Frontier does sound good, though he likes the Tacoma more (but, both of his brother and his sister driving Tacomas, so he might be reluctant to buy one). Unless he can get a really good deal nothing will happen until our new house is built (he will then have a 25 mile commute to work, right now it is less than a mile).  

[TBR]

Ford vs. Chevy quarrals   Get over it, people.

I wish I could get him too, but there are some things you just can't change. Also, I was in Arkansas canoeing.  

[R33 GT-R]

raises hand

[ifcar]

Then unless you need a comfortable rear seat, a Frontier would work nicely. Among SUVs, an Xterra could fit the bill. And if he doesn't need something that can handle truly difficult terrain, an Escape would be perfect.

Like I said, he needs real 4wd, not that Awd nonsense. This vehicle will be used for hunting and dog carrying, it needs to be capabile of handling some pretty serious mud. The Frontier does sound good, though he likes the Tacoma more (but, both of his brother and his sister driving Tacomas, so he might be reluctant to buy one). Unless he can get a really good deal nothing will happen until our new house is built (he will then have a 25 mile commute to work, right now it is less than a mile).

Even "Awd nonsense" can handle serious mud.    

[R33 GT-R]

Then unless you need a comfortable rear seat, a Frontier would work nicely. Among SUVs, an Xterra could fit the bill. And if he doesn't need something that can handle truly difficult terrain, an Escape would be perfect.

Like I said, he needs real 4wd, not that Awd nonsense. This vehicle will be used for hunting and dog carrying, it needs to be capabile of handling some pretty serious mud. The Frontier does sound good, though he likes the Tacoma more (but, both of his brother and his sister driving Tacomas, so he might be reluctant to buy one). Unless he can get a really good deal nothing will happen until our new house is built (he will then have a 25 mile commute to work, right now it is less than a mile).

Even "Awd nonsense" can handle serious mud.  

I like when the computer gets confused because all of the tires are slipping and it sends the power to the windshield wipers.

[TBR]

Then unless you need a comfortable rear seat, a Frontier would work nicely. Among SUVs, an Xterra could fit the bill. And if he doesn't need something that can handle truly difficult terrain, an Escape would be perfect.

Like I said, he needs real 4wd, not that Awd nonsense. This vehicle will be used for hunting and dog carrying, it needs to be capabile of handling some pretty serious mud. The Frontier does sound good, though he likes the Tacoma more (but, both of his brother and his sister driving Tacomas, so he might be reluctant to buy one). Unless he can get a really good deal nothing will happen until our new house is built (he will then have a 25 mile commute to work, right now it is less than a mile).

Even "Awd nonsense" can handle serious mud.  

Not this kind of mud.