GreekGod
03-23-2007, 07:38 PM
QUOTE(7Mary3 @ Mar 12 2007, 07:41 PM) http://www.blueovalforums.com/forums/style_images/bof222/post_snapback.gif (http://www.blueovalforums.com/forums/index.php?act=findpost&pid=153110)
<!--quotec-->Are these vehicles really 'cash cows'? Since the majority are purchased by fleets, I doubt it. One of Ford's problems has been that they rely on too many low margin fleet sales. Chevy dropped the Caprice when fleet sales accounted for more than 50% of total sales. BTW- the '65 Galaxy 500 lived on in Brazil until 1983 with little more than a new grille and tail lights.<!--QuoteEnd-->
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Oh they are cash cows Even at fleet pricing. They are priced the same as the much newer Charger in PI and fleet trim. The CV GM cost almost nothing to build compared to many of Fords other Vehicles.
If I remember right current production will just about halve before they hit the break even point. With the addition of the TC to the Stap Plant it is only going to increase margins on all 3 Panthers.
The Panthers are still accounting for almost a billion dollars a year in profits.
This is why Ford has been so reluctant to kill them. It is also the reason they have been reluctant to stuff a hundred's of millions in to them to up date them, as there is no real guarantee that it will increase sales any sizable amount. They are a paradox at best. Too profitable to cut, updating them (they will need ground up redo's now and a massive advertising campaign) will cut profits hugely with no guarantee of recovering the money with increased sales. So they sit in limbo. The Panthers have been ignored now for the longest period in there lives there have been No significant upgrades at all for several years now.
Prior to this every few years they received some sort of significant upgrade.
It is possible that the plaform has hit it's zenith and any other improvements may require massive surgury. The only improvemnt left that I think could be done on the cheap is the 3V 4.6 and the 3 Link axel. But then again would the investment spent doing this show enough of a return with increased sales with out massive body work as well ?. I seriously doubt it could and all it would most likley do is cut profit margins.
Chevy bowed out of the Traditional RWD market expecting a shift to FWD with the traditional buyers of the RWD sedan. It never happened and GMC has payed the price since and has stated that leaving the RWD sedan market was mistake. It was this goof up that allowed Ford to steal the market in RWD sedans and the Luxury market in the late 90's.
There is a 100K a year of Fleet sales for these cars and that has remained pretty constant at that figure now for a few years now . For cars that cost little to build have some of the highest reliability and owner loyalty ratings in the industry and pretty much have guaranteed sales figures with no advertising & basically no R&D costs for years now. Ford is pretty much bound to making them for a while yet.
When they are cut (3 to 5 years from now) they will most likely still be turning a profit.
The Panthers will probably end life as one of the few Ford Platforms that was profitable it's whole production life. 28 years now and counting. It blows me away that platform designed in the mid & late 70's can still be even remotley viable in todays day and age.
Matthew:
Post 39... http://www.blueovalforums.com/forums/index.php?showtopic=9933&st=20
<!--quotec-->Are these vehicles really 'cash cows'? Since the majority are purchased by fleets, I doubt it. One of Ford's problems has been that they rely on too many low margin fleet sales. Chevy dropped the Caprice when fleet sales accounted for more than 50% of total sales. BTW- the '65 Galaxy 500 lived on in Brazil until 1983 with little more than a new grille and tail lights.<!--QuoteEnd-->
<!--QuoteEEnd-->
Oh they are cash cows Even at fleet pricing. They are priced the same as the much newer Charger in PI and fleet trim. The CV GM cost almost nothing to build compared to many of Fords other Vehicles.
If I remember right current production will just about halve before they hit the break even point. With the addition of the TC to the Stap Plant it is only going to increase margins on all 3 Panthers.
The Panthers are still accounting for almost a billion dollars a year in profits.
This is why Ford has been so reluctant to kill them. It is also the reason they have been reluctant to stuff a hundred's of millions in to them to up date them, as there is no real guarantee that it will increase sales any sizable amount. They are a paradox at best. Too profitable to cut, updating them (they will need ground up redo's now and a massive advertising campaign) will cut profits hugely with no guarantee of recovering the money with increased sales. So they sit in limbo. The Panthers have been ignored now for the longest period in there lives there have been No significant upgrades at all for several years now.
Prior to this every few years they received some sort of significant upgrade.
It is possible that the plaform has hit it's zenith and any other improvements may require massive surgury. The only improvemnt left that I think could be done on the cheap is the 3V 4.6 and the 3 Link axel. But then again would the investment spent doing this show enough of a return with increased sales with out massive body work as well ?. I seriously doubt it could and all it would most likley do is cut profit margins.
Chevy bowed out of the Traditional RWD market expecting a shift to FWD with the traditional buyers of the RWD sedan. It never happened and GMC has payed the price since and has stated that leaving the RWD sedan market was mistake. It was this goof up that allowed Ford to steal the market in RWD sedans and the Luxury market in the late 90's.
There is a 100K a year of Fleet sales for these cars and that has remained pretty constant at that figure now for a few years now . For cars that cost little to build have some of the highest reliability and owner loyalty ratings in the industry and pretty much have guaranteed sales figures with no advertising & basically no R&D costs for years now. Ford is pretty much bound to making them for a while yet.
When they are cut (3 to 5 years from now) they will most likely still be turning a profit.
The Panthers will probably end life as one of the few Ford Platforms that was profitable it's whole production life. 28 years now and counting. It blows me away that platform designed in the mid & late 70's can still be even remotley viable in todays day and age.
Matthew:
Post 39... http://www.blueovalforums.com/forums/index.php?showtopic=9933&st=20