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Discussion in 'Auto News & Rumors' started by Stéphane Dumas, Dec 14, 2017.
Don't forget, this is a report, not an announcement. Nothing is official.
I know its been big fun arguing with me the last 2 years about this, and sure maybe just mark it up to dumb luck on my part. Or just listen to just a bit and understand that the business I used to be in with the entire automotive industry is 2 to 3 year out from what happens on the street. And that now that I can freely (well I can't post about Ford now) I was providing insight from old contacts to people on this forum. Which is one of the reason I come here also to get a bit of inside scoop.
A. Camry and Accord are in the exact same boat. The Camry thing was SO bad that Toyota fired and replaced the President of the Georgetown facility. That Now is being retooled to make CUVs and SUVs. The CEO from Japan of all of Toyota came and apologized about the poor performance pledging Change. Accord plant same thing being converted.
B. Volume doesn't matter. Yes, the volume of Sedan market is still huge. But that was artificially being maintained by Negative margins, because unless your Capacity limited you can not change the capacity overnight. To keep from drowning in fixed cost the plants had to continue to pump volume to produce cash flow even if a the end of the balance sheet it turned light red, because the alternative is Deep RED.
C. Was Sergio smarter or just lucky.... maybe a little of both... it took huge courage to drop out of the segment. But a bit of that was because unlike most companies He was out of capacity with limited production capacity even outside NA. He really just had no choice. All the spare capacity had been lost in Daimler drive to nearly kill the company and it had been right sized for the market.
D. Finally if one thinks the trend from short sedans to taller wagons end here in the people moving segment. Hold your shorts it doesn't. For those how have a great passion for cheap short appliance vehicles, your about to pay more and have less choices no matter where you sit.
This ^ should be required reading.
Also, as you have said countless times, even if gas prices should rise in the future, CUVs still have the advantage of better packaging to allow for fuel saving tech, not to mention better margins.
Everything will be a mild Hybrid in 5 years.... so the solution in the powertrain and in weight saving composites not in shortening the format.
You probably weren't singling me out, but I've never argued with you before. I don't even know who you are honestly. ;-) But your response was really well said and I thank you for sharing it with me and all of us. It also made a lot of sense, and provides a glimmer of hope for Chrysler and Dodge as well if they can start producing these CUV's and SUV's instead of being weighed down by the glorious sedan.
I guess I will just pout in the corner not being able to enjoy sedans in the future because everyone will be in automated bloated tics driving around.
Here's to hoping the trend to crossovers ends... but it's unlikely.
Sedans will always have a place, but that would place especially as discount appliance people movers will shrink and be imported either in a box or as a entire vehicle. If it doesn’t stir some passion other then plan competence it not long for the world.
We could have some very dark days ahead.
In principle, there's no reason this should apply only to sedans. My guess is that this is the start of a trend, and that sedans merely represent the first phase.
Supplier said there will be no next Fusion Made in the NAFTA. Ford said they will not import one from China.
Let's say that both statements are true. What option left? To import Mondeo from Europe. IMO, an unlikely scenario due to unpopularity of that vehicle in Europe.
Only if one passionately loves short appliances. But if one likes sedan the products should be more distintive just not as high volume and not at negative margin.
This is only a wild guess, but... what if Ford's Saint Petersburg plant is under consideration as the future source, but "various issues" need to be "worked out" before Ford is able to make a final decision?
It sounds like @Lampredi was right about St. Petersburg plant may be the new home for Fusion.
As recently as 2012 to 2014 there was a lot of excitement surrounding new sedans like the Chevy Malibu, Chevy Impala, Dodge Dart, Chrysler 200 in the media. The Ford Fusion and Focus were doing great.
It seems like in 24 months every American carmaker decided they hate sedans. I figured the Taurus might go away but never the Fusion!
Think a 62 Chrysler New Yorker would be a better choice. Think I solved my next car selection.
Actually I Have A Selfish Reason to Hope for the End of the Fusion Production in Flat Rock, MI.
I Live About a Mile and 1/4 from the Plant.
It Would Cut Down On Local Road Traffic !
I Know, I Know They Would Put Something Else in There.
OH GREAT ! Some of the Reports Say they Will Make Autonomous Vehicles In Flat Rock !
The Vehicles I Would Trust, The Software I Would Not !