• Please be sure to read the rules and adhere to them. Some banned members have complained that they are not spammers. But they spammed us. Some even tried to redirect our members to other forums. Duh. Be smart. Read the rules and adhere to them and we will all get along just fine. Cheers. :beer: Link to the rules: https://www.forumsforums.com/threads/forum-rules-info.2974/

Ford exploits handout-free status to score historic win

XeVfTEUtaAqJHTqq

Master of Distraction
Staff member
SUPER Site Supporter
Interesting . . .

http://www.thestar.com/Wheels/article/660251

Bailouts put brakes on car sales TheStar.com - Wheels - Bailouts put brakes on car sales
b7661bc04196a81a562aa6072907.jpeg
RENÉ JOHNSTON/STAR FILE PHOTO
A Ford employee works under the hood of a Flex at the Oakville assembly plant. For the first time in decades, Ford sold most cars in Canada last month. (July 2, 2009)

Consumers shun GM and Chrysler, but Ford exploits handout-free status to score historic win

July 03, 2009
Tony Van Alphen
Business Reporter
General Motors and Chrysler have discovered the downside of massive government aid as Canadian sales plunge while bailout-free Ford has roared to the top of the market for the first time in 60 years.
Analysts said yesterday months of lingering consumer uncertainty about the survival of GM of Canada Ltd. and Chrysler Canada have contributed significantly to the companies' continuing decline, including a slide in sales in June of 31 and 58 per cent, respectively, despite the aid.
"There's no ifs, ands or buts. When you are a company that is bankrupt, consumers are hesitant to buy your products," said prominent industry watcher Dennis DesRosiers.
But Ford Motor Co. of Canada Ltd., which did not pursue any public aid, climbed to the top of the monthly market in June for the first time since 1949.
The company's sales surged 24.6 per cent, or almost 5,500 vehicles, to 27,408 in June from the same period last year.
The federal and provincial governments announced June 1 that they would provide $10.6 billion in loans to save GM. A month earlier, the two governments confirmed about $3.8 billion for Chrysler.
But the government rescue packages here and bigger ones in the U.S. have not sparked any rejuvenation in confidence or showroom sales. The two companies continue to struggle more than any of their major rivals in the worst market in several decades.
At the same time, a shortage of inventories – that resulted from their brushes with bankruptcy – has hurt sales more than anything, according to company spokespersons.
Analysts agreed low inventories are the biggest reason for continuing eye-popping sales declines at GM and Chrysler but they note months of questions about their future have left shoppers uneasy.
"I think it is reasonable to assume the financial challenges faced by GM and Chrysler have affected to some extent what vehicles consumers would consider," said Chris Travell, vice-president of the auto division at Maritz Research.
John Tews, a spokesperson for J.D. Power and Associates in Detroit, added that some consumers may be taking a "wait and see" attitude toward buying GM and Chrysler models until they see clear signs the companies can weather the current economic storm in both countries.
Like its rivals, Ford had posted declines for most of the first half of this year but the company has still outperformed the market with smaller decreases. Its sales have slipped almost 5 per cent while the market has dropped 18.3 per cent, or about 162,000 vehicles in the first half.
David Mondragon, Ford of Canada's chief executive officer, said the company's restructuring – which started three years ago – and an emphasis on innovation, fuel efficiency and safety is now paying off.
He also acknowledged Ford benefited to an unknown extent by staying away from any negative publicity that dogged rival GM and Chrysler as they dealt with bankruptcy issues, government loans and the impact on consumer confidence.
Chrysler's sales tumbled a stunning 58.4 per cent to 9,211 in June, a drop of almost 13,000 vehicles from the same month last year. Its sales also dropped 50 per cent in May.
The June collapse pushed Chrysler down to sixth place in sales after leading the market for the first time in 84 years in February.
Chrysler blamed most of the steep decline on a shortage of vehicles, because the company temporarily shut down assembly plants across the continent while it operated under temporary bankruptcy court protection in the U.S.
"With our plants down, limited inventory on the ground and virtually no fleet deliveries, we were relegated to the bench for much of May and June," said chief executive officer Reid Bigland.
"Now that those issues are behind us, we look forward to getting back in the game and regaining our positions as the No.1 or No. 2 highest-selling vehicle manufacturer in Canada."
GM, the perennial monthly industry leader until this year, reported its sales fell 31 per cent to 22,334 cars and trucks in June.
Most GM plants are down as the company works through bankruptcy proceedings in the U.S. so it can emerge as a smaller, stronger company.
The company said it is currently "very lean" on truck inventories.
In the U.S., Chrysler's sales slid 41.9 per cent in June and GM's fell 33.4 per cent. The overall U.S. market slid 27.7 per cent during that period.
DesRosiers said it may take five to eight years before GM or Chrysler can erase all doubts in the minds of consumers about their viability and issues such as backing of warranties. But Travell argued most of the doubt could disappear by the end of the year.
The June results also revealed continuing volatility in the marketplace. Several automakers now are competing for the three top positions, which was strictly the domain of GM, Ford and Chrysler, the so-called Big Three North American automakers, until only a few years ago.
For example, booming Hyundai Auto Canada, which bucked the market trend this year, broke into the top five for the first time in June as sales surged 25.5 per cent to 10,104. Its sales have shot up 21.4 per cent to 52,454 in the first six months despite the industry's sharp downturn.
Toyota Canada and Honda Canada, which have also experienced double-digit declines this year, held third and fourth spots in June.
"There's no longer a Big Three," said DesRosiers. "It's a Big Five or Six."
Mondragon said Ford expects consumer confidence will remain low and adversely affect industry sales during the third quarter before picking up in the final three months of the year.
"There continues to be economic challenges facing every industry and the overall economy," he added.
Mondragon would not comment on whether the company would continue to lead the market during the next few months.
 

thcri

Gone But Not Forgotten
I was wondering how Ford was going to compete with it's competitors having all kinds of money given to them to make them more competitive. Looks like the people are a tad bit more proud of Ford than they are of Government Motors. I hope it continues and it can by building good fuel efficient cars. And removing the union may be a good move. Ford is ready to do that also.


murph
 

XeVfTEUtaAqJHTqq

Master of Distraction
Staff member
SUPER Site Supporter
I know that a 1.5 years ago, I thought Ford was in big trouble so I avoided them and bought a Dodge. :doh:

Somethings are sure hard to predict.
 
Top