and something called Active.
https://techcrunch.com/2018/04/25/f...rth-america-but-the-mustang-and-focus-active/
https://techcrunch.com/2018/04/25/f...rth-america-but-the-mustang-and-focus-active/
Well...in my opinion, they're setting themselves up for a potential issue later, when oil prices inevitably shoot up again. Cars are a hunk of market to be giving up.
Ford sells six sedans and coupes in North America: the Fiesta, Focus, Fusion, C-Max, Mustang and Taurus.
So the line up is already silly. The fiesta, focus, and Cmax are all small econo-boxes.
So the line up is already silly. The fiesta, focus, and Cmax are all small econo-boxes. Consolidate and keep 1 econo-box vehicle that you can sell for $16-20k. I'm thinking a cross between the escape and Cmax, maybe a slightly roomier Subaru Crosstrek but not made as well.
The fusion and Taurus, who cares? The sales of these models must look atrocious. It's not the 90's where a Taurus was one of the more popular cars, it's SUV's. No reason for a Taurus and Fusion to begin with. Good bye.
The mustang has too much heritage and allows them to stretch their performance imaginations while reaching the masses with prices ranging from $20k's to $70k's. Of course you keep it.
CAFE forced FORD and every other maker to kill the station wagon. That led to the explosion of the SUV market since families still needed the hauling capacity. And Minivans just are not cool, are way under powered, and handle like crap.So the line up is already silly. The fiesta, focus, and Cmax are all small econo-boxes. Consolidate and keep 1 econo-box vehicle that you can sell for $16-20k. I'm thinking a cross between the escape and Cmax, maybe a slightly roomier Subaru Crosstrek but not made as well.
The fusion and Taurus, who cares? The sales of these models must look atrocious. It's not the 90's where a Taurus was one of the more popular cars, it's SUV's. No reason for a Taurus and Fusion to begin with. Good bye.
The mustang has too much heritage and allows them to stretch their performance imaginations while reaching the masses with prices ranging from $20k's to $70k's. Of course you keep it.
Yup, everyone has to play that silly game. This also rumored as to why Ford limited production of the Raptor the first year or 2 and why Dodge limited Hellcat production initially. Classic case of Gov putting its nose (feet, arms, head, shoulders, knees, and toes too) where they don't belong.I was told a few years back that the only reason they brought out these little cars was to help with fleet mpg. They sold very small numbers but it helped with Obama fleet requirements.
Flex fuel trucks that get 15mpg actually get credited for around 80mpg because flex fuel is only 15% gas. So on a gas mileage basis they score higher.The car makers have to met a mandated average MPG for their fleet of models. Wonder how this will effect Ford.
Back when gas prices were $4 a gallon we had a grade A GOP a hole in the whitehouse who was saying it was supply and demand when in reality it was a bubble from price run up trading on the commodities futures market.Gas prices won't go up substantially unless another Democrat gets into the white house. Democrats ruling CA will continue to raise gas taxes not because they don't like SUV's.
OPEC is much less powerful today than it was prior to the US shale boom. And this new supply of oil can be turned on much quicker than offshore rigs - i.e., supply can be increased fairly quickly in response to increased demand. Combine the US new role as the marginal producer with the shift toward electric vehicles (China is ahead of the US on this) and the supply/demand balance for oil has structurally shifted. Of course a Middle East war could disrupt things, but short of war, it will be very difficult for oil to reach the highs it has reached in the past.Well...in my opinion, they're setting themselves up for a potential issue later, when oil prices inevitably shoot up again. Cars are a hunk of market to be giving up.
This is a US-only shift. Ford will still make cars for other markets. In the US, yeah, Honda is at a disadvantage given its lineup, but this has been the case for years - Ford's announcement isn't heralding a shift in buyer interest, but merely reflecting where buyers already are. For years, all of Ford's profit was coming from trucks and SUVs.I've understood Honda is in big trouble because they mostly built their reputation on cars.
The Ford Focus Active, which will be a crossover hatchback, will fill that role.So the line up is already silly. The fiesta, focus, and Cmax are all small econo-boxes. Consolidate and keep 1 econo-box vehicle that you can sell for $16-20k. I'm thinking a cross between the escape and Cmax, maybe a slightly roomier Subaru Crosstrek but not made as well.
In addition to the flex fuel math @fishgutzy mentioned, Ford will be adding hybrid powertrains to many of their vehicles, including the F-150 and Mustang.The car makers have to met a mandated average MPG for their fleet of models. Wonder how this will effect Ford.
Don't forget that an electric car doesn't eliminate the pollution, it just pushes it upstream to the Duke Power(s) of the world.Fourth...we are STILL a long, long way towards having a national power grid robust enough to handle the kind of power requirements that a significant percentage of personally owned vehicles would require to operate. Not to mention the electrical power generating capacity for it (because, you know...there's a protest group for every frickin' possible source of electrical power generating process capable of generating high enough power densities to be useful in this manner).
Flex fuel trucks that get 15mpg actually get credited for around 80mpg because flex fuel is only 15% gas. So on a gas mileage basis they score higher.
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Source?it takes more energy to make flex fuel than gasoline.
Manufacturers are still making ICE vehicles, and they'll be making hybrids for a long time.First, a significant number of miles on my vehicle is on the road. I can't drive from SC to VA on an all-electric vehicle. And even if the infrastructure was in place to support charging, that's STILL a significant amount of time to charge the battery enough to make the entire trip. I can easily drive about 500 miles in my LeSabre before having to stop for gas. And that stop can be as short as the time it takes to fill the tank and get back on the road.
Hybrid SUVs. And pretty much every manufacturer is working on EVs, and no doubt quite a lot of those will be SUVs.Second, all electric vehicles are still tiny for my needs. I have a wife and three teens. Where am I going to put everybody? And anything we may need to take with us, too?
If everyone thought the way you did, the resale value for hybrid and electric vehicles would be in the toilet. A quick Craigslist search for used Priuses suggests otherwise. So while some market participants feel as you do, other participants clearly do not.Third, they STILL haven't convinced me that the used car prices for all electric vehicles are going to be worth it, because I, for one, am really not into buying a used vehicle and then finding out I need to replace the battery for several thousand dollars shortly afterwards. For me, I tend to buy used vehicles (with a decently low amount of miles for the age) around the 7 to 10 year range. And then I expect to drive that vehicle until it's no longer worth keeping, for whatever reason. The last car, for example, I got rid of at 311,000 miles (around 225,000 mine) after several years.
Yes, high oil prices helped launch the shale revolution, but it's here now and it's not going away. Your read on OPEC seems very odd. OPEC tried oversupplying the market in the hopes of bankrupting the shale industry, and the shale producers responded to the pressure by becoming much more efficient. Their breakevens dropped by tens of dollars per barrel. OPEC cried "uncle" first because they could't withstand the pain anymore (the OPEC countries national budgets are highly dependent on oil profits), and instead of crippling shale, they made the American shale industry more resilient. American shale is the marginal producer, and since they aren't part of OPEC, and because they can turn operations on/off much more quickly than traditional rigs, they can respond to higher prices relatively quickly.As for oil production in this country; yeah, it's up. It's up largely due to the high oil prices we had for several years, which may sound counter-intuitive. This is because when oil prices are really low, maintaining oil rigs, and setting up new rigs, is cost prohibitive. When prices go low, the oil pumps in Texas, for example, are still run as long as they're pumping oil; but when they break down, the pump is pretty much "retired in place" until oil prices go high enough to make getting it operational worth the cost again. Happens all the time.
So OPEC isn't strictly "less powerful" today because of the shale oil boom in this country; it's because they use the resources they have to help maintain their own market and market strength, relatively speaking with respect to the world market. They're always looking at this in the long term. They'll drive oil prices low for several reasons...such as to help keep people buying oil from them AND it helps minimize oil production elsewhere in the world (because it's more affordable to buy from OPEC). When they've got the market in their favor this way, they keep it that way for a while and as oil production falters in the more developed nations (because it costs more money in developed nations to access, develop, maintain, and expand their own oil resources), they can shift the market prices gradually higher as the developed nations needs increase.
The oil is a "boom and bust" type of industry because of this.
Don't forget that an electric car doesn't eliminate the pollution, it just pushes it upstream to the Duke Power(s) of the world.
Manufacturers are still making ICE vehicles, and they'll be making hybrids for a long time.
Hybrid SUVs. And pretty much every manufacturer is working on EVs, and no doubt quite a lot of those will be SUVs.
If everyone thought the way you did, the resale value for hybrid and electric vehicles would be in the toilet. A quick Craigslist search for used Priuses suggests otherwise. So while some market participants feel as you do, other participants clearly do not.
Yes, high oil prices helped launch the shale revolution, but it's here now and it's not going away. Your read on OPEC seems very odd. OPEC tried oversupplying the market in the hopes of bankrupting the shale industry, and the shale producers responded to the pressure by becoming much more efficient. Their breakevens dropped by tens of dollars per barrel. OPEC cried "uncle" first because they could't withstand the pain anymore (the OPEC countries national budgets are highly dependent on oil profits), and instead of crippling shale, they made the American shale industry more resilient. American shale is the marginal producer, and since they aren't part of OPEC, and because they can turn operations on/off much more quickly than traditional rigs, they can respond to higher prices relatively quickly.
For sure, oil is a boom and bust industry, as is every commodity. My point is that the structure of the oil market has changed substantially, not that its cyclical nature has changed.
But don't take my word for it - just look at Saudi Arabia's actions. They are going to sell part of their stake in Saudi Aramco to the public. Crown Prince MBS sees the writing on the wall, and he doesn't want SA to continue to hang its future on oil. Also, notice that NOBODY is talking about "peak oil" anymore. Before the shale revolution, "peak oil" prognostications were spewed by every pundit and their mama.
+1When you think about it, it's really incredibly inefficient, from an energy expenditure point, to transport millions of people by individual privately owned vehicles. It's more efficient to transport those millions of people by some form of mass transit system. Bus or train, for example.
(That's not an argument for doing away with privately owned vehicles, however...it's just a statement of fact.)
+1
This is an argument I've made before - the capacity utilization of passenger vehicles is very low, ~5%. 5% utilization is fine if it's a small ticket purchase like a tablet or a drill/driver set. But 5% utilization on what is most people's second largest purchase (after a home) is incredibly inefficient.
This is why private vehicle ownership is going to decline precipitously as autonomous driving becomes more widespread (eliminating the largest cost of a ride sharing service like Uber or Lyft). Why pay for a vehicle that spends 95% of its life parked if you can have cheap access to a vehicle whenever you need it and someone else pays for insurance, registration, maintenance, and repairs?
Of course there will be a market for privately owned cars, but it will be much smaller than it is today. Even in cities outside of NYC, we are seeing car-nevers (millenials who have never owned a car). This will grow quickly once autonomous driving gains a foothold in the market.
Was from a article I read about 5 years ago...want to say Car and Driver.Source?
Interesting. I've been curious about stuff like this, because I hear people talking about getting their car "tuned" for E85 with significant HP increases.Was from a article I read about 5 years ago...want to say Car and Driver.
Even if today if it's a postive energy source a gallon of gas gives off more energy than ethanol by a considerable 30-40%.
Was from a article I read about 5 years ago...want to say Car and Driver.
Even if today if it's a postive energy source a gallon of gas gives off more energy than ethanol by a considerable 30-40%.
Interesting. I've been curious about stuff like this, because I hear people talking about getting their car "tuned" for E85 with significant HP increases.
Different plants. Also are they shutting down just thr NA stuff or the Europe plants as well.Hopefully they will move those folks over to the truck and suv lines.
I don't this will have much impact on their European operations. In Europe, cars are popular. The roads in Europe, especially in and around cities, tend to be narrower and parking spots are smaller. Also, gas is very expensive, so fuel efficiency really matters.Different plants. Also are they shutting down just thr NA stuff or the Europe plants as well.
I don't this will have much impact on their European operations. In Europe, cars are popular. The roads in Europe, especially in and around cities, tend to be narrower and parking spots are smaller. Also, gas is very expensive, so fuel efficiency really matters.
Picture traffic in Paris or Rome. Then picture a F150 on those streets.