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Ford offers Employee Dicount!

Discussion in 'Auto Industry News' started by Stic-o, July 6, 2005.

^^Searches ExplorerForum.com^^



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  1. Stic-o

    Stic-o Elite Movie Star Elite Explorer

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    Starting today Ford will offer a plan (Ford Family Plan)similar to the famed GM Employee discount program. GM's sales were up last month over 40% last month by doing this plan. Chrysler will also participate.

    A Ford Explorer XLT that normally sells for $32,895 costs employees $28,739. After existing customer cash incentives, the sport utility vehicle would sell for $24,739 under the Ford Family Plan.

    new article

    Also see...ford.com
     
    Last edited: July 6, 2005
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  3. dtl 2k2 sport

    dtl 2k2 sport Well-Known Member

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    hmmm, time to up grade to an EDDIE BAUER style maybe,, before they make the ugly newer style,, it's a great idea, i wish actually toyota would do it ,, but their sales are pretty strong so doubting it, But gm's sales went through the roof, maybe they will keep it around alittle longer then just a month!! We shall see, anyone thinking of taking action while this deal is on the table?
     
  4. TTG

    TTG Active Member

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    Well, if they want to keep their sales high they'll have to keep the prices at that level. If they just permanently set their prices to that level for everyone, then it might give themt he long term revenue increase they'll want. And it might lower the prices of used ones significantly meaning I'm getting a newer X sooner :)

    Maybe it's just wishful thinking on my part though.
     
  5. Garth

    Garth Well-Known Member

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    Sounds like its good for the customers but bad for the(Ford Motor Company) products. Enough though I dont mind having me one.
     
  6. Mbrooks420

    Mbrooks420 High Voltage. Elite Explorer EF Vendor

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    It's just a sales gimmick, although it seems to work. Anyone that pays MSRP on an American vehicle is simply getting fleeced. Local dealers have been advertising Xlt's for 23k for almost a year in this area. If I was a GM employee I'd be pretty salty I couldn't get a better deal on a new truck than someone who has nothing to do with the company.
     
  7. Stephen

    Stephen Moderator In Memoriam Elite In Memoriam

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    I'm sure the employees get even better pricing. Like you said, its just a sales gimmick.
     
  8. dtl 2k2 sport

    dtl 2k2 sport Well-Known Member

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    hehe, i'm thinking were all a bunch of positive thinkers here!! or are we just a bunch of realists??
     
  9. jayhawkexplorer

    jayhawkexplorer Well-Known Member

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    I'm so disappointed to see that Ford and Chrysler both went to this lousy plan, and damn GM for starting the trend. Its a short term fix that's going to hurt all three in the long run. Think about it. They're selling cars based solely on price. They're telling people that the products are inferior and that they should be purchased because they're cheap. Its completely destroying the reputation for reliability and quality that they're slowly regaining through things like the recent JD Power 3-year dependability study, which had GM and Ford winning all vehicle catergories except 4 won by Toyota. And its even worse for Ford. Right when they were selling vehicles without incentives or with very few (Mustang, Five Hundred, Freestyle, F-150), they resort to this garbage. Its a short term fix that will pay dividends for now but it'll hurt big time in the long term. They're creating a selling environment where people think they're being ripped off paying MSRP, and there's no way to make good profits that way. Its amazing how three companies that have been around this long can make absolutely stupid marketing decisions like this. Ok...off my soapbox for now.
     
  10. davidmmm69

    davidmmm69 Well-Known Member

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    you ntice the most popular they exclude from the sale???

    at least they are not promoting the fleasing program.
     
  11. nailhead_sled

    nailhead_sled Member

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    Not necessarily a bad plan… If Ford has significantly increased its quality and reliability, this could well be the starting point to win back customers.
    If the average consumer who currently shuns domestic automobiles because of the (real or imagined) ‘overall inferiority’ to their imported brethren was to purchase a new Ford based only on this tremendous savings, and (and it’s a BIG and) was then to discover quality/reliability on par with the imports he/she had been driving for the last ten years, I would hasten to suggest that this individual would represent: - a.)Greater potential for repeat business b.) A customer with renewed confidence in North American automobile companies, or at least c.) One less consumer constantly badmouthing domestic producers based on their POS 1984 clunker of an Oldsmoford.
     
  12. Garth

    Garth Well-Known Member

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  13. jayhawkexplorer

    jayhawkexplorer Well-Known Member

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    Interesting argument and I definitely can see the logic in it. I just hate to see the strategy that Ford implemented go to waste. It was slowly starting to work and I wanted to see what would happen once the Fusion came out this fall. But that's all gone now. Hope it helps Ford get back on its feet, they've got some great product but they just need a little help to get it going again.
     
  14. Stephen

    Stephen Moderator In Memoriam Elite In Memoriam

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    I don't think its a bad plan at all, and I think the marketing campaigns surrounding this are spectacular! Very well done ads that make it seem like a "great opportunity" to get into a great car at a special price, an "in" to the family. Smart.

    GM saw a 40% increase in sales too. Might just save their butts.
     
  15. dtl 2k2 sport

    dtl 2k2 sport Well-Known Member

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    Not to vary off the subject but Gm stock has been recomended as well. I was watching Jim Kramer and he said w/ out a pause of doubt, to sell ford stock and roll into ford,, Possible trouble on the horizen for Ford in the long term? Just a thought.
     
  16. Mbrooks420

    Mbrooks420 High Voltage. Elite Explorer EF Vendor

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    You ARE getting ripped off paying MSRP on a new vehicle. Anyone that pays full price on a new vehicle either ordered it directly, and exactly how they wanted it, or they got fleeced. They have been selling cars at well under MSRP for almost 2 years, all they are doing now it advertising the deals you can get.
     
  17. davidmmm69

    davidmmm69 Well-Known Member

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    I am sure the uppers at Ford are very upset they didn;t think of it first especially knowing how much of a boost it gave to GM.
     
  18. jayhawkexplorer

    jayhawkexplorer Well-Known Member

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    Early reports are that Ford and Chrysler have seen big July sales boosts as well. It IS definitely a short-term sales boost but I still contend that it will hurt profits and the business in the long run. They might be selling a lot of cars but they're doing it with very thin margins now. Would you rather sell a lot of cars with little profit or less cars with a lot of profit? Its obvious what Ford/GM/DCX answer to that right now. The problem is that since 9/11, people have become so accustomed to huge discounts from those three, that you can't ever stop offering them. At the very least, its really hard to wean people off of the discounts. Ford managed to sell all Mustangs this year without discounting, and they sold Five Hundreds, Freestyles, and F-150's for a while after launch without discount, just as Chrysler has managed to sell the 300/Magnum without them thus far. That's what eventually has to happen with all the vehicles if Ford will ever return to good profitability and this program is not helping it. Toyota and Honda and Nissan manage to sell a ton of cars without discounting and that, among other things, is why they're so profitable. Toyota made over $15 billion last year, and I know there's more reasons then just this but its a part of it.
     
  19. davidmmm69

    davidmmm69 Well-Known Member

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    Sometimes Quantity is more important.
    Just think of how much they make on the extended warranties of all those cars. and also all the future warranty and service work for the dealer.

    I still think the full sticker price of what up to $38000.00 for a new Explorer is ridiculious. Considering you drive it off the lot and it just dropped huge$$$
     
  20. Garth

    Garth Well-Known Member

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    A explorer price should never go past $40,000. $42,000+ for a limited and you dont even get a nav. so when it is included it will cost $44,000. Not right at all.
     
  21. davidmmm69

    davidmmm69 Well-Known Member

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    too much monny for something that goes down in value.
     

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