Added-value Falcons pay back Commodore in kind (August 2008)

[DanielXR8]

It's started. From Carsales.com.au

Added-value Falcons pay back Commodore in kind (August 2008)

Words -
Ken Gratton


Ford is introducing retail incentives to bolster Falcon's sales -- and take some of the retail lustre off the Commodore

Special Value Pack (SVP) Falcons will go on sale in August and remain on sale during September. The retail initiative, which effectively amounts to discounting, came as a surprise, following Ford President Bill Osborne's mildly judgemental remarks last month.

"Blunting action" was the way Osborne described Holden's tactics to nobble the launch of the Falcon, by discounting the Commodore at entry-level and releasing 60th Anniversary limited edition models -- vehicle variants of a type which Ford would call SVP models.

It now looks like Ford will be doing a little 'blunting' of its own. The upcoming SVP models will be based on G6, XR6 and the Ute.

At $39,990, inclusive of on-road costs, the G6 model will feature the single-fuel E-Gas LPG system, Bluetooth and iPod integration, all as standard.

On the other branch of the Falcon model range 'V', the XR6 will also be priced at $39,990 driveaway, with 18-inch alloy wheels, Bluetooth and iPod integration included in the standard specification.

Even commercial vehicle buyers won't be left out. Buyers of the Falcon Ute will also land automatic transmission and the E-Gas LPG system for free.

Does Ford know something they're not letting on? Would Ford be planning a little 'blunting' for an upgraded Commodore with direct-injection V6 and/or AFM V8? We're waiting with bated breath...

[uranium_death]

Holden are very smart in how they market their product.

It reminds me of The Simpsons episode when Lisa Simpson was dissatisfied with the talking Malibu Stacy doll, so she made her own, "Lisa Lionheart."

After the Lisa Lionheart doll starting selling well, the makers of Malibu Stacy decided to destroy Lisa Lionheart by simply re-packing Malibu Stacy with nothing more than a cheap hat.

Holden put a couple of labels on their products and people wet their undies.
Holden might lower the price of the entry level Commodore, but it doesn't even have a bloody air-con.

I really dislike the VE. I liked the look of the VT-Z.

But I hope that these little bonuses can help the Falcon a little in terms of sales, as well as perceived value.

[prydey]

i think just before the release of the fg, holden added a/c as std equipment. how they got away with it as an option for so long without any form of media bagging them for it i'll never know.

[Rodp]

To me, this speaks volumes. Ford aren't getting the sales they expected and if I had already bought an FG, I'd be severely dissapointed that I've already taken a bigger depreciation hit on the back of this decision.

Hopefully it does inspire more people to choose Ford though. Seems like a bit of a desperate move so early after release.

[FalconXR6]

Originally Posted by Rodp

To me, this speaks volumes. Ford aren't getting the sales they expected and if I had already bought an FG, I'd be severely dissapointed that I've already taken a bigger depreciation hit on the back of this decision.

Hopefully it does inspire more people to choose Ford though. Seems like a bit of a desperate move so early after release.

Completely agree with the first bit.

Not a good marketing strategy at all IMO.
All it does is upset they loyal customers who have already purchased an FG and may result in a handfull of additional sales.

Let's hope the comment re the DI V6 Commo isn't true.
In Caddy form, this motor rips out 220kw+ and hits 100km in mid 6's!
This motor in the Commo would make it much faster than Ford's NA I6!
Not cool.

[|||]

discounting the FG already? is this the quickest run out sale in history?

[NC1183]

Originally Posted by FalconXR6

Completely agree with the first bit.

Not a good marketing strategy at all IMO.
All it does is upset they loyal customers who have already purchased an FG and may result in a handfull of additional sales.

Let's hope the comment re the DI V6 Commo isn't true.
In Caddy form, this motor rips out 220kw+ and hits 100km in mid 6's!
This motor in the Commo would make it much faster than Ford's NA I6!
Not cool.

But if they do release the 220kw motor, then the P plater kids in the family won't be allowed to drive it. IIRC anything with more then 200kw is classed as a performance 6, in NSW anyway

[freaky]

Will be interesting to see whether the ANCAP rating and advertising will have any effect over the next few months.

Given the FG is a safer car. Why would anyone stick their family in a VE over an FG is beyond me given they are similarly priced with comparable features ?

Doing discount deals already is not good.

[phillyc]

I wish Ford would've done as I emailed them earlier in the year.

Although the FG is more keenly priced than the VE, it isn't competing against the VE. It is competing against alot of imported vehicles. Witness the recent reduction of Mazda6 from $29,990 to $27,990. Cars are getting cheaper, but the entry level Ford was more. Although for a substantially better car.

I posted this on 22/3/08 in the FG No.1 in sales "Ford bullish on Falcon future" thread.

http://www.fordforums.com.au/showthr...=Falcon+Mondeo

Well, the engineering certainly seems to be there as does the quality of the product. What will constitute a compelling & appealing price?

With the high equipment of Mondeo and the starting price of $29,990 the bar has been set.

The Falcon should be less than the outgoing model. When it comes to new models, most imports are costing less than their predecessors.

FG should start at $31,990. Yes its also less than the opposition rrp. But both Aurion & VE, specifically VE ($34,800 driveaway) are already into a discounting cycle and like it or not, Ford have to compete with the lower price.

[TC200six]

WHAT? This is getting me mad. A discount already and after statements in the media about fears that Ford Australia could follow Mitsubishi's local manufacturing? Ford is releasing new Falcon sedan models with the price of $39,990 and it's an extra value model? Just an extra value G6 and XR6 with optional features standard. If they really want to attract more people to buy Falcons to re-gain sales to save their own butt from Holdenwoo's professional marketing team, they should have something even cheaper than the XT, maybe a "Special Value Pack" XT with the price of $29,990 drive away. If only Ford were smart enough to do that, but if $29,990 maybe a little far fetched for a full-size sedan this day and age then how about $32,990?

If only it were like the 1980's when Falcons were under $20k, they even released a "Family Addition" XF for $13,995 $1400 less than a comparably equipped GL sedan at that time.

When I had a look at the Holden stand at the Brisbane "Ekka" this year, I couldn't believe how good the sales persons were at pushing you to buy it compared to over at Ford's stand. I sat in the 60th anniversary Omega and a sales man jumped out and talked about the boot space and showed where the battery was saying how it's safer at the back in case of an accident. Meanwhile, at Ford down the lane they had 3 FG sedans XT, XR6(N/A) and a G6E(N/A). Holden had as much cars with leather trim as possible while the only Falcon with leather there was the G6E. The sales persons weren't good at making you want to buy them like the Holden mob were good at, nor did they know much about the vehicles. Another down side was the dealer hosting the Ford stand(Southside Ford), apparently hasn't got it's shipment of FPV's yet so there weren't any FPV's there.

Well to calm myself down, I hope Ford do read these forums and do come out with an SVP XT.......Oh, and also advertise them too!

[XR6_190]

Originally Posted by FalconXR6

Completely agree with the first bit.

Not a good marketing strategy at all IMO.
All it does is upset they loyal customers who have already purchased an FG and may result in a handfull of additional sales.

Let's hope the comment re the DI V6 Commo isn't true.
In Caddy form, this motor rips out 220kw+ and hits 100km in mid 6's!
This motor in the Commo would make it much faster than Ford's NA I6!
Not cool.

From everything I have heard, this DI V6 will go into things like SV6 and Calais, while the rest of the range will get the 195Kw High Output V6 that the High end models have now. They would be mad to get this engine in the main line of vehicles, it would put the base car into the performance sector and raise insurance costs, scaring away fleets, young people and families.

[Smoke Pursuit]

This is only the start...

Suprised they didnt put an SR model on the list to, i guess that will be before christmas.

Remember Holden brought out the Commodore V Series (tarted up Omega) pretty much straight away after release, its nothing new in the current climate.

P.s. Holdens doing brand new SS sedans for 40 kay drive away, they are hard to walk past!

[Smoke Pursuit]

Originally Posted by Laser '81

WHAT? This is getting me mad. A discount already and after statements in the media about fears that Ford Australia could follow Mitsubishi's local manufacturing? Ford is releasing new Falcon sedan models with the price of $39,990 and it's an extra value model? Just an extra value G6 and XR6 with optional features standard. If they really want to attract more people to buy Falcons to re-gain sales to save their own butt from Holdenwoo's professional marketing team, they should have something even cheaper than the XT, maybe a "Special Value Pack" XT with the price of $29,990 drive away. If only Ford were smart enough to do that, but if $29,990 maybe a little far fetched for a full-size sedan this day and age then how about $32,990?

If only it were like the 1980's when Falcons were under $20k, they even released a "Family Addition" XF for $13,995 $1400 less than a comparably equipped GL sedan at that time.

When I had a look at the Holden stand at the Brisbane "Ekka" this year, I couldn't believe how good the sales persons were at pushing you to buy it compared to over at Ford's stand. I sat in the 60th anniversary Omega and a sales man jumped out and talked about the boot space and showed where the battery was saying how it's safer at the back in case of an accident. Meanwhile, at Ford down the lane they had 3 FG sedans XT, XR6(N/A) and a G6E(N/A). Holden had as much cars with leather trim as possible while the only Falcon with leather there was the G6E. The sales persons weren't good at making you want to buy them like the Holden mob were good at, nor did they know much about the vehicles. Another down side was the dealer hosting the Ford stand(Southside Ford), apparently hasn't got it's shipment of FPV's yet so there weren't any FPV's there.

Well to calm myself down, I hope Ford do read these forums and do come out with an SVP XT.......Oh, and also advertise them too!

Yet southside Ford had 5 or so FPV sedans at the ALL FORD DAY last weekend.

Whats wrong with these guys!

[vztrt]

Originally Posted by LSTerritoryGhia

P.s. Holdens doing brand new SS sedans for 40 kay drive away, they are hard to walk past!

Very true, almost put my self in one...until I sat in it and was shoked with the poor interior.

[mr smith]

Falcon is over!
This is Mitsubishi 380 all over. Private buyers dont want an XT and XR's are luxury items that "were" financed by rising house prices.
No production at Broady today.

[MoreHPformyXR6]

Originally Posted by DanielXR8

Added-value Falcons pay back Commodore in kind (August 2008)


On the other branch of the Falcon model range 'V', the XR6 will also be priced at $39,990 driveaway, with 18-inch alloy wheels, Bluetooth and iPod integration included in the standard specification.

...

I noticed that discountnewcars had the FG XR6's at $39,990 driveaway the other week with 18's. Not good IMO for FG's resale or for people that have already bought prior. It may generate a handfull more sales than not offering incentives but the big car's deprication has been shot for quite a while so let's just kept the trend going. Giving consumers benefits in one hand on the purchase and take it away in the other with the trade. (So its back to even steven's in someway's).
All the car companys have been giving more for less for ages, some manufactures need to give more than others. Makes me think if I will bother buying new again or buy a quality large car that's 12 to 18 month's young. Even the 31k I paid for mine (driveaway) as a new car in Oct 05 has taken a massive depreciation hit.

[Smoke Pursuit]

Originally Posted by mr smith

Falcon is over!
This is Mitsubishi 380 all over. Private buyers dont want an XT and XR's are luxury items that "were" financed by rising house prices.
No production at Broady today.

Ford wont die the same fate as mits just yet..

Remember we have Falcon sedan, wagon, ute and Territory to keep us going, roughly 5500 - 6000 sales per month, compared to an average of 1000 for Mits!

Whether Ford can justify any future activity will be where the drama remains.

[Nikked]

I don't see whats to alarmed about, its not a flat discount on the range...they are just giving people better options. Its a compititon, A G6 std with LPG and Fancy electronics is sure to draw sale away from the Berlina, same with the ute...

It would be worrying if the whole range had discounts. But the FG is doing well and there is always room for improvement.

But as usual this site predicts doomsday for the falcon every time a media release pops up...

[snappy]

Every article i read says all car makers are finding it harder to sell cars. FFS at least there trying to sell the cars rather then have them sitting on the lot .
Also in somways it's publicity .


They should just fit the cars with anti speed camera lasers that would sell cars ,at least on the fpv range :

[Bossxr8]

Originally Posted by MoreHPformyXR6

I noticed that discountnewcars had the FG XR6's at $39,990 driveaway the other week with 18's. Not good IMO for FG's resale or for people that have already bought prior. It may generate a handfull more sales than not offering incentives but the big car's deprication has been shot for quite a while so let's just kept the trend going. Giving consumers benefits in one hand on the purchase and take it away in the other with the trade. (So its back to even steven's in someway's).
All the car companys have been giving more for less for ages, some manufactures need to give more than others. Makes me think if I will bother buying new again or buy a quality large car that's 12 to 18 month's young. Even the 31k I paid for mine (driveaway) as a new car in Oct 05 has taken a massive depreciation hit.

Falcon resale has been down the tubes for a very long time, so why bother trying to save it if it means you sell less cars because you don't discount. If you want good resale value you don't buy a Falcon, so why pander to people who do want good resale when they are more likely to buy a Toyota anyway.

Ford say that special value packs don't affect resale anyway because they are value packs, not straight price discounts.

[TC200six]

Originally Posted by LSTerritoryGhia

Ford wont die the same fate as mits just yet..

Remember we have Falcon sedan, wagon, ute and Territory to keep us going, roughly 5500 - 6000 sales per month, compared to an average of 1000 for Mits!

Exactly!
Ford Australia is in no sight of closing local manufacturing any time soon.

In march '08, there was 702 Mitsubishi 380s sold on the last month of the 380's life, yet on the same month there was 2322 Falcons(not including the Utes) sold and a total of 4923 locally built Fords sold (not including the left over Fairlanes).

In July this year there were 5804 Fords from Broadmeadows sold, 3448 Falcons (not including utes), 1328 Falcon utes and 1028 Territorys.
Not that far behind Holden's Locally built vehicles with 6162 sold in July '08.

So Ford oz are clearly in no sign of following Mitsubishi oz's fortune.

[Romulus]

Originally Posted by LSTerritoryGhia

This is only the start...


P.s. Holdens doing brand new SS sedans for 40 kay drive away, they are hard to walk past!

Until you sit in one and realise the A pillar is as thick as a tree trunk and hinders vision. Give me a BA/BF any day.

[JPFS1]

Let me tell you... things aren't as grim at Ford AUS as they used to be, and as many people perceive them to be.

Things are looking good, with good contingency plans going forward.

They'll be here for a while yet, and i'd say, doing might fine against the financial performance of Holden.

[Romulus]

I think the perception with Holden is because they sell a greater volume of cars means they are financially better off. As suggested above this may not be the case. Better selling a lower volume with a better profit margin than a large volume at almost cost.

[RATT]

All I have to say is that, your damned if you do a good thing like this, and your damned if you did nothing as you would be accused of not trying.....

[bathurst77]

Originally Posted by Rodp

if I had already bought an FG, I'd be severely dissapointed that I've already taken a bigger depreciation hit on the back of this decision.

Comments like this make me burn!
Everytime Ford improve, add value or bring out a new model, theres always someone whinging that its a slap in the face of current owners, coz it means their car is worth less. Get over it. As soon as you leave the yard, your car is worth less.

I brought a Brand new Mondeo 2 months ago. and Im sure soon there will be a better/cheaper/newer one and mine will be the not so good one.

Cars are just like TVs and P.Cs. I can promise you, even those people about to go get their new pride and joy this week, that thers a new BETTER one on its way.

And if it wasnt for this, we would all still be running around in XK type falcons, coz ford didnt want to make current owners look bad by bringing out anything better, while they had current ones.

[GS608]

Originally Posted by TVS Super Pursuit

I think the perception with Holden is because they sell a greater volume of cars means they are financially better off. As suggested above this may not be the case. Better selling a lower volume with a better profit margin than a large volume at almost cost.

thats exactly right, we don't know what kind of profit Ford are making on each Falcon they sell, even with these discounts. Does anyone know if they are reaching their sales targets?

[Tles]

Think a big part of this is that Holden is dropping the cost of their Duel fuel to around $400, too many G/R6 Egas starting to appear for their liking I guess. Logical response by Ford. Preticking all the standard option boxes sounds like a pretty good deal to me.
Earlier than any of us would've liked, hopefully they left "built-in" response room to counter the expected challenges from the opposition.

[Rodp]

Originally Posted by bathurst77

Comments like this make me burn!
Everytime Ford improve, add value or bring out a new model, theres always someone whinging that its a slap in the face of current owners, coz it means their car is worth less. Get over it. As soon as you leave the yard, your car is worth less.

I brought a Brand new Mondeo 2 months ago. and Im sure soon there will be a better/cheaper/newer one and mine will be the not so good one.

Cars are just like TVs and P.Cs. I can promise you, even those people about to go get their new pride and joy this week, that thers a new BETTER one on its way.

And if it wasnt for this, we would all still be running around in XK type falcons, coz ford didnt want to make current owners look bad by bringing out anything better, while they had current ones.

Keep burning. Cars do depreciate, but I'd prefer that depreciation to not be accelerated by the manufacturer 3 months after its release. I expect these sorts of deals to be offered at the end of the run before the rampup of the new model, not at the start! Depreciation is a factor I consider when purchasing a motor vehicle when I'm paying upwards of $50k for it.

You're building a strawman. There's nothing about the deals that Ford are offering that are different to what you could buy 3 months ago, they're just making it cheaper for you to buy it with extra options thrown in at no cost. It has nothing to do with innovation. It has nothing to do with Ford owners running around in XK's if they didn't offer incentives for a limited time... to then compare it to a PC or a TV?! Are you kidding?!

We all expect the natural progression of your car taking a depreciation hit on the pinnacle of a newer model or a new series coming out, it's expected.

[Buddy 1]

Get over it Guys :P

As has been Pointed out is just a fact of Life!

When I Purchased my Territory SX not so long later the SY Came Out with an Improved Engine & Fantastic 6 Speed AUTO, I was a bit Upset yes but realise this is life & was nothing I could do about it.

I Applaud Ford for being more Competitive (Go Figure).