Thursday, May 29, 2008

Why did Ford make the Escape hybrid?

Real potential escaping Ford?

With $4.00+ gas it isn't very surprising that demand for hybrid vehicles is on the rise. Thus, one might imagine that automakers would increase production of their hybrids, as Toyota has done year after year. Yet, despite Escape hybrid success, Ford has no plans to increase Escape hybrid production, which is about 25,000 hybrids per year.

Certainly, since Ford leases some hybrid technology from Toyota, it isn't surprising that Ford isn't as bullish on hybrids as Toyota. Still, when you can't seize upon success, what's the point? Just green buzz? A few CAFE credits?

The Escape hybrid is a great SUV, too bad Ford doesn't think so.

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2 Comments:

Blogger Will said...

http://www.autobloggreen.com/2008/05/16/why-is-ford-only-building-25-000-hybrid-escapes-and-mariners-thi/

9:27 AM  
Blogger Dahcredyns said...

I don't buy Sam's argument in that post, even though it might actually be what Ford believes.

It is exactly that same kind of short term thinking that got Ford in trouble in the first place.

Had Ford been a little more aggressive a year or two ago, when it was basically just as hard to buy an Escape hybrid than it is now - although it was cheaper then - Ford dealerships would be buzzing. Nothing helps an automaker more than a hot-selling car.

Ultimately, I don't think you can monetize a halo effect, as it appears Ford is trying to do. When you show leadership, consumers follow. Ford is showing NO leadership.

Squeezing every bit of profit today at the expense of tomorrow will only lead Ford right back to where it is today, in trouble.

Ford has talked the talk regarding hybrids for years now, but there has been little walk behind that talk. That kind of business model is dead and Ford is proof of that fact.

So, again, I ask why did Ford make the Escape hybrid? Just for a halo effect? Just for CAFE credits?

9:49 AM  

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