2013 Brings Possible New Opportunity For GM & Ford

[Perian]

Detroit Free Press

Automotive News

January 7, 2013

Article Quotes:

The good news is that as 2013 begins, Ford finally should be in a position to realize the benefits of all the money it invested in new products during the recession under CEO Alan Mulally's global One Ford plan.

Here's a rundown of the 2012 results, and 2013 outlook, for some of Ford's critical new vehicles.

Fusion: The new Fusion, widely praised by many reviewers, is still in the launch phase and has yet to hit its stride in the market. Sales of the Fusion dropped 3 percent in 2012 as Ford phased out the old model to make way for the redesigned 2013 version. The company is so confident about the appeal of the 2013 Fusion that it's adding production at a second factory, in Flat Rock, Mich., in the second half of the year.

Escape: The Escape compact SUV notched its all-time record sales year in 2012 with a 3 percent increase to 261,008 units, making it second in the Ford lineup in unit sales to the F-series pickup. The Escape continued to sell well despite four recalls.

C-Max: Ford introduced a third major vehicle in 2012: the C-Max Hybrid, built on Ford's global C platform, which it shares with the Focus.

The C-Max has exceeded Ford's expectations so far with sales of 13,309 since the fourth-quarter launch.

Focus: After a slow start following its 2011 redesign, Focus sales soared 40 percent in 2012, making it by far the fastest-growing Ford-brand light vehicle.

The automaker's only other vehicles to post stronger sales gains in 2012 than the industry's 13 percent were the Ford Mustang, up 18 percent; the Ford Explorer, up 21 percent; and the Lincoln MKT, up 41 percent.

F series: The F-series pickup continued its run as the best-selling vehicle in America.

Lincoln: Lincoln dealers are eagerly awaiting the 2013 MKZ, which is just now arriving in showrooms, later than most dealers had hoped.

If Ford can put its recent launch and quality problems in the rear-view mirror and straighten out balky electronics systems such as MyFord Touch, the company can reap the rewards of Mulally's ambitious and money-saving One Ford global platform plan.

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General Motors, which has focused on maximizing profits and keeping production in line with sales, knows analysts and industry pundits want to see evidence that it can take sales away from competitors.

Last year, GM's U.S. market share sagged to 17.9% as Toyota and Honda regained ground lost in 2011 when an earthquake and tsunami devastated some Japanese suppliers and forced them to make fewer vehicles.

"This is a trend line we will keep an eye on," said Jesse Toprak, senior analyst for TrueCar.com. "GM can't sustain this loss of market share."

In 2013, GM plans to launch 12 new or significantly updated models, including the Chevrolet Corvette, Impala and Silverado, three new Buicks and two new Cadillacs.

"We are setting the stage here ... to launch the biggest product portfolio initiative in General Motors history," said Mark Reuss, president of GM North America.

[Perian]

It is said that Wall Street is a predictor of future economic performance.

Based on the stock performances of GM and Ford during the past few weeks, 2013 could be a good year for both. A very good year.

I plan on purchasing two vehicles in late 2013, replacing my Acadia and Saab.

Anyone else?

[BlackGTP]

Let's hope the economy continues building so that GM and Ford can continue their growth. Loosing the 2% medicare decrease might have an impact - hopefully not big.....

[Al465]

My question is, are consumers smart enough to know about Ford's and GM's new products being as good and in many cases, better than foreigns? Many are hung up with Toyota's and Honda's no matter how bad their products are. It's sad but true. The media has to stop hammering inferior negativities of American companies. Consumer Reports is a major one. An example of that is my brother-in-law knows nothing about cars so he depends what CR says. Today he regrets not buying an Equinox over a Honda because of less interior noise and better gas mileage on the Equinox. I just hope GM gets better ads.

[ponchoman49]

It is said that Wall Street is a predictor of future economic performance.

Based on the stock performances of GM and Ford during the past few weeks, 2013 could be a good year for both. A very good year.

I plan on purchasing two vehicles in late 2013, replacing my Acadia and Saab.

Anyone else?

Some of this will depend on the housing and job markets. Also if crude oil spikes again and stays high then that will have a negative impact. 2013 starts with folks losing the stimulus in there pay checks and certain taxes are going up. If the consumer feels too much squeeze then they will react and spend less.

[CrunkedRL]

My question is, are consumers smart enough to know about Ford's and GM's new products being as good and in many cases, better than foreigns? Many are hung up with Toyota's and Honda's no matter how bad their products are. It's sad but true. The media has to stop hammering inferior negativities of American companies. Consumer Reports is a major one. An example of that is my brother-in-law knows nothing about cars so he depends what CR says. Today he regrets not buying an Equinox over a Honda because of less interior noise and better gas mileage on the Equinox. I just hope GM gets better ads.

I think consumers are a lot more saavy now than they've ever been and this has translated into a number of conquest buyers coming to both Ford and GM from foreign brands. The only thing these two companies were lacking up until fairly recently was viable products which precluded many consumers from making a purchase.

[Orbit Orange]

Let's hope the economy continues building so that GM and Ford can continue their growth. Loosing the 2% medicare decrease might have an impact - hopefully not big.....

A 2% pay cut won't help, thats for sure.

[roy219]

My question is, are consumers smart enough to know about Ford's and GM's new products being as good and in many cases, better than foreigns?

I think it's fair to say that consumers are cognizant of quality products from all automakers. An issue for Ford and GM is that while some products in their respective vehicle lineups are class leading or close to it, more lag behind "foreign" competition in one way or another.

Some of GM's and Ford's best products are also among the best selling vehicles in the USA: F-Series, Silverado, and Sierra pickup trucks are the most prominent among these. The Traverse, Acadia, and Enclave along with the Cadillac ATS & CTS are also very competitive products with lower but still good sales numbers.

Other class leading GM and Ford products, like the Avalanche and Flex, have a very satisfied but relatively small owner base.

[steve333]

It is said that Wall Street is a predictor of future economic performance.

Based on the stock performances of GM and Ford during the past few weeks, 2013 could be a good year for both. A very good year.

I plan on purchasing two vehicles in late 2013, replacing my Acadia and Saab.

Anyone else?

I plan on buying a new car at the end of this year. I was planning on buying one a month ago but was not impressed with what was out there in the Compact market except for the Subaru Impreza so I decided to wait another year hoping to buy domestic.
If GM fixes the issues with the Cruze and improves it I will get one, otherwise I'm going for the Impreza or Focus if the tranny issues have been fixed.

[AMcA]

Let's hope the economy continues building so that GM and Ford can continue their growth. Loosing the 2% medicare decrease might have an impact - hopefully not big.....

My hope is GM's cost structure is ready to survive a big downturn. Taxes are going up, and the economy is going to be shaky until those idiots in Washington can solve the nation's fiscal problem before we have a bond crisis. Or, barring a bond crisis, before interest rates rise to the level where the Federal budget starts going 25% to paying interest on the national debt. Either of those scenarios totally screw the economy, and only the lean will survive.

[hunchman]

My hope is GM's cost structure is ready to survive a big downturn. Taxes are going up, and the economy is going to be shaky until those idiots in Washington can solve the nation's fiscal problem before we have a bond crisis. Or, barring a bond crisis, before interest rates rise to the level where the Federal budget starts going 25% to paying interest on the national debt. Either of those scenarios totally screw the economy, and only the lean will survive.

The DOW is at 13 000+, oil has been around a 90+ a barrel for over a year now and gold is at a crazy 1600+. The economy is in great shape. The money pigs on wall street want you to live in fear so they can soak up the easy money that's laying all over the place.

[BlackGTP]

The DOW is at 13 000+, oil has been around a 90+ a barrel for over a year now and gold is at a crazy 1600+. The economy is in great shape. The money pigs on wall street want you to live in fear so they can soak up the easy money that's laying all over the place.

But those are all indicators of how the well to do are doing. For the average Joe $90 a barrel is still too high, gold has zero (plus a high gold price means the wealthy are expecting inflation) impact and the Dow also zero impact (or minimal). All the average guy has is a two percent decrease in takehome pay, high heating oil costs (if unlucky enough to have oil heat). The average guy is most likely who is buying a lot of the cars.

[RoyG]

Watch what happens to their earnings, esp FOMOCO. If sales pick up even a little bit then earnings should go through the roof. GM needs solid launch and sales of the Silvy and GMC trucks.

[roy219]

All the average guy has is a two percent decrease in takehome pay, high heating oil costs (if unlucky enough to have oil heat). The average guy is most likely who is buying a lot of the cars.

The "average guy" in that context is more likely to purchase used cars than new.

[Engelman]

Here's hoping those replacements are GM vehicles.............

It is said that Wall Street is a predictor of future economic performance.

Based on the stock performances of GM and Ford during the past few weeks, 2013 could be a good year for both. A very good year.

I plan on purchasing two vehicles in late 2013, replacing my Acadia and Saab.

Anyone else?