[Mr_Pringle]

Dealer bidding war starts for Ford GT
By Eric Mayne / The Detroit News

LOS ANGELES — Chalk up another Ford Motor Co. victory over Ferrari.

When Ford’s 500-hp GT supercar arrives in dealer showrooms next summer, its base sticker price will be $139,995 — about $14,000 less than the Ferrari 360 Modena against which the Ford two-seater was benchmarked.

The automaker’s 3,850 dealers are waiting — many with orders in hand — to see who will get one of the 3,500 units Ford plans to build before the GT goes out of production in 2005.

Ford will decide which dealers will be allowed to sell the car by the end of the first quarter, said Martin Collins, Ford division general marketing manager.

(Full story here)

 

[awalbert88]

I think that's 2007, not 2005. Somebody wasn't paying attention when the wrote the article.

I just hope a dealer nearby me gets a GT and keeps it in the showroom for a few weeks. I really would like to get the chance to check one out in person when they arrive at dealerships.

 

[LegendNH]

can someone please explain to me why Ford can't make 10,000 or 20,000 of these cars if so many people want them? I just don't understand why a company out to make a profit would limit something so many people are willing to buy.

If I had the money to buy a Ford GT I could care less about how many other people own one. This is an american car, made for the american buyer. Ford isn't a small production company like Ferrari that can only make a limited amount of cars. They have the ability to not only share parts with other cars but they also have the ability to create these cars by the thousands. If they can't up the production per year then why not expand the production of the car for say 10 or 15 years and share parts like the transmission, engine, frame, etc... with other cars like the mustang to reduce costs and make all their cars better.


*sigh* I will never understand why companies limit production when their obviously in the business to make money

 

[vetteman]

The reason Ford, or any other automaker for that matter, doesn't increase the production numbers is a simple business philosophy- supply and demand. That rule says that if the demand is high and supply is low, the PRICE can be HIGHER. Sure it would be easy to increase production to try to meet demand, but the price will come down. Think about how the first releases of a high demand new model command premiums over MSRP, but after the model has been produced in a greater quantity dealers begin to discount and the automakers add rebates (see "PT Cruiser"). It's not always as simple as increasing the supply to improve profitability.

 

[tgagneguam]

I think that if I were one of the few lucky people who could afford a GT, I would appreciate Ford's efforts at limiting the production numbers. It makes the car a true rarity and worth the wait and the $140,000 entry fee. Not every car needs to push numbers. And let's face it, even if Ford built 20,000 of them, it would have a miniscule effect on overall profits. Ford is one of the ten largest companies on the planet. A few million dollars more added to the bottomline is not going to make that much of a difference, particularly when it comes at the expense of a halo car's exclusivity.

Now the fabulous Mustang that I saw and read about in all its glory in yesterday's Motor Trend is a different story. Though I am not a Ford man, per se, Ford has done a very nice job with the new 'stang. So much so that it seems GM cannot resist the business case of a Camaro encore...

 

[TAFreak]

I'm pretty sure Ford isn't producing this car, Saleen is making it alongside their S7.

I'd rather have an S7 too.

 

[Mr_Pringle]

I doubt that the GT will directly add anything to Ford's profits. I may be wrong, but I figure that Ford loses money with every GT that they sell. I just can't see them recouping all their development costs with the sale of 3,500 cars @ $140,000. Once you take out the cost of materials and of production, I just don't see enough left for much else. But this car isn't about direct profit; it's about image-- indirect profit... but that's another story.

 

[awalbert88]

The Ford GT, if I remember correctly, is being hand built. There's also not that many people who can afford them. Lots of people would love to own one, but not many can afford to -- just like the Viper.

 

[thehemi]

The car is obviously meant to spruce the Ford image.
How many times do Fords get compared with Ferraris?

If it was not for the new Mustang GT, I would not have
any reason at all to show up at my Ford dealership.

 

[LegendNH]

Originally posted by vetteman@Dec 31 2003, 10:23 AM
The reason Ford, or any other automaker for that matter, doesn't increase the production numbers is a simple business philosophy- supply and demand. That rule says that if the demand is high and supply is low, the PRICE can be HIGHER. Sure it would be easy to increase production to try to meet demand, but the price will come down. Think about how the first releases of a high demand new model command premiums over MSRP, but after the model has been produced in a greater quantity dealers begin to discount and the automakers add rebates (see "PT Cruiser"). It's not always as simple as increasing the supply to improve profitability.

what you said is true, but with the increased demand, Ford doesn't really see any money. They sell the car for a certain price and if the demand is high enough the dealers are the ones who are going to make more money and not Ford.

 

[frenstall]

Originally posted by Mr_Pringle@Dec 31 2003, 03:49 PM
I doubt that the GT will directly add anything to Ford's profits. I may be wrong, but I figure that Ford loses money with every GT that they sell. I just can't see them recouping all their development costs with the sale of 3,500 cars @ $140,000. Once you take out the cost of materials and of production, I just don't see enough left for much else. But this car isn't about direct profit; it's about image-- indirect profit... but that's another story.

It was quoted that to coincide with their new philosophy of only producing vehicles that generate a profit, the Ford GT does in fact earn Ford money, although I would imagine this profit is teetering on zero. The vehicle is a limited time, limited production model ment to get people excited about Ford again.

Actually profit is so minimal that it will be cancelled in 3yrs because new bumper regulations will cost too much to implement.