In an attempt to reduce complexity, Ford’s CEO, Alam Mulally, announced a slashing of the available equipment combinations on 2009 model year vehicles in Ford’s stable. The cuts will reportedly reduce vehicle order combinations by 50 percent.
Vehicles of all nameplates will have less optional equipment and more standard features, the logic being to offer the customers what they want, instead of having dealers slash prices and offer other incentives to get a prospective buyer into a vehicle that doesn’t exactly fit their needs and wants.
When Ford’s luxury division — Lincoln — sold the LS (which was discontinued in 2006), it was available in 50,000 different combinations. In contrast, the all-new Lincoln MKS will be available in about 300. Moreover, the MKS will only have three major option packages and six standalone options.
Ford is using existing sales data to determine what content combinations are most popular, and amp up or reduce production of such models appropriately, according to Automotive News. Also, Ford is asking dealers for input on what sells best in their areas, and developing software to help dealers order what the company believes are the best selling combinations.
The expected benefits Ford expects are numerous. For one, dealers will be more likely to stock models that customers actually want, reducing inventory expenses and saving money by not having to offer incentives by pushing an aging model out the door. On the assembly line, Ford can cut manufacturing costs and focus on quality thanks to the reduced numbers of variations being produced.
The move should also speed up the buying process, as dealers want to sell what they have on the lot, and not have a customer take up valuable time by filling out a custom-order sheet.
Ford also believes the changes will better help them compete against foreign marques. Automakers such as Toyota, Honda and Nissan have typically offered fewer options and more standard equipment in order to simplify the ordering process. In recent years, General Motors has also reduced the number of possible combinations throughout its lineup.
02/18, 10:45 AM
posted by:
casualobserver
oh, what the heck..FIRST!
02/18, 11:04 AM
posted by:
livelyjay
I can see this as benefiting Ford in the long run. Toyota, Honda, Mazda, Hyundai all offer limited options packages. The only problem with this is if the vehicle doesn’t come standard with AC, PW, and PL the customer will have to fork out a lot of an option package that might have MORE than they want.
02/18, 11:08 AM
posted by:
johnnycanuck
That’s it, Mulally. Be the buyer…be the Buyer.
02/18, 11:12 AM
posted by:
Fletch
Once again, Ford last to implement this practice.
02/18, 11:15 AM
posted by:
pezones
wheres the option i can check off to get all the euro models
02/18, 11:38 AM
posted by:
cookie4me
Renaming the Verve to Fiesta, was the introduction of “The Way Back” plan. I don’t see this fitting into that plan.
02/18, 11:50 AM
posted by:
DrFill
Sounds like Ford is stepping up into the 1980’s and using a real plan model option matrix.
Welcome aboard!
DrFill
02/18, 11:51 AM
posted by:
RicardoHead
50,000 different combinations? Mullaly, does that marketing genius still have a job?
02/18, 11:54 AM
posted by:
pezones
“You can have any color you want, as long as it’s black.” -henry ford
02/18, 11:54 AM
posted by:
corvette
just like usual ford still in the back of the pack.
02/18, 11:56 AM
posted by:
corvette
Pezones.
“People can have the Model T in any color – so long as it’s black.”
- Henry Ford
02/18, 11:58 AM
posted by:
mujician
I’m sure pw,pl,a/c, cruise, side airbags, cd. etc… will all be standard as they already are. I think it’s a good idea but yet again one of the last to do this even though they already do it on their lincoln line.
02/18, 12:01 PM
posted by:
sunshine1810
Here’s a great idea for Ford. Why don’t they sell their cars from Europe in America like the Mondeo.
02/18, 12:47 PM
posted by:
planet_drive
Fords are just wrong every way you look at them lol
02/18, 1:22 PM
posted by:
davidg1977
my father worked for OTD (order to delivery) as a special project in 1996 and they were working on this… the Taurus at the time had more than the 50k LS’s that they cite in the article above.
This has been a popular topic inside the glass house for many years with funding to look into it but never any execution. This was the lead them to a more predictive model of “wants” and in turn, decrease the order-to-delivery timeframe thus making the customer happy by having on the lot what they will want.
Big on plans, low on execution… now need to execute on it. Maybe from the cradle with this intent, is the only way to do it…
02/18, 4:13 PM
posted by:
jayjc08
What would Vonage say?
“You’ve been bundled!”
02/18, 6:28 PM
posted by:
Blakkarr
Yes K.I.S.S. (Keep It Simple, Stupid)
Choose the basic vehicle three or four general trim levels. These include basics like the engine, tranny, drivetrain, and suspensions choices. You don’t get to pick and choose without paying a premium.
Then the equipment package… You can omit the superfluous nav system if you wish to save a couple grand. Only three or four levels here too.
Then the interior package… Pick your color. Go nuts. But keep the colors count limited to ten or less, two or three seat options (cloth, leather, combination)… and for pity’s sake the floor mats are standard equipment ALWAYS!
02/18, 6:42 PM
posted by:
mujician
Ah, you know. Just been hangin low, waiting for the perfect time to strike…
02/18, 6:53 PM
posted by:
autonut
The only one exec who was fired was Nasser. He openly admitted that Ford FOOBAR. It is easier in corporate world to agree with your master(s) and masturbate in a corner quietly. Hence 50,000 options. Do you need Harvard MBA to figure out that this is beyond wrong?
02/18, 7:25 PM
posted by:
bcjohnso99
Way to go Ford, follow the Jap’s stupid policies. Ever try to buy a Honda or Toyota with cruise control? They package in with totally unrelated crap I’d care not to pay for. It’s like they think it’s a luxury feature.
Only one problem Ford: Honda and Toyota’s followers are too f’in blind to question it. I dare say you might not be so fortunate.
02/19, 12:37 AM
posted by:
jdasch1
Nobody orders cars anymore, they buy them as they sit on the lots. That being said, this is the reason Honda for one has no problem selling every vehicle they make without rebates and fleet sales/rental cars. Too many variations in ordering leads to bastard vehicles left on the lots at years end. For example..the current Ford Ranger has 700,000 ordering configurations. It had 1.2 million in 2005. They want to get it to 480,000 possibilities by 2009. So this is good. Less is better when it comes to bull**** stand alone options like back up sensors and heated seats. Just make them standard, and all will be fine.
02/21, 10:15 AM
posted by:
jackjimturkey
how about some a la carte?
Pezones: That box would make a lot of americans happy