Why didn t Ford cut the price?

Mondo Digital Updated on 2024-01-31

This year, the mainstream joint venture brands in the market, such as Volkswagen, Toyota, Honda, etc., have performed quite eye-catching, and they are as eye-catching as lifting the table and roof on the stage. However, some brands that like to fight the best war have quieted down, the most typical example of which is Changan Ford. If you've been following the brand, it might feel a little strange because, despite the fact that a year has passed, the Explorer's discount margin is still quite limited, stable at around 20,000, as if to tell consumers: love to buy or not.

It's been two years since the Mondeo went on the market, but it's only a little over 20,000 discounts. In contrast, B-class cars of the same level have already begun to sell off, and even the Accord, which has just been replaced this year, has given a discount of 50,000 to 60,000 yuan. Mondeo, however, has always maintained this unhurried tone.

There are two main reasons why Changan Ford did not participate in the first war. First of all, their new products have unique selling points. Whether it's a Mondeo or an explorer, they all have a charm like no other. As a standard B-class car, the Mondeo has good appearance, sports handling and space performance, and is deeply loved by young consumers. The Explorer, on the other hand, is destined to become a niche choice with its Ward's top 10 engines and the same 10AT gearbox as the Raptor.

Secondly, Ford also takes into account the interests of dealers. Whether it is the incident of Toyota dealers jointly writing a letter to sue manufacturers for reducing inventory this year, or the situation of a number of joint venture brand 4S stores in various places being withdrawn and closed one after another, it shows that automobile OEMs and dealers are standing at a crossroads. When the market environment is good, the inventory may be bearable, but when the market environment is not good, the inventory pressure is like the life of the dealer. In order not to get dealers into trouble, Ford lowered pricing and reduced production, which allowed dealers to remain profitable. Although sales have declined, each car can bring profits, and this small but beautiful business model has also been recognized by dealers.

Looking ahead, it is expected that more joint venture brands will pursue this small and beautiful business state, and excessive inventory pressure will become less and less common. We will continue to monitor the movements of the two brands, Volkswagen and Toyota, as their operations next year will directly affect the entire joint venture market and terminals**.

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