Byline: Amy Wilson
The Ford brand plans to simplify the way it packages vehicles, starting with some new and updated 2007 models.
Changes include:
* Reducing the number of trim lines.
* Putting more standard equipment in base models.
* Allowing more features, such as leather seats, to be ordered as stand-alone options rather than as part of a pricey equipment package.
The approach aims to reduce manufacturing and ordering complexity. It also is expected to speed the turnover of inventory, Ford officials say.
The simplified packaging debuted with the 2007 Ford Explorer Sport Trac, which went on sale in late February. Details about packaging and pricing of some other 2007 models are expected to be shared with dealers as early as this week.
It's likely Ford will use the approach for the new 2007 Ford Edge crossover and re-engineered 2007 Expedition.
'The ordering gets a lot easier,'' says Barry Redler, SUV group marketing manager for the Ford brand. 'It's a lot easier on the dealers for sure, and it's more simple for the customer to buy one. It's easier to stock, it's easier to sell, and it's easier to buy.''
Ford nameplates, especially trucks, typically have had several trim lines. For example, the previous-generation Sport Trac had four. But only two are offered on the 2007 Sport Trac: an XLT and a Limited.
Ford kept the Sport Trac base price steady at $24,940, including shipping. But for the same price, it added content, including cruise control, power mirrors, side airbags and stability control.
Crowded showroom
The approach also should help Ford and dealers better differentiate individual nameplates in a showroom that will be swimming with SUVs and crossovers, Redler says. Come this fall, the Ford showroom is expected to have the Escape, Edge, Freestyle, Explorer, Explorer Sport Trac, Expedition and extended Expedition EL all competing in that territory.
An array of trim lines and option packages made more sense when single nameplates sold 300,000 or 400,000 units annually, Redler says. But the proliferation of nameplates and more competition in the industry has reduced nameplate volumes.
Stalwart entries such as the Explorer have gone from selling as many as 507,091 in 1999 to 239,788 in 2005. New models such as the Edge are expected to sell half that.
'Do you need the same number of series for a vehicle line at 300,000 (units) as you do at 100,000?'' Redler says. 'The market becomes made up of niches that are smaller in volume. You don't need all those series to cover the market.''
Better for dealers
Wade Walker, president of Walker Ford in Montpelier, Vt., says simplified packaging should make it easier to stock the most popular models, control inventory and reduce floorplanning costs.
'They'd make it easier on the consumer to understand packages,'' Walker says. 'It won't make every consumer happy, but it will make it easier for dealers to trade within their market area.''
Some consumers may think they have less flexibility to order the exact model they want. But in reality, Walker says, most consumers buy the factory-designed packages anyway.
* * *
From 4 to 2
2005 Sport Trac
Trim line: Base price*
XLS: $24,940
XLT: $26,195
XLT Premium: $28,630
Adrenalin: $29,430
2007 Sport Trac
XLT: $24,940
Limited: $26,540
*Includes shipping
Note: Ford did not build a 2006 Sport Trac.
Source: Ford Motor Co.
CAPTION(S):
The Ford Edge: Part of the plan
