Last post on Jul 07, 2005 at 2:47 PM
You are in the Pickups - Archived Discussions
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Nissan Titan, Ford F-150, Exterior, Engine, Interior, Transmission, Truck
#82 of 1169 incentives
Dec 08, 2003 (3:56 pm)
1st -wasn't the initial incentive for previous Ford owners and people trading in GM & Dodge full size?
2nd - The story quoted only said what I said in my post. Any previous rebates were for what I mentioned in1 above. As to everybody new it was coming - like who said it was coming this soon? Analysts thought they would eventually need them, but right away? Ford themselves have said they wanted to stay away from the incentive game with the new F150 for many reasons; the first being it costs more to make the new F150 than the old and the margins are less!
But nobody thinks that Nissan announcing the pricing of the Titan at a cheaper price had anything to do with it? It is just a thought.
Also, think about it, the F150 in November of 2003 only had a 10% increase over Nov 2002. With the heavily incented, and plentiful, 2003 F150 around, and only a total 23,000 between the two? The Ford dealer in my town has at least 40 2003 on the lot right now, and they sold many over the last while - I know 2 people who bought the F150 2003 in nov because of the great price.
I don't buy they put incentives on because they are selling so well! Sorry.
Dec 08, 2003 (6:04 pm)
Earlier this week I read the factory is considering going onto a third over-time shift to keep up with demands. Therefore, it is selling extremly well. Out of 3 factories producing F-150's, there's only one producing the new version. The other's have not ramped up yet till the spring and coming summer, those are now producing the Heritage version.
Dec 10, 2003 (10:46 am)
Who said anything about "put incentives on because they are selling so well!" Even from the direct quote you quoted, direct quote: " "We think these are modest incentives, and basically a sign of the success we've had in the marketplace," said Ford spokeswoman Karen Shaughnessy. " I got the impression that "modest incentives are a sign of success".
Ford said new F150 are selling very well, they are increasing the production, they are putting incentives on it. I came away thinking, they are trying to drive up the demand. Even if this promotion is only break even, the loss of profit by the incentive equals to the gain made on the extra units sold, Ford will be winning. They can claim that they "sold" more in Dec. and are gaining (or losing less) market share.
As to the new incentives have anything to do with the introduction of Titan, you bet they do. Look, every maker sold more full size pick ups in November than they did last year, yes, even the Tundra. Yet, they are adding new/more incentives. They are trying to cannibalize the demand, a preemptive strike, so to speak. Just like what others did to Ford back in August/September.
That all said, I still think Titan will be a success. 1. the full size PU segment is still booming; 2. Titan is a good product and Nissan's sales target is reasonable (maybe too low); 3. the pent up demand of a true truck for import lovers are too strong.
#85 of 1169 Incentives
Dec 10, 2003 (11:06 am)
"As to the new incentives have anything to do with the introduction of Titan, you bet they do."
I think this is not the case. People that are waiting to buy a Titan haven't in many cases even gotten to drive one yet, so Ford has no idea what kind of market share the Titan will take or build. If anything the incentives, which have been with the F-150 almost since launch, were started due to fierce competition from GM and Dodge. Not so much because Ford doesn't have a excellent new pick-up, but more because the incentives GM and Dodge models have are rather large.
I think the main crowd that Nissan will appeal to is those that are currently driving foreign products (i.e. Tundra). Sure there will be some customers coming over from the big three to the Titan, but IMHO, not in huge numbers. Anyway, only time will tell, and for the Titan time has just begun.
#86 of 1169 i dont buy it...
Dec 10, 2003 (3:37 pm)
for a second. sales are soooo good that they want to give some back?!?!?! whatever.
an incentive is for one reason, and one reason only. there is trouble somewhere. if the reason given is actual, then all they are doing is ruining the resale value even more.
Dec 10, 2003 (3:56 pm)
I'm confused, the nissan salespeople are complaining because Ford is offering a rebate on their truck?
Rebates are made for selling trucks. Selling more trucks makes the cost to build each truck go down. Is it a 1 to 1 ratio between the cost of rebates, vs the savings for building more trucks? Who knows, probably not, but in the end, people want the best truck for the money.
Maybe Nissan needs to give up some profit to make their truck more affordable/desirable?
#88 of 1169 nissan's profit...
Dec 10, 2003 (4:00 pm)
funny you mention that. nissan made the price point of the titan about $2500-$3000 LESS than the ford, for just such an occasion. the transaction prices should be in nissan's favor (lower).
#89 of 1169 I just know....
Dec 10, 2003 (4:46 pm)
I see the 04 F-150 everywhere around my town already. It's selling well. Incentives don't insult me, front end or back end, frankly. It's what we do over here. Just because Japan rarely does - doesn't make it evil. The customer wins, and if he has to give some of it back at trade in time, that's ok too. If you want great resale, you will pay for it up front. It all works out.
Dec 10, 2003 (5:26 pm)
Some good points all !
When the F150 came out in KCab's I thought Ford made a huge mistake. Most(>50%) people want Ccab's but it's like each dealer only got one token CCab. Sure enough, the KCab's collected. Now I'm seeing F150 Ccab's now accumulating.
I have to admit it's ironic seeing new '04 F150's lined up with new '03's they can't sell.
#91 of 1169 Trouble???
Dec 10, 2003 (5:38 pm)
Bowke28, you stated:
"an incentive is for one reason, and one reason only. there is trouble somewhere"
Says you I guess, but I disagree. But then what do I know. You're the dealer here.
I honestly don't think that Ford is extremely worried about the Titan being that large of a threat to F-150 sales. Only because Titan is a completely NEW product that is coming into a market loaded with very loyal customers. If anything the the new Tundra has the advantage over the Titan in taking away sales form the Big 3 in that it has been in the market longer to establish a market base.