Would Ford Be In Trouble IF $4 - 5 Gas Comes Back

[GPCharles]

My Ford Escape with the 4 cylinder, turbocharged engine averages 25 m.p.g.
On long highway drives it averages 30 m.p.g.

I wouldn't call that a gas guzzler.

[Honky Tonk]

My Ford Escape with the 4 cylinder, turbocharged engine averages 25 m.p.g.
On long highway drives it averages 30 m.p.g.

I wouldn't call that a gas guzzler.

Present company accepted. But there are plenty of people driving Triton V8's, or the GM equivalents, for no apparent reason.

[emu steve]

When you come to a fork in the road - take it.

Or pick it up, lest someone run over it and damage their tire...

[Scottathew]

I'm guessing they'll continue selling sedans at higher margins under the Lincoln label.

I just recently bought a used 2015 Hyundai Sonata, I'm very pleased with it.

[One Shot]

No
We the general public will be in trouble though

[Richard]

^ sooner then we think,a strong candidate for governor of Ohio is running on a platform of shutting down fracking which is playing a big part of keeping oil prices down.

[DetroiterOnTheWestCoast]

^ sooner then we think,a strong candidate for governor of Ohio is running on a platform of shutting down fracking which is playing a big part of keeping oil prices down.

Good for them! Tainted groundwater and earthquakes are not a sound investment

[Lowell]

The Escape is essentially a Fusion that sits a little higher, for what its worth. They get about the same MPG, although there is no electric Escape yet, but I think it's in the works for next year.

Why anyone would build or buy a sedan anyway. I wouldn't. For a little more metal and glass one has a useful vehicle that carries all the people a sedan does, usually one, while being versatile for porting large and odd shaped objects.

[Lowell]

I think the days of $2.50 - $3.50 gas are here forever. Downward pressure on prices is everywhere. The fracking revolution and other production efficiencies have seen to that. There are a huge number of capped low-margin wells waiting to come online when gas prices hit their profitability points. New reserves are constantly being identified by advanced geology and old reserves are being wrung out with new technologies.

The OPEC countries have plenty of excess production being held back by their member quotas. They are unlikely stand by and let non-members like the US suck up all those high prices sales. The world is awash in oil.

Meanwhile there is lessening demand. MPG on SUVs and trucks are what sedans used to be, and getting better.

Then there's elephant-in-the-room China, choking on pollution, and mandating the end of ICE vehicles. Much of Europe and Japan is going that way for economic [=they produce no oil] and eco reasons [climate concerns]. GM will have 15+ of them by 2022 and all the other companies are following suit.

If I'm playing the market long, I'm looking at electricity production, not oil.

[emu steve]

I think the days of $2.50 - $3.50 gas are here forever. Downward pressure on prices is everywhere. The fracking revolution and other production efficiencies have seen to that. There are a huge number of capped low-margin wells waiting to come online when gas prices hit their profitability points. New reserves are constantly being identified by advanced geology and old reserves are being wrung out with new technologies.

The OPEC countries have plenty of excess production being held back by their member quotas. They are unlikely stand by and let non-members like the US suck up all those high prices sales. The world is awash in oil.

Meanwhile there is lessening demand. MPG on SUVs and trucks are what sedans used to be, and getting better.

Then there's elephant-in-the-room China, choking on pollution, and mandating the end of ICE vehicles. Much of Europe and Japan is going that way for economic [=they produce no oil] and eco reasons [climate concerns]. GM will have 15+ of them by 2022 and all the other companies are following suit.

If I'm playing the market long, I'm looking at electricity production, not oil.

Excellent, Lowell.

L.A. cleaned up their smog problem. Now, it is time for China, India [[I think they have a big problem), etc.

Curious about details of China trying to do away with ICE vehicles.
I wasn't aware of it.

Countries which have pollution + plenty of sun really ought to move to renewal energy. China has no vested interest in supporting fossil fuels.

Implied in your comments, is the geopolitical situation with Europe, oil and Russia. Russia holds the oil and has Europe in a pickle...

I'm disappointed that the U.S. hasn't moved faster on renewables but it as much a political issue as energy issue. Oil and coal are favored in this country by certain political leaders... [[how about that for being understated, by not mentioning name and address of the leading proponent. Lol.).

[Zacha341]

How's about that. At this years NAIAS, I tested getting in and out of a couple of small SUV's, including one that was a mini-me of the Ford Escape.

It was great getting in and out of those, compared to many sedans! I want one!

Why anyone would build or buy a sedan anyway. I wouldn't. For a little more metal and glass one has a useful vehicle that carries all the people a sedan does, usually one, while being versatile for porting large and odd shaped objects.

[Dan Wesson]

My Ford Escape with the 4 cylinder, turbocharged engine averages 25 m.p.g.
On long highway drives it averages 30 m.p.g.

I wouldn't call that a gas guzzler.

My four cylinder Scion without a turbocharged engine gets 40 mpg.

[Zacha341]

^^^ I drive a V6 Cammy -- it's an older model and not fuel efficient any more, but I coast alot. Foot off gas where I can, allowing the momentum of car to keep going as I go down side streets or what not.

I once had a older Ford Taurus and it did not coast at all. If your foot was not pressing down hard on the gas it slowed to a dead stop fast. I'd not want to be driving that car now.

Dead-foot on the gas peddle days are gone. Not I ever drove that way.

[DetroiterOnTheWestCoast]

Excellent, Lowell.

L.A. cleaned up their smog problem. Now, it is time for China, India [[I think they have a big problem), etc.

It might not be as bad as it used to be, but I’d hardly say that it’s cleaned up.

[401don]

Why anyone would build or buy a sedan anyway. I wouldn't. For a little more metal and glass one has a useful vehicle that carries all the people a sedan does, usually one, while being versatile for porting large and odd shaped objects.

To each his own I guess. I absolutely hate crossovers. I prefer the handling and feel of being close to the road. I also prefer to keep stuff hidden in the trunk. My feeling is that a lot of the people switching to crossovers are the "me too" folks who do whatever their neighbors or trends tell them to do.

[jiminnm]

To each his own I guess. I absolutely hate crossovers. I prefer the handling and feel of being close to the road. I also prefer to keep stuff hidden in the trunk. My feeling is that a lot of the people switching to crossovers are the "me too" folks who do whatever their neighbors or trends tell them to do.

I agree with you. I have a sedan now and have always driven a sedan, coupe or convertible. I decided long ago that a station wagon wasn't for me and it still isn't [[despite what they are now called).

[Zacha341]

I used to think that sometimes seeing some struggling to get into some of the big-foot trucks. Almost crawling up to get into the taller units.

Safety and comfort are crucial for me. Not the 'me too' factor.

...My feeling is that a lot of the people switching to crossovers are the "me too" folks who do whatever their neighbors or trends tell them to do.

[Smirnoff]

Last Friday, we took an office poll to see if anyone owned a Ford on the list, nada......

[emu steve]

I'm not predicting $4 gasoline, but prices are arising...

https://www.cnbc.com/2018/05/15/why-...ne-summer.html

One of the financial implications of this is that a family with say 2 cars who might have gotten a $15 - 20 / week tax cut might see it mostly eaten up by increased gasoline prices.

Gas prices are up $0.50 per gallon and going higher. So $0.75 x [[say) 12 gallons per vehicle equals almost $10 week [[per vehicle) or say $20 for a 2-vehicle family. And that assume only 12 gallons per week. Many who drive big vehicles or more miles will do worse.

[K-slice]

IMO we are seeing the next step of Mulally's "one Ford" plan. The idea at the time was to do away with regional models, and make 100% global vehicles. Now that the line has standardized Ford can add and subtract individual vehicles in certain markets with relative ease. If compact cars come back into fashion here, they can start importing the Focus from other regions already making it. Much cheaper than having to engineer a whole new car which is what would have had to happen in the old days of the US only Focus and Escort.

Assuming Ford doesn't cut these lines globally I think it puts them in a stable position.

[emu steve]

All I can say about Ford and this thread is:

As the pace of change increases the probability that an enterprise [[e.g., Ford) makes mistakes as they seek to adapt to changing markets, technologies, etc. and the greater the rate of change, the greater the chances of these such mistakes.

EMU Steve 05/16/2018.

There will be winner and losers [[not every company gets a trophy) and I don't know if Ford, Tesla, etc. will be winners or losers...

[Cincinnati_Kid]

There will be winner and losers [[not every company gets a trophy) and I don't know if Ford, Tesla, etc. will be winners or losers...

I believe the winners will be car companies like Kia and Hyundai. They've already made significant in roads in sales in the US, by offering fuel efficient vehicles at reasonable prices.

[emu steve]

I believe the winners will be car companies like Kia and Hyundai. They've already made significant in roads in sales in the US, by offering fuel efficient vehicles at reasonable prices.

Okay.

One reason I chose Ford [[other than being the subject of this thread) is that it is Ford and Tesla are very dissimilar.

I would find it hard to believe that both Ford and Tesla will succeed unless it is possible for opposite strategies to succeed.