The American hybrid landscape is shifting under our feet.
With the perceptible movement of a slow landslide, Ford hybrid sales have been dramatically increasing over the last year—sales in September were up 73% from last September. According to Automotive News (subs. req’d), this brings Ford within a few thousand units of overtaking Honda to become the second largest seller of hybrids in America.
These numbers are significant because, according to Ford hybrid marketing manager David Finnegan, “More than 60 percent of Fusion Hybrid sales have been from non-Ford owners, and more than half of those are customers coming from import brands, mostly from Toyota and Honda.”
Confirming Finnegan’s assessment, the established hybrid juggernaut, Toyota, has seen sales of its hybrids plummet 28% in the same time period. Toyota still blows all the hybrid competition out of the water—capturing nearly 66% of all US hybrid sales—but the speed with which the changes are taking place certainly bodes well for a healthy and competitive hybrid marketplace in the future.
Ford’s sales increases have been driven mostly by favorable reviews of the new Ford Fusion Hybrid (AKA Mercury Milan Hybrid), but the venerable Escape Hybrid has seen upticks in sales as well. With the introduction of the 2010 Fusion, Ford has seen a 132% increase in overall Fusion sales in the last year.
Customers shopping for new hybrids have been lured to the Fusion Hybrid over competing models such as the Toyota Camry Hybrid due to superior mileage numbers and increasing confidence in Ford build quality. The Fusion Hybrid is certified by the EPA at 41 mpg in the city and 36 mpg on the highway, beating the Camry hybrid by 8 mpg in the city and 2 mpg on the highway.
For a long time now, it has been sad to see US automakers constantly loose market share to virtually everybody else (admittedly deserved by US auto execs). And as it was happening, I often looked on perplexed by what I was seeing—to me, it felt like the US automakers had a death wish. They simply weren’t making many cars that were worth buying. Sure, they were making pretty good SUVs and trucks, but they were becoming far to specialized in that area to remain secure.
But Ford, lone Ford, under the leadership of former Boeing exec Alan Mulally, began making important changes years ago which have, for the most part, shielded it from the same fate as the major disasters we now know as GM and Chrysler. And now the fruits of their efforts are showing. There was a point not too long ago I would never have considered buying a passenger car from an American auto maker, but I think I can safely say that time has now passed.
Sources: Automotive News, Ford Press Release
Image Credit: Ford
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I would give the lion’s share of the credit to consumer demand for high mileage cars, specifically for an American made high mileage car. Car purchases are made largely on status. People are finally competing on a metric that has positive environmental impact, or less damaging impact, depending on how you see it. Now, if only solar panels would become desirable and affordable for the same reason.
I would not give Mulally much credit for the hybrid success. That wasn’t his idea. His big idea upon arrival was to resurrect the Taurus logo (stick it on another car).
http://www.usatoday.com/money/autos/2007-02-06-taurus_x.htm
I would give the lion’s share of the credit to consumer demand for high mileage cars, specifically for an American made high mileage car. Car purchases are made largely on status. People are finally competing on a metric that has positive environmental impact, or less damaging impact, depending on how you see it. Now, if only solar panels would become desirable and affordable for the same reason.
I would not give Mulally much credit for the hybrid success. That wasn’t his idea. His big idea upon arrival was to resurrect the Taurus logo (stick it on another car).
http://www.usatoday.com/money/autos/2007-02-06-taurus_x.htm
Russ,
What I was referring to with Mulally’s leadership was his decision in 2006 to finance $23 billion to start making changes to bring the Ford lineup more in line with changing worldwide consumer demand—-which included making global small car platforms and diversification of vehicle types. The decision to take such a risk was made even before the bottom fell out of the auto industry and SUV sales were still strong. At the time Mulally was seen as taking too large a risk by many, but he persevered and the company has reaped the benefits.
Possibly so, but Ford was sinking at the time. They had to do something. The gamble paid off. Gambling does not always pay off. It is a poor way to run a company.
CEOs, like presidents, don’t usually come up with ideas. They approve or disapprove of them. On ther rare occasion when they do come up with ideas (like sticking Taurus logos on some car in the line), nobody tells them they are stupid ones.
Toyota bet on the Prius, but it wasn’t a do or die, last minute hail Mary kind of bet.
Boeing is famous for pulling itself out of the flames with last minute bets. Not sure they will do it again with the 787 fail. If he hadn’t jumped ship he might be sitting on top of a steaming pile right now.
Possibly so, but Ford was sinking at the time. They had to do something. The gamble paid off. Gambling does not always pay off. It is a poor way to run a company.
CEOs, like presidents, don’t usually come up with ideas. They approve or disapprove of them. On ther rare occasion when they do come up with ideas (like sticking Taurus logos on some car in the line), nobody tells them they are stupid ones.
Toyota bet on the Prius, but it wasn’t a do or die, last minute hail Mary kind of bet.
Boeing is famous for pulling itself out of the flames with last minute bets. Not sure they will do it again with the 787 fail. If he hadn’t jumped ship he might be sitting on top of a steaming pile right now.
Taurus eh…
Name brand recognition… No, more like TaurAss – as in the cars were such POS that you felt as if the dealership was going to rip you a new one when you got the bill for repairs… everyone I know that has owned a Taurus totally regretted buying one.
Taurus eh…
Name brand recognition… No, more like TaurAss – as in the cars were such POS that you felt as if the dealership was going to rip you a new one when you got the bill for repairs… everyone I know that has owned a Taurus totally regretted buying one.