Mercy Killing: Ford Euthanizes Freestar Ahead Of Schedule
Ford has permanently ended production of its Freestar minivan in its Oakville, Ontario plant. The slow-selling model has been nixed at a time when many believe the segment is eroding (General Motors is killing off its lineup of minivans as well), but by most accounts, the model (and its Mercury twin, the Monterey) was never terribly competitive.
The company actually halted production of the model in November, but it was thought that they might restart production, if only to bulk up inventory for fleet sales. Ford will instead focus on building its new Edge and Lincoln MKX models in the plant instead, models that the Blue Oval says have met with strong initial demand. If the company had resumed Freestar production for 2007 (as planned), it would apparently have crimped the output of its new crossovers, a move it didn’t want to make.
Between January and November of 2006, Ford managed to shift just 49,241 Freestars, which is around a quarter of the number of units DaimlerChrysler has shifted of its minivans.
+ Bloomberg: Ford Quits Minivan Market, Ends Freestar Production (Update1)
+ Read up on Ford's hot-selling new Edge by clicking here for our full road test!
Comments
Reilly Brennan
GM and Ford have decided that you can't make money or build a successful brand with minivans. However, it's still a big segment and a feel-good one at that.
Honda, Toyota, Mazda, Kia, Hyundai, and (especially) DCX must be wrong, apparently.
Mark M
Well, as you probably know Reilly, Mazda is pulling the MPV out of the market this year as well. Replacing it with the CX-7/CX-9/Tribute for at least a 1-year gap before potentially returning the MPV to market. I really don't see much a need for the already poor-selling MPV in a market that now has a Mazda5 and the CX-7/CX-9/Tribute as well. There's already significant overlap in those latter 3 models as is with an MPV further confusing the market and cannibalizing sales. So I question whether we'll see the MPV return at all and/or question Mazda's desire to do so.
As for all the others you mentioned, I don't believe any of them have Crossover models. At least not strong ones that I can think off the top of my head (DCX has the poor-selling Pacifica). Therefore they don't have to worry about model cannibalization. With Ford and GM going Crossover Crazy, they've decided it's better to give up the ghost on one model than risk 2 poor-selling ones.
Oddly enough, the one major contender that you didn't mention is Nissan. And that manufacturer has proven that Minivans and Crossovers CAN co-exist with both the Quest and the Murano doing rather well. Even more remarkable considering Ghosn's penchant for platform consolidation and not making any models that aren't absolutely necessary to cover the market.
The question is, "Will former-Freestar owners want an Edge?" I don't know. But I'd argue that Ford did so badly on the Freestart that even moving to the cheaper Kia Sedona would be an upgrade compared to what they had.
In regards to Ford specifically, if Ford went back to a RWD platform (a la the Aerostar) or even AWD they might have something that would serve as a worthy differentiator in the market. I could see a minivan with a moderate towing capability having a small, but sizeable niche in the market. We're seeing the market move towards Crossovers from both Minivans and SUVs, but almost all the Crossovers are car-based (and *shudder* even the Explorer may be soon) and really aren't filling the needs of that market either.
GM has never done well in that market. I wanna say it maxxed out at only 7% of the minivan market and that was a long time ago.
But both will need to do more than they have lately. The Freestar was an outright embarassment. It probably embodied just about everything that Ford was doing WRONG the past 5-10 years (bested only perhaps by the new Escape which has gotten very poor initial reception from the auto journalists). And the Equinox. I shudder just thinking about its' external appearance. If ever there were models created just for fleet sales, those were the ones.
Steve
^^you have some very valid points, but you are overlooking one major thing.
Ford is seemingly running out of money, and therefore R&D is suffering. They have never really had a strong design staff (as evidenced by there current production line up). Maybe by condensing their product line it will free up some capital to go into the design department. For Fords sake, I hope they come out with something interesting soon, or they will end up like Isuzu in the US market, and only sell trucks and SUV's.
I have yet to see anything (Mustang not included) that really strikes me as exciting from Ford in a LONG time.
LandCrusher
Fords truck line up a few years ago was hailed as a big design coup, but everyone caught up fast.
The overseas version of the focus looks good and sells well - why we can't get it is just stupidity.
The Mustang is good looking.
IMHO, all they need to do is figure out a way to make the Land Rover Defender a true world car:
Chinese built version much like the older series with smaller diesel and simpler suspension. Make it Cheap, make it the Model T of China.
UK built prestige version for the US upper market with all the goodies and LR style.
US built Bronco version with retro sheet metal, reasonable engine size and more street tuned. Not so much cheap as economical. The enthusiasts can add all the 4x4 parts and goodies they want. Or, build the Rubicon competition themselves if they want.
Seriously, Jeep can't make enough of the new Jeeps, and none of the other small utes are masculine at all anymore. They will sell a million of them, no exageration at all.
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