Ford to meet with dealers about future products, try to close stores

Ford to meet with dealers about future products, try to close stores

Filed under: Car Buying, Ford, Lincoln, Mercury

2008 has been a historically woeful year for the auto market, but Ford dealers have been in the crosshairs of a sales decline for over a decade. That brutal reality, along with financial incentives of up to $700,000 or more from the Blue Oval, has lead to the closure of over 500 dealers since mid-2006, and over 150 so far in 2008. To close still more dealers while giving remaining stores a heads-up of future happenings, Ford is embarking on a series of meetings with Ford and Lincoln Mercury dealers. Among the topics of discussion will be future products, product volume and market conditions.

Though Ford isn't stating publicly how many dealerships it wishes to close, the Blue Oval is hoping to have enough departures to make the remaining dealerships healthy. Ford would like to see Ford brand dealers with 1,500 sales per month and Lincoln Mercury dealers with 600 sales per month, which is far higher than what Ford's 3,900 stores are averaging now. To help entice dealers to hang up their plaid sport coats, Ford will be offering cash incentives, but Ford Market Representation Director David Kelleher is hinting that those deals won't last long.

[Source: Automotive News - sub. req'd, Photo by Scott Olson/Getty]

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Company Turns Familiar Gas Cars Into Electric Vehicles

How would you like to drive an all-electric Mini? An EV Smart Car? A PT Cruiser? With the help of Hybrid Technologies, you can. They’ve taken many familiar vehicles, ripped out their engines, and replaced them with lithium batteries and electric motors. On the surface it makes great sense and it seems there would be a huge demand for this sort of thing. Electric cars are nearly maintenance free. They don’t need oil changes and they have 90% fewer parts than gas cars. Plus, these EVs look like the normal cars that are already popular with many folks. Cool. How much will it cost? Glad you asked. How about a slick $40,000 for an all electric Toyota Yaris hatchback? Or $60,000 for the Mini? Come on now, I know you wanted that Beemer, but let’s be realistic, the price of gas is only rising and you never liked going to get oil changes anyways. Given the savings on fuel and maintenance, the company states that they believe their prices are “competitive” with other vehicles when looked at over a 7 to 10 year time frame. Although this is probably true, I see some issues with their business model. To start with, I’m guessing that coming up with $60,000 all at once (or even paying $1,200 a month on a 5 year loan at 7% interest) would be out of the realm of “doable” for the demographic typically interested in buying a Yaris, a PT Cruiser, or a Mini. Secondly, at $60,000, you’re 60% of the way to buying yourself a Tesla Roadster with much better stats (not to mention a status factor light years beyond a mere all-electric PT Cruiser). Chances are, if you have $60,000 you can throw at a vehicle, you probably can manage the stretch to $100,000 as well. Lastly, I think the company has missed a bigger consumer demand for converting cars that people already own into all-electric vehicles. If you’ve owned something like a PT cruiser for 6 years, you’ve probably paid it off and you might be thinking of buying a new car. Buying a new car would cost you around $25,000. If the conversion to all-electric costs around $25,000, why not just do that instead? In the process they remove all the parts that tend to break down, you end up with a car that costs pennies per mile to operate, and you’ve essentially recycled your old car. In 4 years time, I’d do that with my 2007 Yaris in a heartbeat. Posts related to Electric Car Conversions and Other Electric Cars: Get 120 MPG Out of Your Prius (Plug It In) Sick of Gas?: Convert Your Car To Run On Electricity An Electric Car With Muscle: The 175 MPGe X1 Prototype by Wrightspeed Inc. Inflatable Electric Cars: Surround Your Body in Bliss An Electric Car You Can Buy Today: The $20K TRIAC EV Snapshot of Battery Technology for Plug-in Hybrid Electric Cars Image Credits: Hybrid Technologies

Cheap, stylish ride: Oxymoron or attainable dream?

Filed under: Car Buying, Economy, Humor

Is it possible to buy a car that's both inexpensive and ultra cool? Can a $22,000 Toyota Prius really get you the same respect from the valet as a $70,000 BMW? That's what "Wired Magazine" wants to know, and they're asking readers to decide which of five relatively cheap cars they would feel coolest driving.

So far, the most expensive of the bunch, the Prius, is in third place with only 18% of the vote. Behind it with 11% is an early-'90s Volvo and a 25-year-old Mercedes 300 SDL. In first place, with a big lead over a used Ford Mustang, is a 1995-1997 Jaguar XJ6.

Really? Those are the only choices we get? For the price of that 2005 V6 Mustang, you could get yourself a real tire-smoking, V8-powered 1966 Mustang. Sure it'll need some paint, probably some fresh Bondo and maybe a transmission overhaul, but that builds character in both owner and car.

Or if you're not into power, don't even think about that wheezy Volvo. Go German instead, and get a classic VW Beetle. You'll pay more than what that boxy sedan cost, but the cool factor of the Bug will more than make up for it.

So what say you, Autoblog fans? What cheap transportation would you choose for its cool-boosting properties? Or is "Wired" right on the money?

[Source: Wired Magazine]

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