2007 Ford Edge CUV to Debut under $26,000
Zerin Dube | September 21, 2006
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CHICAGO, Sept. 20, 2006 – Ford Motor Company [NYSE: F] will launch its all-new and highly anticipated 2007 Ford Edge crossover with a sticker price below $26,000, Cisco Codina, group vice president, Marketing, Sales and Service, announced today at a meeting of the Midwest Automotive Media Association.
At the meeting Codina reaffirmed that between now and the end of 2008, 70 percent of the Ford, Lincoln and Mercury lineup by volume will be all-new or significantly freshened. That includes strong new vehicles in new segments like the Ford Edge, which goes on sale in November, as well as a new 2008 Ford Super Duty pickup, which will be revealed next week at the State Fair of Texas and will go on sale in January.
“Each new product will be a milepost on Ford’s road to recovery,” Codina said. “Inside and outside the company, we have called the Edge launch the single most important launch for the company this year.”
The Right Product at the Right Time
The five-passenger 2007 Ford Edge has a bold design with a stylish, functional and clever interior. It features a fuel-saving powertrain, with Ford’s all-new 3.5-liter V-6 engine with best-in-class 265 horsepower mated to a six-speed automatic transmission. Its highway fuel economy is anticipated to be in the mid-20s. Edge also features standard side curtain air bags and standard AdvanceTrac® with RSC® (Roll Stability Control). A laptop-friendly center console and standard MP3-player input jack also are included.
In addition to optional all-wheel drive, the Edge is available with innovative features including a class-exclusive, all-glass available panoramic VistaRoof™ which gives a grand view of the sky and can open for a sense of freedom that front and rear passengers can enjoy.
Anticipation Grows
The new Edge already is generating excitement among consumers. Since the vehicle was unveiled in January at the North American International Auto Show in Detroit, more than 930,000 consumers have visited the Edge Web site at www.fordvehicles.com/edge Traffic on the Edge Web pages has jumped more than 125 percent since June, after Ford added a “crossover” tab on the fordvehicles.com home page. Driven by the Web, auto shows and other marketing activities, more than 45,000 consumers have asked for more information about the Edge and 3,200 have shared information from the Edge Web site with a friend.
Two distinct trends have helped spur crossover growth: car buyers seeking more spacious and flexible interiors along with the confidence of AWD, and traditional SUV buyers looking for more fuel-efficient and maneuverable vehicles. This year, crossovers are expected to outsell the traditional SUV segment for the first time ever. Through August, industry crossover sales are up 8 percent at 1.62 million units. Already the fastest-growing vehicle segment in the United States, crossovers are expected to be the largest segment in the industry with sales of about 3 million units by the end of the decade. By 2009, the segment is expected to include more than 70 CUV models.
Ford Motor Company outpaced the competition in CUV growth in 2005 and will stake an even stronger claim over the CUV market with the introduction of the new Edge, along with the new Lincoln MKX. As vehicle segments continue to shift in the marketplace, Edge will play a critical role in retaining existing Ford customers as well as drawing new customers into Ford dealerships. Ford expects that approximately 45 percent of Edge buyers will be customers who are new to Ford Motor Company.
“The success of the Edge will prove that we can bring the same customer-focused intensity we have in trucks to new segments of the market,” said Codina. “The total Edge package – design, flexibility, fuel economy, fun-to-drive character and value – gives us high confidence that we will win new customers.”
Exceptional Value
The 2007 Ford Edge SE features a base manufacturer’s suggested retail price (MSRP) of $25,995 for the well-equipped front-wheel-drive model and $27,645 for the all-wheel-drive model.
Key standard features of the Ford Edge SE include:
Bold exterior styling
Best-in-class 3.5-liter V6 mated to 6-speed automatic transmission deliver 265 hp and 250 lb.-ft. of torque. (Fuel economy is expected to be in the mid-20s for highway driving.)
Front-wheel drive
Rear spoiler
Dual exhaust
Center console with class-leading flexibility
Second-row 60/40 split fold-flat seats
Class-exclusive MP3 audio input jack
17-inch painted aluminum wheels
Class-leading standard safety features including: industry leading AdvanceTrac® with RSC®, ABS, Safety Canopy ™ with rollover sensor, front- and front seat side-impact air bags, occupant classification system, adjustable head restraints and LATCH system
The Ford Edge SEL offers many additional appearance, comfort and convenience features, including chrome tipped dual exhaust, a 6-disc CD changer, Convenience Package, body color rear spoiler and fog lamps. It starts at $27,990 for front-wheel drive models and $29,640 for all-wheel drive models.
Option packages available on the Edge SEL include:
Premium Package – Dual electronic temperature control with particulate air filter; exterior puddle lamps; heated seats and heated exterior mirrors; leather trimmed front and second row seats; memory seats; memory exterior mirrors and steering wheel climate controls
Seating Flexibility Package – 6-way power passenger seat, front-row passenger fold-flat seatback; second-row EasyFold™ remote release seatback; leather trimmed front- and second-row seats; memory seats.
Options exclusive to the Edge SEL include:
18-inch chrome-clad aluminum wheels or 18-inch painted aluminum sport wheels
Audiophile sound system with CDX6, nine speakers and steering wheel controls
DVD-based Navigation system with Audiophile sound system
Reverse sensing system
Rear-seat DVD Entertainment System
Class-exclusive two-panel panoramic VistaRoof™ with dual power shades
Options available on all Edge models include:
All-wheel drive
SIRIUS™ satellite radio with six-month subscription
Class II Trailer Towing (for up to 3,500 lbs. maximum towing capability)
Way Forward Commitment: Deliver Outstanding Customer Value
Ford is accelerating the rollout of many of the technologies featured on the Ford Edge across the Ford and Lincoln Mercury product lineup.
“The Ford Edge’s success will validate many of our key product strategies – including better design, higher quality, more safety, added content, lower prices and higher performance,” Codina said.
Stability control – By the end of 2009, all Ford, Lincoln and Mercury retail cars and trucks will feature standard electronic stability control. AdvanceTrac® with RSC® is now standard on traditional SUVs and will be standard on all CUVs by the end of 2008.
Side air bag protection – All retail products will have side impact protection by the end of 2009. All SUVs and CUVs will be equipped with rollover-protecting side air curtains.
3.5L V6 engine – this engine will eventually power one out of every five Ford Motor Company vehicles in North America
All-wheel drive – Ford Motor Company will have 28 vehicles with AWD technology this year
6-speed automatic transmission – Ford plans to produce about 1.3 million 6-speed transmissions annually by 2008
DVD-based navigation system – For 2007, Ford is doubling the number of products with an available navigation system
SIRIUS satellite radio – For 2007, Ford is quadrupling the number of products with available SIRIUS satellite radio
Auxiliary audio jack – Ford is increasing the number of models with auxiliary audio jacks from zero to nearly half of its lineup
In General, Steve Saleen Is Open To Experimentation, Transforming Other
Jalopnik | September 21, 2006In General, Steve Saleen Is Open To Experimentation, Transforming Other Automakers
Steve Saleen, founder of Saleen, Inc. and customizer of all things FoMoCo since 1984, says that the niche vehicle maker is, “open to building specialty cars for automakers in addition to Ford Motor Co.” In a recent interview with…
When you adjust for features, the Ford Edge comes in
Michael Karesh | September 26, 2006When you adjust for features, the Ford Edge comes in higher than I expected, about even with the Honda Pilot and above the Mazda CX-7, but still significantly less expensive than the Nissan Murano. But will Ford be happy selling only as many of these as Nissan sells Muranos?
To perform your own price comparisons, vist my site’s page for the Edge by clicking my name above.
Mike Says: November 2nd, 2006 at 6:29 pm This was
Mike | November 2, 2006Mike Says:
November 2nd, 2006 at 6:29 pm
This was found on a web site called thetruthaboutcars.com for those of you interested in the source.. Doom And Gloom predicted for the blue oval. No love from those guys thats for sure. And a real good read.
Ford Death Watch 15: Those who do not learn from history
By Bob Elton
November 1st, 2006 2,935 Views
The new CEO of the company walked into the boardroom. The mood was grim. Recruited from another company in another industry just a few months previously, he carried bleak news. The automaker had just reported the largest third quarter loss in recent history. Their most profitable products, which had been flying off dealer lots, were dead in the water. Strikes at suppliers had crippled production of the few products that sold well. Market share was evaporating, and operations in Europe were drowning in red ink. Worst of all, recent downgrading of their bonds had hurt the profitability of their all-important finance unit, which had underwritten the car business for years. It was time for some bold moves.
The board of directors listened to the bad news as the patriarch of the founding family stared down at them from a portrait on the wall. When the CEO finished, the directors mulled over their options. No matter what course they chose, the lives of thousands of employees would be affected. The economic health of the company’s home town depended on them. It was a heavy burden.
The year was 1963. The company was Studebaker. The CEO was Sherwood Egbert, formerly of McCulloch Chainsaws. After due consideration, the directors decided that there was no economic justification for remaining in the car business. They initiated plans to ease the company out of the automobile industry and expand its portfolio of profitable businesses. When the last Studebaker eventually rolled off the assembly line, the company’s stock almost doubled. Studebaker went on to become a very profitable company, eventually merging with other conglomerates.
Four-and-a-half decades later, Ford stands at the same crossroads. The Blue Oval just reported the worst third quarter earnings in over a decade-and-a-half. Market share has dropped dramatically, by over a third. Consumers have deserted the profitable trucks and SUVs that drove Ford to the heights of profitability. In the meantime, buyers are lined up none deep for the Ford 500 and its clone, the Mercury Montego. Overseas losses continue, with the Premium Automotive Group losing an astounding $600m.
Wall Street’s lack of confidence in Ford’s automotive endeavors has resulted in the continued downgrading of Ford’s bonds. This raises the cost of capital to Ford Financial, which is the profit engine of the Ford Motor Company. Without profits from Financial, Ford would not be a financially tenable organization. This last quarter, profits from Ford Financial were off about $400m, mainly due to the higher cost of borrowing.
The solutions to Ford Financial’s profit problems leave Ford with a Hobson’s choice. If Ford sells a controlling share of Financial to an outside company (a la GM and Cerberus), the credit ratings of Financial’s bonds would rise dramatically. But Ford would then reap only half, or less, of the profits. And it’s entirely possible that the finance unit’s new owners might find better uses for those profits than propping up FoMoCo.
If, on the other hand, Ford allows the deficit-ridden automobile operations to continue to drag down the credit ratings of Ford Financial, less and less cash from Financial will be available to prop up Ford. Declining profits will decrease the value of Ford Financial. If and when Ford is forced to sell it off just to meet the payroll, the finance company will be worth a fraction of its current fair market value.
And then there’s Ford’s seriously deteriorating relationship with its suppliers. A large number of companies that Ford relies on for continued production of its automotive products are in bankruptcy: Delphi, Tower, Dana, Dura, Federal Mogul and Collins & Aikman; to name a few. A failure of any of these mission critical manufacturers would cause an immediate shutdown of one or more of Ford’s production plants. Ford’s relentless pressure on prices has weakened its supply base to the point where continued and reliable production is a tenuous supposition.
Recently, Ford had to shut down its Fusion/Milan/MKZ plant, when Collins and Aikman (C&A) refused (for one shift) to supply parts at a loss. C&A, bankrupt, felt they simply had to have more money to cover their costs. Widely but silently applauded in the supplier community, the move could well be the first in a series of similar supplier “strikes.” Just when Ford needs more cost savings, their own supplier base, already destitute, will demand, and get, higher prices. Ford has already deplored the “serious harm to the relationship” caused by C&A’s actions, but it’s clear that relationships with Ford don’t pay the bills.
In response to these issues, Ford’s new CEO Alan Mulally is calling for “incremental continuous improvement.” Meanwhile, Ford’s board of directors is heading towards a sad recognition of the truth: the automaker doesn’t have a viable plan for making cars and trucks at a profit, or the time to devise one. At that point, it’s only a matter of time before Ford thinks the unthinkable: following Studebaker into becoming a multi-national financial company.