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New car market raining on convertibles' parade

Whether fitted with soft or hard folding lids, today's droptops are better than ever for year-round motoring. Advancements in power top mechanisms, sealing, aerodynamics, structural rigidity, rollover safety and creature comforts like heated and cooled seats mean that modern convertibles are more versatile and better to drive than ever before. Yet the segment's sales took a dive during the recession and haven't come back, Automotive News reports.
Part of that is because automakers are looking at today's more sensible buyers and simply not developing as many new models, and that lack of fresh iron is curbing sales. AN cites R.L. Polk data which notes that only about one percent of new vehicles registered in the US last year had tops that folded. Back in 2009, it was 1.4 percent, and it was 2 percent in 2006. All-in, some 151,636 convertibles were registered in 2012. That's more units more than were registered in each of the past three years, but the market has also grown as the economy has picked up speed, and as a percentage of new vehicles purchased, convertible sales are lagging.
Thus far in 2013, the Ford Mustang is America's top-selling convertible, with 6,421 units registered through the end of April, followed by its rival, the Chevrolet Camaro, at 4,751 units. The Volkswagen Beetle isn't far behind, with 4,305, but from that point, it's a steep drop off to the fourth-place Mercedes-Benz SL-Class and its 2,380 sales.

Ford to build next F-150, outgoing model concurrently?

Ford is rumored to be considering concurrent production for old and new F-150 models in a bid to minimize supply chain disruptions and inventory. Automotive News is reporting that the Blue Oval will build both the current F-150 and its replacement, which we showed you testing just last month, side by side for about half a year before switching over entirely to next-generation production.
As IHS Automotive analyst Mike Jackson told AN, "In order to ramp up, you have to retool...and that means you have to take capacity offline." Building both models alongside could allow Ford to cope with the still strong demand for the current F-150, while populating dealer supplies and working out supply chain kinks for the new model before making a full-time switch.
A loss of capacity when demand is so strong, even for a short period, could spell bad news for Ford, which nets an estimated 90 percent of its global profit on pickups and large SUVs. As AN states, Ford produces the F-150 in both Kansas City, Missouri and Dearborn, Michigan, which allows it to maintain some degree of flexibility in production. The new F-150 is expected to arrive at the 2014 North American International Auto Show as a 2015 model, with a design inspired by the Atlas Concept first shown at the Detroit Auto Show last January.

Ford idling Michigan Assembly Plant to trim Focus, C-Max supply

Ford will be putting the brakes on production at its Michigan Assembly Plant in Wayne, MI, idling production during the weeks of October 28 and December 16. Ford is citing the first drop in US sales in 27 months, a 4.2-percent dip in September, as the impetus for trimming their supplies, according to Automotive News.
Ford's deft management of its supplies has been part of its success over the years, and seeing supplies of Focus and C-Max, the two vehicles built at MAP, rise from 58 and 108 days, respectively, to 71 and 122 days over the span of a month was apparently all that was need to justify the trimming. As AN points out, the rule of thumb for many automakers is to maintain a 60-day supply of vehicles.
"Ford has been focused on keeping their pricing in check. Their operating margin is in double digits. Nobody else is there and they're obviously very proud of that," Alan Baum, an auto analyst with Baum & Associates told AN. Keeping the supply chain operating smoothly and not increasing supplies too much is crucial to that healthy profit margin. After all, a large supply lowers prices ,which, in turn, cuts profit. So while this news might not be great for employees at MAP, who now have an extra two weeks of vacation time, it's far from a sign of problems in Dearborn. Quite the opposite, actually.