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no, i think the fact that i was basing my entire claim off some threads being unstickied makes it very clear that i was joking...
I think this is actually a valid question and one I'm also worried about since they postponed the reveal. I've been anticipating this for over a year. It has nothing to do with sunk costs, only the bottom line moving forward.
Something to consider - If the economy absolutely tanks overnight (not saying it has or it will, but if it did), the number of people looking for fun SUV daily drivers and off-road toys goes way down, that's just a fact. Same thing happened in 2008. Maybe not you or I, but the overall numbers go down, especially on the true profit makers like the Rubicon-equivalent trims. Sure, the anticipation for the Bronco is high right now, but if they launch an expensive vehicle at a low point in the economy and the initial response from buyers is weak, that can stain the entire trajectory of a product and cause it to never take off.
Remember, the the profit margin from a base trim is low. They make all their profit on higher end trims, the base trim just increases volume so production costs stay down. For that reason, I don't see them canceling higher trim levels or saving them for later, but it's possible.
The fact that they canceled the revealing makes me nervous and they might be buying time to see how the economy plays out. If this thing really does drag out for months and keep factories and offices closed, it's very very possible they could scrap the launch and keep the design in their books for a few years until the economy improves. That said, I really hope this passes soon and the buzz comes right back, but if it gets worse this question could become very real.
Something to consider - If the economy absolutely tanks overnight (not saying it has or it will, but if it did), the number of people looking for fun SUV daily drivers and off-road toys goes way down, that's just a fact. Same thing happened in 2008. Maybe not you or I, but the overall numbers go down, especially on the true profit makers like the Rubicon-equivalent trims. Sure, the anticipation for the Bronco is high right now, but if they launch an expensive vehicle at a low point in the economy and the initial response from buyers is weak, that can stain the entire trajectory of a product and cause it to never take off.
Remember, the the profit margin from a base trim is low. They make all their profit on higher end trims, the base trim just increases volume so production costs stay down. For that reason, I don't see them canceling higher trim levels or saving them for later, but it's possible.
The fact that they canceled the revealing makes me nervous and they might be buying time to see how the economy plays out. If this thing really does drag out for months and keep factories and offices closed, it's very very possible they could scrap the launch and keep the design in their books for a few years until the economy improves. That said, I really hope this passes soon and the buzz comes right back, but if it gets worse this question could become very real.
Those appear to be production numbers, not sales. I'm trying to find sales in $$ which tells a lot more (because the higher trims sell less) but I can't find the data quickly.
Sales figures, at least on Wikipedia, show a much more significant and lasting decrease in sales.
119 to 84 is a 30% drop.
Regardless, my point is that no brand wants to launch a product at the worst possible time. I agree that it would be foolish for them to scrap the Bronco 100% but they might cancel it, re-evaluate the market, then launch later. It's not my prediction, and I hope they don't as much as everyone else on here, I just think it's foolish to blindly believe they would NEVER do it.
Sales figures, at least on Wikipedia, show a much more significant and lasting decrease in sales.
119 to 84 is a 30% drop.
Regardless, my point is that no brand wants to launch a product at the worst possible time. I agree that it would be foolish for them to scrap the Bronco 100% but they might cancel it, re-evaluate the market, then launch later. It's not my prediction, and I hope they don't as much as everyone else on here, I just think it's foolish to blindly believe they would NEVER do it.
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Killing the bronco is very unlikely. Developing a new model from the ground up is a massive investment for an automaker, incurring hundreds of millions or even billions in capital costs before selling a single unit. The Bronco and Bronco Sport are nearly complete, with only production infrastructure remaining. The sunk costs of abandoning the project would be astronomical at this stage. If anything, it's more probable that Ford will accelerate the launch of both models so that they can begin amortizing their capital expenses.
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They won't scrap it altogether, just be more cautious and patient until full reveal and launch.
This crash at least has lower oil prices as a result already, compared to some of the last runup to recessions/crashes.
This crash at least has lower oil prices as a result already, compared to some of the last runup to recessions/crashes.
Wrong...unless FORD completely goes out of business..and with really only a few new vehicles set for production in 2021...the money they spent is already calculated into their future profit or loss for at least 3 years..it's already there. If this was still two years out ..that would be a different situation.
They are expecting 200,000 Broncos being sold in its first year...figure the sales on a min $30,000 vehicle..with the exception of the F150..no other Ford product is going to outsell the new Ford Bronco..
If they don't make it ..they will have a hard time staying afloat.
In addition, Ford just suspended their dividend..that will free up billions of dollars per year.
Actually if you look at China..it's already over there..they are cranking up the factories ..it will be the same thing here by the end of April latest early May. It will be exactly what happened after WW2..an economic boom. We had already been taking steps to be less reliant on a world economy and more on a Main Street economy for the last 3 years..
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As long as you stay ahead of it and don’t go all Italy on us here.
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It also coincided with the launch of the 4drWell, the Wrangler was only down a single year and then skyrocketed from the last crash.
I would feel better if Ford would release an “official” teaser.
Even if it’s a Bronco doing doughnuts and you never actually see the bronco because of all the dust but the message is “coming soon”
There has to be some video footage they already got of it out at KOH doing something they could edit and never actually show the Bronco.
Even if it’s a Bronco doing doughnuts and you never actually see the bronco because of all the dust but the message is “coming soon”
There has to be some video footage they already got of it out at KOH doing something they could edit and never actually show the Bronco.
I 100% agree. I work with multiple electronic factories in China and they are all producing again for the last couple weeks. I don't expect this economic "crash" to be anywhere near as bad as the media is making it sound.
I also follow aviation news very closely as I used to work for a Boeing supplier, so my news feed is likely a bit more panic inducing as they are in a lot of trouble.
But I still stand by my point in that Ford may be waiting it out to see how bad it really is and I don't think canceling is impossible, just highly unlikely. The lack of teasers or leaks since the reveal was canceled has me nervous.
China factories are operating because their government has ordered them to do so.
I wonder how liability laws differ between us & the ChiComs? I know here in the USA there are legions of lawyers waiting to sue employers. I think suing the ChiComs is riskier business.
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