Fiesta ST Pricing and Guilt

[RoboEmu]

I was talking to a couple of fellow Ford enthusiasts at work today and one of them brought up an interesting point, our little FiST is clearly not geared toward the majority of people. It is truly a car for the enthusiast which lets be honest is not the majority of the market in the US by any stretch of the imagination. He reckoned that Ford is probably actually losing money on every one sold cause in the long run it attracts more people to buy their next car at Ford. I thought this was interesting and it makes sense actually, our car is for what it is, is priced rather cheap. Then I read today it is only expected to appeal to 4-6% of all Fiesta buyers. I tried to do some digging and this is a theory that is present in quite a few automotive journals, some more critical of our cars then other but they theory is rather prevalent. It almost makes me feel bad that the company that created something so wonderful actually lost money on my sale, it also makes me seriously think that unlike other companies that are so heavily focused on the profit today, like normal, Ford is looking at the future of not only their company but of motorsport in general. Just my thoughts on it.

 

[degnerd]

I don't see how it is causing them to lose $ if the FiST owner gets their next vehicle from Ford? Or am I missing something? Either way, I wouldn't lose sleep over it. I think they'll survive. 😊

 

[RoboEmu]

I mean they would be losing money in the short run, in the long run they would be making more.

 

[RAAMaudio]

Lot's of Halo or other term cars have been sold over the years at a loss for various reasons, I am just glad Ford has the means and mentality to do something so cool as the FiST. Even a bit of a loss is not really a big deal compared to the huge margins on upscale trucks and SUV's which they sell a butt load of.

 

[wrongwheeldrive]

I'm so happy with Ford after making the FiST, my next car will be a an F150. Never thought I would say that (Lifelong GM guy).

Not to mention they paid for me to attend Octane Academy!

 

[BronxBomber]

So far I bought my wife a Lincoln MKZ last year and I really liked it. Not my style per se, but really comfortable, good quality vehicle & no issues even with 50k on the clock. This partially led me back to Ford for my FiST. I will purchase another Ford in the future. Maybe a Focus RS, or Mustang.

 

[degnerd]

Maybe a Focus RS, or Mustang.

Good luck with the RS. Seriously, that would be an awesome catch!

 

[DvC]

i seriously doubt theyre losing money. if theyre losing money on the fist theyre fo sho losing money on the fost

 

[dyn085]

I doubt they're losing money on the FiST as well. It's definitively not a halo car and they never planned on producing a ton of them, but it's another block checked for advertising and showing the world that they are trying harder to be a performance-oriented company.

Considering the platform is based on and how close in OTD pricing it is to the FoST, I would venture a guess that Ford makes a decent amount extra on this particular trim.

 

[GAbOS]

I also don't think they are losing as much as people think if anything really. It's based on a base platform and the ecoboost is slowly relaxing everything. And correct me if I'm wrong but isn't the same 1.6 used in NA application as well?

 

[FatGuyInALittleCar]

Small cars in general are hard to make money on... But at Ford, under Mulalley, each line had to have its own business case, meaning it had to be profitable.
Fiesta ST is a way for enthusiasts to get into the entry level of Ford performance and an aspirational car for Fiesta buyers. That 4% ST mix? What if they bought a Hyundai or Honda instead? That's what Ford is looking at. Total sales in the category by offering the broadest range possible on each platform. The goal then is repeat buyers who are ideally upwardly mobile. If I bought a FiST this time, they want me to buy an Edge or Mustang or Fusion next time.

 

[zxtost]

They don't lose money. All major components are shared with other existing vehicles and they cut costs to make it profitable by not giving us backup camera, etc. I love my Fist but it is still a cheap subcompact at its core.

 

[D3 SS 3D]

I doubt Ford is losing money on the FiST, FoST or really, any of their lineup. If they had a profits loser with the FiST they'd probably never even build it. At the end of the day, you have to realize that Ford is in business for one thing.....to make money. If they were bleeding profits on the FiST, you wouldnt see it make an appearance in 2016, but alas, it's back. Don't feel sorry for these large corporations, they're making lots of money, Ford made 3.2 billion last year.

http://www.bloomberg.com/research/stocks/financials/financials.asp?ticker=F

 

[frankiefiesta]

A fiesta with revised suspension and an escape turbo motor? I doubt they lose money on these cars.

Especially the ones with recaros and nav

 

[Deleted member 2208]

...and they're not spending much on marketing.

 

[BronxBomber]

Good luck with the RS. Seriously, that would be an awesome catch!

I don't plan on getting a Focus RS anytime soon, being as I've only made two payments on the FiST. But in two years or so, totally realistic. Although is have to drive it first. I bought the FiST without ever driving one before. Sat in a base model for all of100 seconds and ordered one. Don't think I'll take that route with the Focus RS.

 

[BronxBomber]

...and they're not spending much on marketing.

In the USA they're not spending any money advertising the FiST. I've never seen a commercial or even any print advertising for the FiST. It's almost like they don't want you to buy one. Smh.

 

[Ronbo]

In the USA they're not spending any money advertising the FiST. I've never seen a commercial or even any print advertising for the FiST. It's almost like they don't want you to buy one. Smh.

I remember seeing some print advertising when the FiST was first introduced, but there wasn't a lot.

 

[rexdriver85]

What about the Fiesta Movement? They spent a lot on that I'm sure. It was however social media advertising, not television or magazine ads. [MENTION=1313]BRGT350[/MENTION] can speak on it, he was part of it.

 

[BRGT350]

What about the Fiesta Movement? They spent a lot on that I'm sure. It was however social media advertising, not television or magazine ads. [MENTION=1313]BRGT350[/MENTION] can speak on it, he was part of it.

The Fiesta in general has had very little in terms of traditional media coverage, mostly because the target demographic is less likely to be using printed media or regular television. Advertising for the Fiesta and ST has mostly been online or product placement at events. American Idol was used back in 2009 and was continued for many years with using the Fiesta in the show or TV commercials that aired. More recently has been the X Games, which the Fiesta Movement was involved with. Social Media marketing has been the main focus since 2009 with 3 versions of the Fiesta Movement. I highly doubt there will be a 4th due to the legal constraints added over the years by the FCC and lawyers concerning how social media marketing can be used.

Advertising small cars or niche models has never been very prevalent. How many ads existed for the original Focus? Any SVT product? Basically none. Niche cars like the Fiesta ST sell to people who are in the know and are not the ones swayed by TV commercials. If you look at most car companies, they advertise trucks and mid size cars. The vast majority of those buyers tend to watch a lot of TV and have very little enthusiasm for the car or truck they own. People that buy a ST, GT350, RS, or any performance model from another car company tend to be at the track, going to car shows, competing in weekend motorsports, and online talking with other enthusiasts. Any money spent on TV advertising is just wasted since that market is out doing stuff with their cars and not plopped down on the couch drinking cheap beer. There is a reason why football games are blasted with truck and SUV ads.