Robin's Diary
Robin Luscombe
Managing Director Luscombe Motors Ltd | 2022 Car Dealer Lifetime Achievement | 4 x Suzuki Dealer of the Year | 5 x AM Award Winner | Auto Trader Retailer of the Year 2018 & 2020 | 5 x Motor Trader Award Winner
The clock is ticking…
This week’s rumours on the grapevine are that Ford will announce the end of production for the iconic Fiesta, and it will not be replaced by a small internal combustion engine car!
My guess is that they are turning to more expensive electric cars, but the Fiesta and cars like it, have been the biggest selling new cars for the last 20 years, and, at the moment, small EVs are very thin on the ground. As the target is that by 2030 all new cars will be zero emission vehicles, and sales of Petrol and Diesel engines cars will tail off by 2029, I can understand the cost of making a new Fiesta or similar presents many challenges…. But, and it’s a big but, customers still want to buy small cars! Car parking spaces are not big enough, Garages aren’t big enough, and the rest.
Don’t panic though, because I am sure some manufacturers will see the potential market, and capitalise on the opportunity. It just might have a different badge. I hope I’m fortunate enough to represent the brand which gives car buyers what they want, rather than expecting you to buy what they make!?
“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.” Sam Walton
? Helping Car, Van, Motorhome and Caravan dealers to become more Efficient and Profitable ?
2 年Very interesting Robin. The point you make is based on the state of the ICE vehicle today compared to todays Electric Vehicle. There are a few points to consider? The first is that pricing of ICE vehicles has been increasing steadily whereas the price of EVs has been dropping in recent years Looking at your own brand - the ev MG4 pretty much has price parity with an equivalent Ford Focus even today. But considering the total cost of ownership (fuel/maintenance), the MG4 is a significantly better proposition as a new car. Im sure you have loads of orders taken on this basis. Looking forward 2 years (when the Fiesta will be gone) it is equally likely that evs in the Fiesta segmnet will likely be similarly priced to equivalent Evs - especially when you do the full total cost of ownership equation. Yes, there are lower cost ICE vehicles which will maintain a cost advantage (your Suzuki brand has some examples) but extrapolating where we are todsy you might expect price parity by 2030) which is still 8 years away - an age in EV terms. The only thing that can go wrong is if governments lose their committment to the cause - particularly in ev charging. Its sad to see the demise of the ICE vehicle but 2050 is ever closer.