Monday, March 05, 2007

Ford Mustang pulls up lame

Canadian Business: Ford tries to stem 19 per cent slide in iconic Mustang sales
The latest version of Ford's iconic Mustang is growing old, and back-to-back monthly sales declines to start 2007 have the struggling company a little worried.
The new Mustang, which made its debut in the fall of 2004, has been a bright spot for Ford at a time when bright spots have been few.
So when Mustang sales dropped by 19 per cent in January and February compared with the same months in 2006, company officials became a little concerned.

"It's gotten our attention because when a high volume product like that declines as much as that, we want to see what we might want to do about that," said George Pipas, Ford Motor Co.'s top sales analyst.
A drop in Mustang sales should be a worry for Ford, which saw its overall U.S. sales slip eight per cent last year. The company sold 160,975 Mustangs in 2005 and 166,530 in 2006, big numbers in the midsize sports coupe market, a segment considered to be a niche.


To say that things aren't going well for Ford is an understatement. Right now, they seem eager to try almost anything.

Here's a radical idea: has anyone thought of taking a long, hard look at their sales culture?

I can't claim to be an expert on the auto business. Nor can I claim to have undertaken a comprehensive review of the salesforce at a large number of dealerships.

However, I have visited a few Ford dealerships over the years when shopping for a new car. The first salesman to approach me always seems to fall into two categories: the young would-be hotshot who thinks he's a closer, or an older broken down Willy Loman-like sad sack. The pressure sale, or the pity sale, what a choice. Neither personality type is effective with me, and since I'm not inclined to buy a car from people who annoy me, nor am I being paid to take the time to coach them on sales skills, these encounters see me leaving empty handed.

Inevitably, I buy cars from people who take the time to build rapport, and add value into the sale. I don't don't know if I've ever mentioned this before on my blog (okay, that was sarcasm), but those are critical skills.

So, from the perspective of a long time sales manager, my first response to the automaker's declining numbers is to ask, what are the salesmen doing wrong?

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