Ford says Fiesta won't return for 2018

[robbie_d]

My wife, and I have decided to start looking for another FiST now; His and Hers

My wife drives a Kona 2016 and I have a Shadow Black 2016. We took hers to Florida, a 12 hour drive for us with a three yer old, and it was no problem for a days drive. Honestly, they napped on the way back and it was easy putting in six straight hours. We both love our cars. I came from a fixed up Miata and her a Focus. There is seriously not a single drive where I don't enjoy the FiST. It has compromises, but for our lives you can't get better than double FiST's!

 

[FiSTerTheGrouch]

Another double FiSter here. My wife drives a '14 Tuxedo Black and I traded a FoST in for a '16 Magnetic Fist.

 

[Stupidbutt]

The one thing that the FiST has that I have not found in other cars is that it is just plain fun to drive. The FoST seems more of a family car and nobody else makes a fun car anymore.

 

[TrickSTer]

50,000 units x avg. $20,000 each = $1,000,000,000!!!! That's ONE BILLION DOLLARS!

That's a lot of business to walk away from and one hell of a gift for the competition!

I wonder what the sales numbers are like for the new Cruz hatchback?

I think Ford is just doing a poor job of marketing this car; they've left it up to us. If I was a Ford dealer, I would have four "lanes" in the front of my lot with checkered flag banners over each; a FiST, a FoST, a FoRS and a GT350 in one of each at all times!

 

[zanethan]

50,000 units x avg. $20,000 each = $1,000,000,000!!!! That's ONE BILLION DOLLARS!

That's a lot of business to walk away from and one hell of a gift for the competition!

I wonder what the sales numbers are like for the new Cruz hatchback?

I think Ford is just doing a poor job of marketing this car; they've left it up to us. If I was a Ford dealer, I would have four "lanes" in the front of my lot with checkered flag banners over each; a FiST, a FoST, a FoRS and a GT350 in one of each at all times!

That's WAY too much of an oversimplification. You failed to subtract out the cost of production, the cost of warranty work, and you need to weight the average via percentage of sales (Ford sells a lot more $13k Fiesta's than $25k). All of which will significantly lower the profit margin. My guess is that the cost of production is about $8-$10k per unit and then about another $2k in average warranty work per unit. Add in the cost of shipping probably $1k and your profit is now $350M. While it's certainly nothing to laugh at we still haven't taken into account the cost of crash testing, buy backs, lawsuits, R&D, etc. My guess is that Ford makes about 100M in profit on the Fiesta. Couple that with steadily declining sales numbers (20,000 fewer over 5 years) and it's a safe bet that profit numbers would fall into the red at the end of the next generation run. (Assuming gas prices don't go back up)

I do agree that Ford has done a terrible job at promoting the ST trim for both the Focus and Fiesta. (My guess is that they didn't want to cannibalize sales from the Mustang) The only people who know what they are are the hardcore car guys and gals. Everyone else just sees an econobox. That coupled with the fact that most Americans only view cars as a method of getting from A to B has sealed the fate for the poor little FiST and possibly fun cars in general. Most of the up and coming generation has little to no interest in cars and they certainly don't want to learn to drive stick.

There are a lot of factors going into the demise of the Fiesta but the fact that gas has dropped and stabilized at a reasonable price is ultimately what has sealed its fate. If gas is only $2.00/gallon, why buy a small econobox for $25k when you can get a earth shaking V8 for $33k or a 300HP V6 for the same price? (Obviously we get it because we bought the FiST, but most Americans don't.) Yes $8k is a big difference but most Americans don't see it as such. They only shop monthly payments and are incredibly shortsighted, especially in financial aspects.

I'm not surprised at this announcement. I would have been 8 months ago but after the hushed tones surrounding the launch of the 2018 it's not a shock. I'm disappointed but when gas hits $5.00 again I'll be happy in my 35mpg fun car with lots of $$ in my pocket.

 

[jmrtsus]

50,000 units x avg. $20,000 each = $1,000,000,000!!!! That's ONE BILLION DOLLARS!

That's a lot of business to walk away from and one hell of a gift for the competition!

I wonder what the sales numbers are like for the new Cruz hatchback?

I think Ford is just doing a poor job of marketing this car; they've left it up to us. If I was a Ford dealer, I would have four "lanes" in the front of my lot with checkered flag banners over each; a FiST, a FoST, a FoRS and a GT350 in one of each at all times!

If the car is not making money you walk away from it, most Fiesta's sold are not ST's and only ST's are $20k. The actual profit on a Fiesta is not a fortune like on the trucks and SUV's. When you add in the costs of importing them from India in the future I am sure financially it was wise. I think most people that wanted an ST have one already and really performance wise they are all the same so I don't see anyone getting rich selling one. Any price increases will like all "collector" cars be in cars without third party mods and really good service/maintenance records.

As to marketing the ST look at the numbers. Sales are less than 5000 a year average, even if Ford made $2k profit on each car that is only $10 million. That will buy about 15 prime time TV commercials. It is a niche car and sells more by word of mouth and car reviews. 6 months ago I stopped at a Knoxville TN Ford dealer to look at a Fusion Sport. The salesman said my ST was the first he had ever seen......and worked there for 10 years. Did not even have ANY Fiesta's on the lot that day. Said no money in them! Had maybe 10 cars total and about 100 trucks and SUV's. I love the ST but I was surprised they continued the ST in '17 but I guess the costs were low still. I think Ford will see a spike in demand for the last ones.

 

[M-Sport fan]

That coupled with the fact that most Americans only view cars as a method of getting from A to B has sealed the fate for the poor little FiST and possibly fun cars in general. Most of the up and coming generation has little to no interest in cars and they certainly don't want to learn to drive stick.

^^^THIS!

Why buy a performance car, and expend the effort to learn to drive a manual, when you can sit in a comfy chair, play one of the gamer 'driving' formats (Need For Speed, various Forzas, Asphalt, etc.) while getting fat and carcinoma loaded consuming massive amounts of overly HFCS laden drinks, and 'drive' the most exotic hypercars on this planet (IF they even have ANY interest at ALL in automobiles)??

I will add though that a healthy dose of status creds (or percieved status) is second in line to the A to B appliance requirements of most American drivers, at least around here.
The irony is that they are too stupid (or blinded by their wealth) to realize that when EVERYONE in an area has the same exact requisite 'rolling fur coats', their exclusivity, and therefore 'status' is GREATLY diminished. LOL

 

[Zissou]

^^^THIS!

Why buy a performance car, and expend the effort to learn to drive a manual, when you can sit in a comfy chair, play one of the gamer 'driving' formats (Need For Speed, various Forzas, Asphalt, etc.) while getting fat and carcinoma loaded consuming massive amounts of overly HFCS laden drinks, and 'drive' the most exotic hypercars on this planet (IF they even have ANY interest at ALL in automobiles)??

I will add though that a healthy dose of status creds (or percieved status) is second in line to the A to B appliance requirements of most American drivers, at least around here.
The irony is that they are too stupid (or blinded by their wealth) to realize that when EVERYONE in an area has the same exact requisite 'rolling fur coats', their exclusivity, and therefore 'status' is GREATLY diminished. LOL

You heard it here first; comfy chairs and high fructose corn syrup cited as the reason Ford will no longer sell the Fiesta in the US market.

 

[M-Sport fan]

You heard it here first; comfy chairs and high fructose corn syrup cited as the reason Ford will no longer sell the Fiesta in the US market.

YESSIR!! The gamers win this one.

 

[Waterfan]

It is very sad to see what is playing out. I have spent the last decade working to promote the Fiesta in the US. I started when the Verve concept debuted in Geneva and continued with emails and messages begging for the car. I was part of both Fiesta Movements and continue to be part of the Fiesta community. To see all the hard work come to end is depressing. I have no interest in a crossover, no interest in a truck (unless it is a Raptor), and have very limited interest in non-Ford products.

Your Fiesta ST youtubes in 2013(?) were among the first things I saw on the FiST (before and after Fiesta Movement launch?) and the start of my love affair (when I finally got my own, end of 2015)

Bummed, but not surprized, it may not be returning.

Hopeful they will still be available but glad I got mine regardless.

 

[Waterfan]

That's WAY too much of an oversimplification. You failed to subtract out the cost of production, the cost of warranty work, and you need to weight the average via percentage of sales (Ford sells a lot more $13k Fiesta's than $25k). All of which will significantly lower the profit margin. My guess is that the cost of production is about $8-$10k per unit and then about another $2k in average warranty work per unit. Add in the cost of shipping probably $1k and your profit is now $350M. While it's certainly nothing to laugh at we still haven't taken into account the cost of crash testing, buy backs, lawsuits, R&D, etc. My guess is that Ford makes about 100M in profit on the Fiesta. Couple that with steadily declining sales numbers (20,000 fewer over 5 years) and it's a safe bet that profit numbers would fall into the red at the end of the next generation run. (Assuming gas prices don't go back up)

I do agree that Ford has done a terrible job at promoting the ST trim for both the Focus and Fiesta. (My guess is that they didn't want to cannibalize sales from the Mustang) The only people who know what they are are the hardcore car guys and gals. Everyone else just sees an econobox. That coupled with the fact that most Americans only view cars as a method of getting from A to B has sealed the fate for the poor little FiST and possibly fun cars in general. Most of the up and coming generation has little to no interest in cars and they certainly don't want to learn to drive stick.

There are a lot of factors going into the demise of the Fiesta but the fact that gas has dropped and stabilized at a reasonable price is ultimately what has sealed its fate. If gas is only $2.00/gallon, why buy a small econobox for $25k when you can get a earth shaking V8 for $33k or a 300HP V6 for the same price? (Obviously we get it because we bought the FiST, but most Americans don't.) Yes $8k is a big difference but most Americans don't see it as such. They only shop monthly payments and are incredibly shortsighted, especially in financial aspects.

I'm not surprised at this announcement. I would have been 8 months ago but after the hushed tones surrounding the launch of the 2018 it's not a shock. I'm disappointed but when gas hits $5.00 again I'll be happy in my 35mpg fun car with lots of $$ in my pocket.

From a topline/revenue perspective, he's not wrong.

You're not wrong either, net profit on FiST may be marginal or even negative in US.

 

[LilPartyBox]

I hear ya man; I'm bummed. Aside from the FiST, the 1.0 turbo version is still neat. FoRS is going out the door, too. Good thing you own a FiST, and probably the FoRS later on.

My wife, and I have decided to start looking for another FiST now; His and Hers

Funny you say that. The wife and I are doing the same thing! I think I may go white with the next one if I can't find a left over kona by some miracle. I thought about a FoST but then I realized it's not a FiST

 

[TrickSTer]

Yes, [MENTION=5941]zanethan[/MENTION] , I'm aware that a billion dollars BUSINESS (as stated) is total sales, not profit.

I don't see any point in trying to break that down into profit with a bunch of guesses.

I'm also Canadian, so my $20K per unit could actually be only $14,800 US (@ .74 exchange rate depending on date).

I was simply ballparking total business volume to put it in perspective.

My point was it's a lot of business to walk away from.

 

[Truth in Ruin]

Funny you say that. The wife and I are doing the same thing! I think I may go white with the next one if I can't find a left over kona by some miracle. I thought about a FoST but then I realized it's not a FiST

I have a Kona blue

I wasn't seeking my Kona blue for the color; I bought it because it was dirt cheap!!! I didn't like the Kona too much, but it has grown on me. I've received tons of compliments on the color, which I never expected. My friends & family probably like the color better than I do, but again, it has grown on me. If I could I would go with white, because Kona is dark enough to have problems. It can show swirls, and it does show dirt pretty quick. However, it's a great color to camouflage rock chips.

I've seen a white FiST with white ST emblems, white ford ovals, black rims, and dark tint. It was love-at-first-sight.

If you absolutely cannot find a Kona, and end-up with a white one... maybe we can work something out

 

[Zissou]

YESSIR!! The gamers win this one.

I am an avid video gamer though. It's my love of cars that makes me interested in racing simulators now, but playing racing games growing up fueled my car passion (Gran Turismo 3 for sure).
My friends that are not into cars generally don't play racing games.

 

[M-Sport fan]

I am an avid video gamer though. It's my love of cars that makes me interested in racing simulators now, but playing racing games growing up fueled my car passion (Gran Turismo 3 for sure).
My friends that are not into cars generally don't play racing games.

Yeah, I was being over-snide, as I DO realize that many of the racing gamerz ALSO love the real thing, and that many actual PRO race drivers use the course simulators to better learn/visualize the courses on which they must compete.

It is basically the whole generation though, as exemplified by that Liberty Mutual Insurance TV ad where the kid does not even know what a lug wrench is, let alone any clue as to HOW to even change a flat tire.
But I'll bet a fortune that kid is a gamer, and I.T. in general WIZ, and then some! LOL

 

[KKaWing]

It is basically the whole generation though, as exemplified by that Liberty Mutual Insurance TV ad where the kid does not even know what a lug wrench is, let alone any clue as to HOW to change a flat tire.

Legit overheard someone not buy a car because it doesn't come with roadside and a spare in the trunk. /facepalm.

 

[Waterfan]

Legit overheard someone not buy a car because it doesn't come with roadside and a spare in the trunk. /facepalm.

Better to know your limitations, no matter how lame

 

[DeadDred]

No big deal as long as after market and replacement parts keeps going. It just means once I get my done up with flares, engine/turbo and body styling it'll be a super rare tiny (wtf is that?) car on the road.

 

[scotman]

No big deal as long as after market and replacement parts keeps going. It just means once I get my done up with flares, engine/turbo and body styling it'll be a super rare tiny (wtf is that?) car on the road.

Tic toc. No new Fiesta enter the market. General rule is fifty percent are wrecked or otherwise destroyed in ten years. This means a steadily declining number of people who are in the market for Fiesta parts and especially the expensive performance stuff. And really, how many people keep their car to payoff? Damn few. How many people would have a five to seven year old Fiesta that they would maintain so well that dropping a couple of grand into add ons to upgrade it? We are talking about unicorns now! Moral of this story​? Nice Fiestas AND parts are available now. They will be fading fast within 2 years! So now is better than later.