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Ford Customers Benefit from Higher
Re-sale values & Fewer warranty repairs
Ford's dramatic gains in quality are
contributing to a 23 percent
year-over-year improvement in resale
value of Ford vehicles with one to five
years on the road – outpacing the
industry average by 4 percentage points.
On average, the redesigned 2010 Ford
Taurus is selling 50 percent higher at
auction than the 2009 Taurus after one
year in service.
Ford, Lincoln and Mercury vehicles'
initial quality in the U.S. has improved
for five straight years. Ford vehicles
now have the fewest number of defects of
any full-line manufacturer.
The resale value of newer Ford Motor
Company vehicles rose 23 percent in the
past year alone, the result of stronger
demand for Ford's new vehicle line-up
and improved quality and durability
ratings.
At the same time, warranty repair rates
on Ford vehicles have declined by an
average of more than 40 percent globally
in the past three years.
Ford, Lincoln and Mercury vehicles with
one to five years on the road are
fetching significantly higher resale
values at auction in the first quarter
of this year compared to the first
quarter a year ago. Overall, the resale
value of Ford's three brands at auction
rose 23 percent from a year ago to
outpace the industry, which saw resale
values increase by 19 percent, according
to the latest North American Dealers
Association auction data.
"Wholesale price performance was
extremely strong throughout 2009, and
during this period Ford, Lincoln and
Mercury products matched or exceeded the
performance of the overall market," said
Tom Webb, chief economist, Manheim
Consulting, the world's largest provider
of automotive remarketing services.
"And, in 2010, Ford products have
outperformed the overall market,
especially in the increasingly important
segments of compact cars, midsize cars
and crossover vehicles."
"Wholesale used vehicle prices have
generally been firming over the last
year and a half; however, the price
performance of Ford products has
generally exceeded that of the market as
a whole," said Tom Kontos, executive
vice president, Customer Strategies and
Analytics, ADESA Analytical Services,
which is a used vehicle auction network.
Rising resale values means more money in
customers' pockets when it is time to
sell or trade in for a new vehicle.
Combine these savings with lower repair
and maintenance costs and better fuel
economy, and the cost to own a Ford
product drops dramatically over the life
of the vehicle.
Fueling Ford's improved resale value is
the company's strong vehicle lineup that
includes many new and redesigned cars
and trucks. Ford gained market share in
the U.S., while improving transaction
prices.
Strong retail performance, in both
transaction price and sales of a new
product, serves as an early indicator of
that product's future resale value. When
combined with Ford's quality rankings,
these factors help Ford vehicles hold
their value.
"The positive reception by consumers of
our recent product introductions and
freshening is reflected in our higher
transaction prices and increased market
share," said Jim Farley, Ford's group
vice president of Global Marketing.
Ford performance in third-party consumer
quality rankings has been steadily
improving for the past several years.
Years of a consistent and disciplined
focus on quality is paying off,
including a marked decline in warranty
repair rates.
Ford, Lincoln and Mercury vehicles'
initial quality in the U.S. has improved
for five straight years. Ford vehicles
now have the fewest number of defects of
any full-line manufacturer, according to
the GQRS study conducted by RDA Group.
For Ford customers, this means fewer
trips to the dealership for repairs.
This also means savings for Ford as the
company has reduced its warranty repair
costs by $1 billion in the past three
years.
"We are operating with a truly dedicated
discipline to quality," said Bennie
Fowler, Ford group vice president,
Global Quality. "The results are paying
off for our customers with fewer trips
to the dealership and a higher
satisfaction with the Ford, Lincoln or
Mercury product they purchase."
As Ford's newest vehicles hit the road,
company officials expect resale values
to continue to improve and warranty
claims to continue to decline.
Ford's commitment to world-class quality
and a positive ownership experience
extends beyond just preventing things
that go wrong. Customer-driven product
features, such as fuel economy,
craftsmanship, quiet interiors and
high-tech in-car communications systems
are designed into the vehicle to deliver
an exceptional product at an affordable
price.
"The difference in Ford's products today
is significant," says Farley. "We're
proud of the progress we've made. It
feels good to be able to deliver
great-looking vehicles and
industry-leading quality at an
affordable price in every sense of the
word."
Ford, Lincoln and Mercury vehicles are
marketed in the Sultanate by Arabian Car
Marketing, a part of the renowned Saud
Bahwan Group, with Service and Parts
network that stretches across the
Sultanate, over 98% parts availability -
and Ford Privilege Card – which provides
24 hours On-road assistance from AAA,
Oman’s premier On-road Assistance
Service Providers. For more information
and latest offers from Ford, logon to
www.fordoman.com
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