Ford Motor Company (F)’s Feat in the Hybrid Segment is ‘Energizing the Whole Company’

The Ford Fusion Energi, which was launched in February, is expected to post its best month since the launch. In addition, the Fusion Hybrid also posted May as its best ever month. In fact, the Fusion Hybrid is recording the best turn rates of just 14 days in Ford’s showrooms. In prime markets like Los Angeles the turning rate is as good as 10 days. Automakers consider turn rates of below 60 days to be decent, which automatically makes Fords conversion rate to be exceptional. In fact Ford is unable to keep its supply in pace with the enormous demand for its hybrids as it is selling faster than it manufactures these vehicles.

O’Donnell said that the company dealers are quickly running out of the hybrid stock in showrooms. Ford assembles its hybrids at the huge Michigan Assembly Plant, which is the only production facility of the company which can make five distinctive fuel efficient powertrains using one assembly line. The automaker is working very hard to bring as many hybrids as possible in the market so that it is able to meet the robust demand. The company’s sales analyst at US Erich Merkle said that the hybrid success ‘is energizing the whole company’.

My takeaway

Auto giants are witnessing solid sales in this segment, but what remains to be seen is if these numbers will remain unaffected once the government subsidies and other incentives offered by the automakers stop. Ford is posing a threat to Toyota’s legacy of being the top hybrid seller. The war of the hybrids is now not only restricted to the fuel economy of the cars, but has extended to better styling, pricing and comfort as well. It will be interesting to see how Ford arms itself to unseat Toyota and Honda, the rulers of hybrids.

The article Ford’s Feat in the Hybrid Segment is ‘Energizing the Whole Company’ originally appeared on Fool.com and is written by Rajesh Marwah.

Rajesh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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