The Kitchens, a retired couple from New Mexico, were disappointed to see Ford Motor Co. (NYSE:F) discontinue production of its Ranger pickup model. Owners of two Rangers, the couple are now looking at other competitive brands, obviously displeased with Ford’s decision and not willing to buy the larger F-150.
The sentiments of the Kitchens are shared by many more long-time Ranger owners who saw their favorite truck stopped from production in late 2011. Recent polls among Ranger owners reveal that half of them are willing to move on to a different manufacturer altogether.
Researchers discovered recently that about 50% of discontinued Ranger owners do not wish to buy another Ford vehicle and will take their money to manufacturers such as Chevrolet, Nissan and Toyota. For example, researchers Edmunds have found that the number of people who went to buy a Toyota Tacoma is twice greater than the number of people who went for Ford’s F-150. Analysts from TrueCar claim that Ford management may have been a little too optimistic about the percentage of Ranger owners who would switch to the more expensive F-150 model.
Retiring the Ranger has opened a gap in Ford’s catalog and it seems other car makers will be filling the demand in the compact truck segment. The bottom line is Ford losing more customers at a time when it should do its best to retain as many of them as possible, following its recall hiccups which we previously covered.
Ford is facing some serious losses in its European division with looming in-house projections of more than $1 billion. The company is slowly trying to consolidate its stock price, climbing more than $0.6 from its Aug 2 close below $9. However, Wall Street analyst EPS estimates for the current and next quarter shrunk by $0.03 over the last month.
Only the future can tell if Ford can live up to its customers’ expectations. Ultimately, if displeased buyers like the Kitchens family pile up, the company may be in for a long and unpleasant ride.
