Why have your business plan be a lottery?


W G Greig

Member
Nov 22, 2018
6
As a recent rejected applicant, I have to get this off my chest...

There are mid-engine sports cars available today from Audi, Lamborghini, Lotus, McLaren, Ferrari, Acura, Bugatti and soon Chevrolet. Am I leaving anyone out? It's probably--what would you guess--a 20,000 + unit segment. Could the Ford GT get consistent demand for 1000 units a year? Seems plausible. That would be $500 million of revenue, with a 20% operating margin pretty standard at that price point. So why is Ford leaving potentially $100 million in profit on the table by not just bringing the car into the model lineup on an ongoing basis and figuring out how to produce it in-house? And on the other hand, what is the "branding" benefit of rejecting 95% of what would have to be considered your best and most loyal customers?
 

Kayvan

GT Owner
Jul 13, 2006
4,782
This notion of being “rejected” is absurd.

Take the $500K (and sales tax) invest it in the S&P 500 for 3-5yrs; save the insurance, storage, tires, service expenses and do same.

Then buy a used one in 2023-25.

You will be in same place; financially.

That’s what I’m doing.

No one can restrict the laws of economics.
 
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Stef

GT Owner
Mark IV Lifetime
Le Mans 2010 Supporter
Apr 5, 2009
1,112
Southern California
I can appreciate a good plan, best of luck with that. My 2 cents, that it will be more like 2033-35 that the investment growth will be that much, which you will need as life happens and these cars (NFGT) will approach 1960's GT40 values, and that you can even find a willing seller.
 

Specracer

GT Owner
Mark IV Lifetime
Nov 28, 2005
7,162
MA
Your 1st post, welcome to the forum (I think)
 

Xcentric

GT Owner
Mark II Lifetime
Jul 9, 2012
5,213
Myakka City, Florida
$500 million revenue per year? Pfft. Lost in the rounding. F-Series sales produce that in about four days.

Ford should invest in, or contract for, the eight tub autoclaves required for 1,000 cars/year? And 4X the assembly line? After three years, I think they've barely figured out how to get to 250/year. After all that, the $$$ are still decimal dust.

And! The pissed off owners of a car they thought was going to be 500 cars exclusive...then 1,000 cars...now 1,350 cars would be something to reckon with.

"Rejecting...your best and most loyal customers." Please. Yeah, there have been a couple of "I'll never buy another Ford" guys on here. I don't think anyone misses them.

Hmmm. Now that I think about it, I may be a "I'll never buy another Ford" guy. I have no use for trucks. Max tow rating of a 2020 Explorer is 5,600 lbs. Nope, that won't cut it. Ford rejected me! 😩😢😭
 
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dbk

Admin
Staff member
Le Mans 2010 Supporter
Jul 30, 2005
15,247
Metro Detroit
There are mid-engine sports cars available today from Audi, Lamborghini, Lotus, McLaren, Ferrari, Acura, Bugatti and soon Chevrolet. Am I leaving anyone out? It's probably--what would you guess--a 20,000 + unit segment. Could the Ford GT get consistent demand for 1000 units a year? Seems plausible. That would be $500 million of revenue, with a 20% operating margin pretty standard at that price point. So why is Ford leaving potentially $100 million in profit on the table by not just bringing the car into the model lineup on an ongoing basis and figuring out how to produce it in-house? And on the other hand, what is the "branding" benefit of rejecting 95% of what would have to be considered your best and most loyal customers?

The GT was designed to fit a budget and a timeframe that would get it racing in France by June 2016. Road car decisions were made in service of the race program and you cannot now change the way it's produced. The volume limitations of the GT are what they are because of what the car is.

All of the other manufacturers you mention build consumer-focused road cars designed as volume propositions for the purpose of making money. They are apples and oranges. If you were going to build 1,000 or 2,000 cars a year, you would start out by designing an RTM car that has you popping a completed tub out of a 3500 ton press every half hour.
 

Sinovac

GT Owner
Mark II Lifetime
Jul 18, 2006
5,862
Largo, Florida
It’s a homologation car man. The car wouldn’t exist but for the racing program. The factory race program is over. People who got the most recent allocations are lucky Ford extended the production run as much as they did.
 

D06GT19GT

GT Owner
Aug 23, 2018
61
The marketplace is littered with sportscars that did not sell as well as expected. The last FordGT could be bought under sticker at the end of its production run. It is better to restrict supply as these cars are not money makers - they are halo makers. The NFGT is a brilliant move for Ford and has written them back into the LeMans history books. The ROI on that is hard to measure but should keep some luster on a brand that appears to be moving away from racing...
 

vyprgt2

GT Owner
Mark II Lifetime
Sep 9, 2005
609
CA
There are mid-engine sports cars available today from Audi, Lamborghini, Lotus, McLaren, Ferrari, Acura, Bugatti and soon Chevrolet. Am I leaving anyone out? >>>>

Alfa Romeo, BMW and Porsche
 

W G Greig

Member
Nov 22, 2018
6
Message heard -- I'm not trying to be "I'll never buy another Ford" … I just thought it would be worth exploring why they wouldn't make it an ongoing part of the model lineup.

I think my plan B might be to get a race car instead...
 

SYCO GT

GT Owner
Mark II Lifetime
Sep 9, 2006
5,046
California
I think my plan B might be to get a race car instead...

That's in agreement with your Plan A. ;) Because the NFGT is essentially a race car.

And your thread raised some interesting and informative perspectives. Enjoy your quest, I'm sure your race car will be something special.
 
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Gary

GT Owner
May 11, 2006
478
Festus, Missouri
Whats a 14 year old Viper worth? What a 14 year old Ford GT worth? I don't think we want Ford to turn the GT into a Viper.
 
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