Another Scalp for Ford - Territory Vs Adventra - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars

loxxr6 · 07-11-2004, 17:45

Holden's $5m Adventra handout
(Courtesy of Sydney Morning Herald)

Despite the 4WD sales explosion, Holden has slashed the cost of its Adventra and refunded part of the price, Toby Hagon reports.

The Ford Territory has claimed its first victory. Faced with disappointing sales, Holden has slashed the price of its arch rival off-road wagon, the Adventra, by $4000 and will refund that amount to those who have bought the car already -- a move which could cost Holden more than $5 million.

Private buyers will receive a $4000 refund while fleet buyers, who bought the car at a discounted rate, will get a smaller refund.

Holden predicted it would sell 400 Adventras a month but has sold less than half that. The June tally of 177 sales proved particularly disappointing during the biggest month of Australian new-car sales on record.

It took the Adventra's main competitor, the Ford Territory, just one month to overtake eight months of Adventra sales. Holden has sold 1355 Adventras since late last year. In June alone Ford sold 1372 Territorys.

"We positioned the car at a price we believed reflected the market place ... but there's a lot of pressure from all angles," says Holden spokesman Jason Laird, defending the move to discount the car less than a year into its life.

"We'd obviously estimated a certain number [of sales] a month and hadn't hit that. Value is becoming increasingly important. When you're looking at a market that's moving so fast and a segment that's splintered at a rate of knots ... prices are always being revised up and down."

Laird says the price cut is intended to sell more Adventras, currently available with a V8 engine only. A cheaper version of the Adventra, powered by Holden's new V6, is due in September. Industry pundits believe the V6-powered Adventra will need to undercut the cheapest all-wheel drive Territory, which sells from $42,990.

The last time Holden offered such a substantial discount or rebate was for the Piazza coupe in the 1980s. Customers were refunded $5000, or almost 15 percent of the $34,500 purchase price.

Holden denies that the Adventra will follow the Piazza as a flop. "Any historical comparisons in that regard are completely pointless," says Laird. "I think it means nothing more than a responsible car company needs to be focused on what appropriate price points are for its cars."

The Adventra move follows a range of price cuts across the Holden range in recent months. Holden attempted to move its brand upmarket by placing a premium on the price of its European imports but the public deemed the cars too expensive and sales slowed.

The medium-sized Vectra, small Astra and compact Barina have all had what the industry delicately refers to as "price realignments".

While the car industry is roaring along at a record pace, Holden is enduring a rough patch. Year-to-date figures released this week show that Commodore sales are down by more than 10 per cent in a market that is up 5.6 percent.

Two months ago, Holden announced plans to drop the Daewoo brand locally. Holden became a part owner of the troubled Korean company in late 2002, but Holden executives quickly determined that it would have cost too much for too long to make Daewoo profitable in Australia.

In your face Flanders - Homer Simpson

BA GT-HO · 07-11-2004, 18:00

Not hard to figure out they are not selling many because there are none on the roads!

I wonder how the Avalanche is doing?

XRchic · 07-11-2004, 18:33

Quote:

Originally Posted by BA GT-HO

Not hard to figure out they are not selling many because there are none on the roads!

I wonder how the Avalanche is doing?

We saw one a few weeks ago (Adventra) and my kids laughed at it. Cam actually commented that he reckons it looks like something he made at school! He is 6.

russellw · 07-11-2004, 18:38

Velvet Dictionary

Price realignment:n

A modern euphemistic term to describe the practice whereby a manufacturer reduces the price of a consumer good for one of the following reasons:

1. Somebody else is selling a better mousetrap cheaper.
2. The public proves to be not quite as gullible as the manufacturer believed.
3. The item is slower selling than meat pies at a Jewish convention.

Cheers
Russ

xdc351 · 07-11-2004, 18:39

Well, I guess that just shows how blatantly overpriced they were before if nothing else.

Go Ford, they're running scared now.

XRchic · 07-11-2004, 18:49

Quote:

Originally Posted by russellw

Velvet Dictionary

Price realignment:n

A modern euphemistic term to describe the practice whereby a manufacturer reduces the price of a consumer good for one of the following reasons:

1. Somebody else is selling a better mousetrap cheaper.
2. The public proves to be not quite as gullible as the manufacturer believed.
3. The item is slower selling than meat pies at a Jewish convention.

Cheers
Russ

I dont have a Velvet Dictionary... must get one of those....

RICHO · 07-11-2004, 18:53

That's 3 failed pricing strategies in a row now isn't it??

1. Vectra, Holden's Mid Size "BMW / Mercedes / Audi competitor" and aspirational car $5000 price drop
2. Adventra, Holden's SUV "X5 / Tourag / Audi competitor" and aspirational car $4000 price cut

As an FF they say good things come in 3's so here's hoping...

3. VZ Commodre, Holdens Large Car "BMW / Mercedes / Audi competitor" and aspirational family car....$xxxxxxxx price cut to be confirmed

ricthewheelie · 07-11-2004, 19:07

Quote:

Originally Posted by russellw

Velvet Dictionary

3. The item is slower selling than meat pies at a Jewish convention.

Cheers
Russ

Russ, sorry to be pedantic but its pork pies not meat

big_pete · 07-11-2004, 19:28

well it looks like ford has the upper hand in this battle!

i love how they where trying to downplay that the car is a flop!
"no we just overesteimated the the market value blah blah"
BULLCRAP, the car sucks and you know it!!

3Toed · 07-11-2004, 19:35

Pork isn't meat? Well bugger me...

Well done to Ford for such a great product.