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Ford's Expedition SUV snubbed by Consumer Reports

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#1 ·
October 8, 2002
BY TOM BROWN
REUTERS
Detroit -- One of Ford Motor Co.'s biggest and most profitable vehicles, the muscular Expedition full-size sport-utility vehicle, gets snubbed in the latest issue of Consumer Reports magazine.

The magazine, whose product rankings are often seen as key to shopping trends across North America, recommends three SUVs in its November edition, led by the all-new Pilot from Honda Motor Co. Ltd.

It also puts the Sequoia from Toyota Motor Corp. and Chevrolet Tahoe from General Motors Corp. on its jealously-guarded "recommended" list.

But in a blow to Ford, which has been hurt by a rash of quality problems over the past two years, Consumer Reports said the redesigned Expedition could not be recommended because its reliability was still unknown.

The world's second-largest automaker started building the new Expedition in May at its Michigan Truck assembly plant outside Detroit. It has touted the truck, and its impressive towing muscle, for various features including its spacious and flexible interior and options like an automatic folding third-row seat.

Ford has also promoted the SUV's smooth ride and handling, helped along by an independent rear suspension and an array of safety features that come with the vehicle.

But in its ranking of the four SUVs, Consumer Reports complained that the Expedition was the slowest in terms of acceleration and also the most gas-thirsty.

"The (Expedition's) third-row seat is the roomiest of this group, with enough width and legroom for three adults. Cargo space is generous and loading is easy," said the magazine, which credits the vehicle with several improvements over its predecessor.

"However, the 5.4-liter V8 lacks power and delivered just 12 mpg overall, twin failings that undercut this otherwise well-conceived package. Reliability for the redesigned version is not yet know; previous models have been average," it said.

Potential long-term damage

Analysts say the Expedition and new Lincoln Navigator SUV, also produced at Michigan Truck, are among the most important vehicles in Ford's lineup and critical to its bid to return to profitability after last year's loss of $5.45 billion.

It remains to be seen what the Consumer Reports' rating will mean in terms of sales for the Expedition, which rose 1.8 percent in September but were down nearly 16 percent in the first nine months of the year. Some analysts say the influential magazine, published by Consumers Union, can do considerable harm to a brand.

"All of our studies show that it really does damage to immediate sales," said Art Spinella, who heads heads CNW Marketing Rsearch, a Bandon, Oregon-based auto industry tracking firm.

"If word gets out and is passed along word of mouth, it can do damage for literally years," he said. "Perception is always reality," Spinella added, saying the quality of the Expedition mattered little as long as it got bad press.

Jim Hall, a Michigan-based industry analyst with AutoPacific Inc., said he doubted the Consumer Reports treatment of the Expedition would hurt much though. Among other reasons, Hall said the magazine had raised questions about its own objectivity.

"If a car is new and you can't rate it for one manufacturer you can't rate it for any other," said Hall. He was referring to the fact that Consumer Reports rated the Honda Pilot, which is all-new but based on the older Acura MDX, as reliable while saying the Expedition was too new to rank for reliability.

Ford's chief North American sales analyst, George Pipas, said he would not take issue with the magazine's methodology, however.

"You can't argue with Honda's well-deserved reputation, can you?" Pipas said.

"We'll get there I think. Rome wasn't built in a day and I think the new Expedition will prove to be deserving of this recommendation at some point."
 

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