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October 10, 2008, 12:50 pm

Failure to launch: Ford Flex

As auto sales have cratered, some manufacturers and models have suffered more than others. Exhibit one is the Ford Flex. A brave attempt at rethinking the concept of the people-mover, the Flex has stalled at the starting gate. Its failure could cause some serious rethinking at Ford about its design and marketing, as well as at its competitors who are introducing similar vehicles.  Did somebody say “Chevy Traverse?”

Production of the Flex began in early June and television advertising popped shortly thereafter.  Rather than focus on the vehicle’s soccer-mom attributes or its novel, flat-roofed, channeled-side design. Ford  went a different direction. Really different.  Recent Ford models have come off as a bit stodgy, so marketers decided to position the Flex as kind of a dance club on wheels.  It was photographed against an inky nighttime background and shown from the front so its extreme length (it has three rows of seats) was not pronounced.

The campaign’s theme is “Electrifying the Night”  but customers aren’t turned on.  Ford had hoped to sell 75,000 to 100,000 Flexes a year but managed less than 2,000 (1969 to be exact) during September.  Do the math and you come up with sales of 24,000 annually. Competitors like the new Honda Pilot and the one-year-old Toyota Highlander didn’t have great months in September either, but still sold 5,192 and 5,729 units respectively (according to Automotive News).

“The Flex is a secret but it’s growing,” says Ford marketing boss Jim Farley.  He says he should have begun advertising sooner to draw buyers to the new model. “There aren’t a huge number of conquest customers coming in to Ford showrooms,” says the former Toyota executive. “It is harder to launch another new Ford crossover than it is a Yaris at Toyota.”

In Flex’s favor is that it is distinctive, well-executed, and scores well in independent tests.  But with a market heavily favoring high-mileage small cars, large ones have a hard time measuring up.  Flex is rated at 17 miles per gallon city; 24 highway.  “Even though it may get good gas mileage and have other positives, the Flex simply looks big,” says J.D. Power analyst Tom Libby.  “That puts it at a disadvantage from the start.”

The reception accorded the Flex should give pause to the folks at Chevrolet, whose own full size crossover, the Traverse, hits the market any day now. Do they go back to basics and tout cupholders, child seat anchors and DVD players? Or do they try to one up the Flex by putting more lipstick on the pig?

The Flex is a knock of the Scion Xb. It is just bigger and Ford is hoping people will more for an American car. Even in their adds they are trying to sell it hip – the Xb’s target market.

Posted By Dan, Vista, CA : October 24, 2008 2:54 pm

That’s the big three for you, release an expensive Suburban Utility Vehicle or crossover with bad gasoline milage at times when people cannot afford to buy such products. Their ads projected one thing and I did not buy it for a bit.

Posted By Craig K., Buffalo, NY : October 23, 2008 4:38 pm

It looks like a big Mini Clubman, call it a Maxi Clubman?? At least the Traverse shows some SUV qualities.

Posted By Mike, Randolph, NJ : October 22, 2008 2:38 pm

I want Ford to make it. But some of their ideas have really bombed. The Taurus became the 500 and stopped selling. The GT (race car) was priced to high ($200,000) and never really sold. The retro Thunderbird in 2000 cost over $45000 and was not very interesting and did not sell. Even the Explorer was plagued with bad tires and rollover problems. These problems and the low sales of the Flex are really hurting the bottom line.

John Cipolletti

Posted By John Cipolletti, Dearborn Hts., MI : October 21, 2008 12:14 am

That was a bad idea for a car. If you wanted a younger looking car, why not make something rounder, with awesome gas mileage? They never make anything with decent MPG, until recently. The bottom line will always have the final say…

Posted By Jon, Miami, FL : October 16, 2008 9:53 am

I think price is a big issue here. Just staying within Ford, it’s $4K more than a Taurus X equivalent with AWD etc.

Posted By justinbenson : October 14, 2008 11:37 am

If you ask me, the real issue with the Flex is that it is a big, three-row crossover vehicle with the ride-height of a car (it even uses Ford’s car standard for ground clearance).

Chevy will have a different beast to sell with the Traverse due to the fact it still has traditional SUV/CUV look. Not that it makes the pig that much more attractive…

Posted By JAy., Houston, T : October 10, 2008 3:49 pm
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Alex TaylorAlex Taylor III has received numerous honors for his coverage of the automobile industry, including 100 Notable Business Journalists of the 20th Century, three International Wheel Awards from the Detroit Press Club Foundation, and Journalist of the Year by the Washington Automotive Press Association. He worked at the Detroit Free Press before joining TIME magazine, where he wrote cover stories about Lee Iacocca and what was then known as the Big Three. At FORTUNE, he has expanded his coverage to the global industry, writing about such companies as Mercedes-Benz, BMW, Toyota, Honda, Nissan and China's SAIC. Taylor lives in Manhattan and walks to work.
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