Friday, August 14, 2020

This is Why We Got the Ford Territory Instead of the Escape


Having settled the question surrounding the Ford Territory’s paternity, the next obvious question on everyone’s mind was: is the Filipino consumer getting shortchanged? Why is Ford Philippines offering the Territory when they could have brought in the Escape or Kuga instead?

True to form, there’s nothing off limits to Ford Philippines’s managing director PK Umashankar who had this to say:

“The decision to bring in a new product is a function of many things. We have to determine things like relevance for the market, speed at which we can bring it to market, and at a price that’s competitive. For Filipino consumers, in particular, it’s also important that we source parts easily. In our Ford global showroom so to speak, the Ford Territory meets those criteria. We are proud to say that the Philippines is the first market in Ford’s International Market Group to get the Territory.”

So why not the Escape or the Kuga?

“First, we have to make sure we bring in the technology, capability, and drive dynamics that consumers expect from Ford. From there, we looked at the business plan, and while we did consider the Escape and Kuga, remember that there’s a North American and European cost element involved. Second, we also have to consider parts, if they’re going to be easy to source or not. In the end, we concluded that the Ford Territory is the one that met our criteria.”

True enough, while the Escape is a recognized nameplate in the Philippines (it was made locally, and exported from here at one point), its second coming wasn’t as warmly received in 2015. At the time, it was well-speced, and surprisingly well-priced to take on the compact SUV big boys. Alas, it didn’t do too well, and pretty much faded into oblivion just a year later. If Ford were to try the same play again, well, you know what they say about doing the same thing over and over and expecting a different result, right?

Plus, if Ford were to bring in the Escape or Kuga, and price it in the high 1.9 to 2 million pesos, they’ll end up in a shrinking segment due to the existence of the mid-sized 7-seater SUVs/PPVs (remember, they have the Everest). It makes more sense for Ford to battle it out in the P 1.1 million to P 1.3 million price bracket. Not only are they giving their very own mid-sized SUV some breathing room, but they’re competing in one of the fastest growing segments locally.

6 comments:

  1. So what happens to the Escape now, orphaned? That's the problem with these American brands every so often that's what they do if a nameplate doesn't have the desired sales performance. Their business plan sucks. Remember, the Lynx? Is the Ford Focus still around? Owners of these cars are left with an orphaned, unwanted love child.

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    1. Escape was quietly discontinued when the stocks ran out in 2016/2017. It ever returned after that. Same with Focus. For Focus though, it was a regional decision to stop production in Thailand. Some markets though like Taiwan continue to get the Focus, but their sourcing has changed.

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  2. I'm wondering why Ford PH couldn't just source the Escape from China as it is also manufactured there. It may be a little more expensive than the Territory but at least no one will question its "Ford-ness"

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  3. Escape is still existent in Americas and Europe, even has a plug-in hybrid variant. But at the price it was being sold, local buyers gravitated towards bigger and diesel-powered SUVs.

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  4. Ford hasn't been relevant in any spaces right now.

    They should just give up and quit.

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  5. Ford PH brought this unknown Territory SUV because it's cheap to make and it's made in China by its its partner JMC.

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