R $ 40m in 24 hours: Ford agreed to “replace” the Ka for cars like a Mustang? – 04/21/2021

R $ 40m in 24 hours: Ford agreed to "replace" the Ka for cars like a Mustang?  - 04/21/2021

As fast as the new Ford name Mustang Mach 1, the speed of sound, was selling the model in the country, and in just 24 hours, the brand was able to exhaust the entire first batch of 80 units of the car that cost R $ 499,000 per copy.

Overall, Ford sold nearly 40 million reais (39,920,000 reais) in 24 hours. This gives about 1.7 million BRL every hour. If converted into a car, just over three Mach Mustangs are sold every hour. It is not easy.

It should be noted that less than three months ago, Ford ended all national production in the country, terminated the Ka and Ecosport line – a product designed and built in Brazil, that went global in the second generation.

To achieve the same value of R $ 40 million from the sale of Ecosport, considering the value Vibe table One of the most sought after versions before the end is the Freestyle 1.5 AT, for R $ 88,010 it will be necessary to sell 453 units.

In the case of Ca, the bill becomes larger. Given the value of the SE version with the engine 1.0 in the Fipe Table, the 753 units should score R $ 53,005.

Experts say: “The math is not simple”

With these numbers in mind, can you conclude that Ford was right to forgo more “popular” cars and focus on importing more expensive models? According to experts, this calculation is not so simple.

Firstly, because the cost of the Brazilian-produced car and the imported model is different and cannot simply be equalized.

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“The composition of the value and pricing between a car produced in Brazil and another that comes from abroad is completely different,” says one consultant. “Trying to reconcile them opens a“ black hole ”of variables.

Another problem is the margin of profit involved in each model. As previously Talking about UOL cars, And the added value of SUV cars Larger than in the aperture, for example. This allows brands to earn more money on every copy produced.

The same, of course, is true of the Mustang, which has been a market symbol over its 57 years of history. One of the sources consulted says: “Desiring one exclusive piece that little can have access to allows it to be more profitable in return for added value.”

“A Mustang would be in and of itself quite desirable, as the series with its wide range of color options would give you a bit more exclusivity. In a world of around 200 million people, with only 80 units at the first moment, you hardly ever come across another car on the street,” he adds. All this is important. “

One of the sources consulted adds the possibility for discussion: “Ford may have only R $ 10 in each MustangFor example, but it is brought to show what technology exists in the brand, in other products that will be imported and it indicates that it will not leave Brazil forever.

In short, the simple calculations shown above only show how much it would take selling each model to achieve the same amount Ford made with the Mustang Mach 1, but not necessarily the same profitability.

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Rather, it is important to remember this in a class Ford Ka, The profit per unit sold is one of the lowest in the market. “The dispute over the lowest cost sometimes outweighs the company’s profits,” says a former industry executive.

Finally, it’s worth noting that Ford already had a Mustang in its portfolio when it produced the Ka and Ecosport in Brazil. The sports car version imported here was the Black Shadow, which ended up retiring in the country with the arrival of Mach 1.

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About the Author: Osmond Blake

"Web geek. Wannabe thinker. Reader. Freelance travel evangelist. Pop culture aficionado. Certified music scholar."

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