Coronavirus impact

mattsaradan

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Anyone hear anything about coronavirus impact? I have read that Ford has suspended all travel for its employees. Wondering at what point this would impact timing for production and delivery of Mach E?
 

hybrid2bev

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Anyone hear anything about coronavirus impact? I have read that Ford has suspended all travel for its employees. Wondering at what point this would impact timing for production and delivery of Mach E?
One minor correction. We’ve suspended travel for employees that are not doing business critical functions. Business travel is allowed provided that it 1) is essential to Ford’s operation, 2) can only be completed by physically being present, and 3) doesn’t create an unacceptable health hazard.

Vehicle launch operations obviously mostly can’t be done virtually so must be done in person and are business critical. So those employees may still travel if absolutely necessary.

The Mach-E launch may be minimally impacted by the travel restrictions, but I don’t think it will be noticeable. The business of running the company will not stop. The Mach-E launch is too important to the company to let it slip unless it’s completely unavoidable.

Things that can be done virtually instead of in person are being done to keep operations moving and help protect employees.
 
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mattsaradan

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One minor correction. We’ve suspended travel for employees that are not doing business critical functions. Business travel is allowed provided that it 1) is essential to Ford’s operation, 2) can only be completed by physically being present, and 3) doesn’t create an unacceptable health hazard.

Vehicle launch operations obviously mostly can’t be done virtually so must be done in person and are business critical. So those employees may still travel if absolutely necessary.

The Mach-E launch may be minimally impacted by the travel restrictions, but I don’t think it will be noticeable. The business of running the company will not stop. The Mach-E launch is too important to the company to let it slip unless it’s completely unavoidable.

Things that can be done virtually instead of in person are being done to keep operations moving and help protect employees.
Thanks for the update and information!
 

ChasingCoral

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Thanks for providing this input. You’rea valuable resource to this community.
 

hybrid2bev

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Word is that pre-production cycles are still on schedule. The situation is obviously fluid but as of now still on track for a 'decent number' of deliveries in Q4 2020.

Side note:
The lack of bold colors available for the Mach-E has been raised to upper management. Probably too late to do anything about it for 2021 models, but now they know of the concern.
 
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mattsaradan

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Word is that pre-production cycles are still on schedule. The situation is obviously fluid but as of now still on track for a 'decent number' of deliveries in Q4 2020.

Side note:
The lack of bold colors available for the Mach-E has been raised to upper management. Probably too late to do anything about it for 2021 models, but now they know of the concern.
Thanks for the update - keep 'em coming!
 

dbsb3233

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My guess is that the bigger impact from coronavirus relating to the Mach-e will be to consumer demand. The stock market is tanking, businesses are being forced to suspend operations, many are starting to get worried about their jobs. Much of public mindset is shifting into survival mode (a gross overreaction IMO, but it's happening anyway). That's bad news for the sale of high-$$ product sales. Like a $60k Mach-e.

Personally, I'm still planning on getting a Mach-e, but I'm a little less sure of my timing now. I might decide to hold off a bit. Which could mean passing on my order slot (May-ish?). I might try to loop back around the end and grab a vehicle from dealer stock in 2021. But ONLY if it looks like the $7500 federal tax credit hasn't been used up. I'm guessing the economic impact from coronavirus might slow sales enough to extend that 200k vehicle sales quota out an extra quarter or two.
 

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I'm of a similar mindset, especially if Ford doesn't reduce the UK price of the extended range model to qualify for the £3000 grant (as Tesla appear to have done)
 

SJ_Okay

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I'm of a similar mindset, especially if Ford doesn't reduce the UK price of the extended range model to qualify for the £3000 grant (as Tesla appear to have done)
I think all zero emissions vehicles qualify for the grant, regardless of their cost. It used to be capped at £40k cost for vehicles with a certain level of CO2 emissions, but I believe that has changed now and applied to all vehicles that have zero emissions, and less of any allocated to plug or self charging in hybrids. I might be wrong, but I believe I recently read this on Gov.uk
 

MadScientist

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I thought this at first, then along came the small print specifying a 50k cap. The luxury tax has been scrapped but no grant for >50k list price cars
 

pbojanoski

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My guess is that the bigger impact from coronavirus relating to the Mach-e will be to consumer demand. The stock market is tanking, businesses are being forced to suspend operations, many are starting to get worried about their jobs. Much of public mindset is shifting into survival mode (a gross overreaction IMO, but it's happening anyway). That's bad news for the sale of high-$$ product sales. Like a $60k Mach-e.

Personally, I'm still planning on getting a Mach-e, but I'm a little less sure of my timing now. I might decide to hold off a bit. Which could mean passing on my order slot (May-ish?). I might try to loop back around the end and grab a vehicle from dealer stock in 2021. But ONLY if it looks like the $7500 federal tax credit hasn't been used up. I'm guessing the economic impact from coronavirus might slow sales enough to extend that 200k vehicle sales quota out an extra quarter or two.
Just curious @dbsb3233 , if you care to share. You list your occupation as "retired". I assume your income is reasonably fixed right now and any recent stock losses are most likely only a short term proposition with little effect on your income now or in the future. Why would you delay a purchase? Obviously no right or wrong answer, but I'm curious of your thinking.
 

dbsb3233

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Just curious @dbsb3233 , if you care to share. You list your occupation as "retired". I assume your income is reasonably fixed right now and any recent stock losses are most likely only a short term proposition with little effect on your income now or in the future. Why would you delay a purchase? Obviously no right or wrong answer, but I'm curious of your thinking.
I am retired, living off of investments. For me, it's not so much a matter of having enough money (I do), it's about managing it well. Most of the $55k for my Mach-e will come from additional IRA withdrawal (above my norm), in part to make sure I push my taxable income high enough to make sure I have $7500 in federal tax liability to maximize the federal tax credit. So the timing of my withdrawal (and where the market is at that time) is a bit more important than it would be than it is for my normal monthly living expenses withdrawals.

I'm not one that gets worried about the stock market. It'll bounce back like it always does. Gotta take a long-term approach to it. Monthly withdrawals will even out over time. But large one-time withdrawals for something special like this are a bit different, and the timing matters more on those.

Beyond the cash flow matter, there's two other reasons I wouldn't mind delaying a bit. One is the chance of better build quality. First-year models are already likely to have more quirks as they figure out some things they got wrong and fix them in subsequent vehicles off the line. That's also true mid-year as well. For example, we have two 2013 (first year) Escapes now. The first was early off the assembly line. It's got a few little issues that the later one doesn't.

The other reason is basic need. We really don't need a new car just yet. One of the Escapes is going to be handed down to a family member to replace their vehicle that's getting long in the tooth. But so far it's still running ok. We probably won't actually need to replace it for another year or two. I've decided I want a Mach-e as the new vehicle for us in that replacement chain, but only if I can get the $7500 federal tax rebate. I just wanted to make sure I got one soon enough to get that full credit, but if it looks like it will be there in 2021, that timing may work better for me. It also gives me more control over the timing. I fear an order placed in mid-2020 may create a delivery right around the end of the year. A delivery delay from Dec to Jan could really screw me up on tax timing.

Still evaluating it all though.
 

hybrid2bev

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Our work from home test on Monday just got extended indefinitely...

Beginning Monday, March 16, we are announcing that much of our Ford workforce, including agency and purchased service people, in North America, Europe, International Markets Group and South America, will be asked to work remotely until further notice. Exceptions will be only for roles that are 1) business-critical and 2) cannot be done effectively outside a Ford location – such as those working in manufacturing facilities, parts distribution centers and sales positions.

Our top priority is keeping our employees, customers and other stakeholders safe while doing whatever is reasonable to keep Ford running.

Since the corona virus issue is rapidly diminishing in China and our team there already has begun to return to work, this action does not apply to our team in China.
 

SJ_Okay

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I thought this at first, then along came the small print specifying a 50k cap. The luxury tax has been scrapped but no grant for >50k list price cars
Where have you read this? Because I’ve read the opposite... see pic below.

DAC42C3B-5E79-4FF0-ABE0-2B400A47AF82.jpeg
 
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