FORD MOTOR CO: THE NEW LEADER IN RESALE VALUE GAINS

According to the research firm Automotive Lease Guide, Ford Motor Company’s car resale values rose an average of $2420. This is not only the most of any automaker, but it is also nearly four times the industrywide increase. Additionally, Automotive Lease Guide found that Ford Motor Company experienced the largest gain at 5 percent in “perceived quality”, which measures such values and consumer views of reliability. Ford’s resale gain for the first half of 2010 crushes the industry average of $616 from a year earlier.

“The perception is starting to catch up with reality,” Ford’s global marketing chief, Jim Farley, told reporters. “Resale value is the ultimate proof point.” Ford Motor Company has gained much of this sales and market share thanks to new and redesigned models such as the Fusion sedan. After three years, the Fusion’s resale value sits $1600 higher than that of the Toyota Camry. The research found that Ford’s ability to avoid a government bailout while General Motors Co. and Chrysler Group LLC reorganized in bankruptcy with federal aid “was very important in consumers’ minds.”

Farley states that improvements in perceived quality take a long time to establish. He goes on to say that this will be accomplished by reviving Ford Motor Company’s entire product line-up consistently over five years-plus. Ford is already well on their way in accomplishing this goal. Ford Motor Company’s huge gains can be attributed to the fact that it avoided a government bailout by borrowing $23 billlion in late 2006, just before the credit markets froze. Ford used this money to rebuild the quality and offerings of the Ford brand. Ford’s U.S. sales skyrocketed 33 percent this year through the month April, which is nearly twice the industry’s 17 percent gain.

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