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As impressive as Ford’s technicians are for building the latest Mustang at the top of the Burj Khalifa (the world’s largest building), it is only the latest step the company has taken to target the premium end of the sector.
The year 2015 will see Ford launch six new models into the market. These will mainly be upgraded models of the Focus, Mondeo and S-Max. Next year will also see Ford ramp up its new premium Vignale brand and increased availability of the Mustang. As sales figures over 2014 have shown, it is the premium end of the car market that has been most successful. Ford has decided to try and take on BMW, Audi and Mercedes with its new, luxury Vignale brand.
Part of the company’s premium concept starts from when the customer walks into the showroom, all the way through to them driving a car off the forecourt. Of the 530 showrooms around the UK, only 65 will be converted to offer this service. On the back of improved awareness and numerous appearances in blockbuster films the company has also decided to make its iconic Mustang more widely available in the UK, and then later around Europe. This will incur increased costs and the benefits are only likely to be staggered over the course of time.
Shares in Ford have not been above $19 since August 2001, and this ambitious turnaround plan is aimed at finally changing that. The backdrop of low oil prices has undoubtedly helped but a broader improvement in global economies might also be required for this to transpire. The first hurdle will be the $16 level where both the 200- and 100-day moving average are converging.