Ford Mondeo IV - Ford demonstrates economic theory in action

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Fri 26 Mar 2010 16:47
Ford Mondeo IV - Ford demonstrates economic theory in action - idle_chatterer

HJ's news - Ford admits price rises went too far

I've long since thought (and commented) that Ford's pricing strategy was self-defeating, I guess they were playing 'game theory' in the hope that others would follow (look up oligopolistic markets and hockey stick demand curves), their rivals didn't raise prices to the same extent so Ford's strategy failed as the demand curve predicts that it might and they've had to change it. Quite a nice case study in economics actually.

As a company car driver who likes Fords this is good news.

Edited by idle_chatterer on 26/03/2010 at 16:50

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Fri 26 Mar 2010 17:17
Ford Mondeo IV - Ford demonstrates economic theory in action - mr.freezer

A pat on the back is due to the Ford marketing department for finally realising that a Mondeo was not worth more than a Passat, Insignia, C5 etc.

I realise that the Mondeo is quite good to drive so I too am not Ford bashing. (today)

In August of last year a Mondeo with the same engine and roughly the same spec as my C5 would have cost about 2 and a half grand more (list).

I am sure PSA, VAG et al suffered with currency fluctuations as much as Ford.

Edited by mr.freezer on 26/03/2010 at 17:18

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Fri 26 Mar 2010 18:34
Ford Mondeo IV - Ford demonstrates economic theory in action - kithmo

Ford claimed to have put up their prices due to the value of the pound dropping against the euro, but when the pound recovered they didn't put their prices down, they put them yet up again. If they drop their prices and throw in some mega discounts, I may consider buying a new one this year.
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Fri 26 Mar 2010 21:10
Ford Mondeo IV - Ford demonstrates economic theory in action - Graham567

Got my 2.0 litre Mondeo Titanium X(list£26,500) for £17500 brand new(pre reg) so there are discounts out there if you look for them.

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