According to a report by Reuters on May 23, Ford Motor Company hopes that the high-end version of its mainstream brand will compete with other luxury car manufacturers and end its years of losses in the European market.
It is reported that most of Ford's opponents have adopted the same strategy to chase the same high-end customers, so the strategy is considered to be more risky. But Ford's European headquarters executives are confident in this strategy and believe they can convince consumers to spend more money on high-end models. Ford's high-end models use leather interiors, cast in chrome and will provide first-class customer service. To this end, Ford deliberately launched a new trademark Vignale. In order to differentiate Vignale from the low-end products of the same production line, Ford will build 500 special customer receptions at 2,400 European agents.
According to a research report by IHS Automotive, before 2017, the company will launch at least 12 upgrade models, which will help the company achieve a significant increase in sales in Europe by 2020, about 1.65 million units. Up to 25%.
The successful implementation of this strategy will enable Ford to achieve lasting profits in Europe. It is reported that in the past two decades, the company has been suffering from a severe recession in the European market. Since 2010, there has been almost no profit in this market.
As the second-largest automaker in the United States, Ford spent years looking for the best models to work in the fiercely competitive market in Europe. In this strategy, Ford will focus more on its own brand, targeting the wealthier Ford consumers and customers considering the first purchase of high-end cars. The company also locked in the German high-end car brands BMW, Audi and Mercedes-Benz consumers.
Ford European Sales Director Roelant de Waard said that many people think this strategy is difficult to achieve, but it is not. He pointed out that one of the owners of every six Ford S-MAX cars was driving a German luxury car. In addition, Ford will start selling the company's iconic Mustang sports car in Europe in 2015, and does not rule out the possibility of launching high-end Lincoln brand cars in the future.
Another goal of Ford's new strategy is to increase the share of retail and corporate buyers who are willing to pay a premium for cars, thereby reducing the reliance on car rental companies' sales profits, even if it means a loss of market share.
The change in target consumers has enabled Ford to change its marketing strategy. Ford ended its 21-year sponsorship of the UEFA Champions League and began experimenting with digital media and sponsored technology fairs to attract business and technology buyers.
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