Ford to cops: Crown Vic is out

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Friday, August 28, 2009

Ford to cops: Crown Vic is out

Automaker faces fight as it pushes replacement Taurus

Dearborn -- In June, Ford Motor Co. invited the heads of some of the nation's largest police fleets to Dearborn to talk about the future of police cars.

For nearly two decades, that market has belonged to Ford's Crown Victoria -- a vehicle that departments from coast to coast have come to respect for its toughness and reliability. Now the Crown Vic is running out of road.

"They told us that 2011 would be the last year they build the Crown Vic," said Larry Tagawa, commander of the Los Angeles Police Department's Motor Transport Division. "But Ford also made a commitment to support departments with a new vehicle."

Then Ford took the assembled police brass out to its test track and handed them the keys to its new Taurus.

Most motorists would be happy to trade in their old Crown Vic for Ford's latest flagship sedan. It is faster, safer and gets better mileage. But the Taurus, like most modern cars, lacks some of the features that have made the Crown Vic so popular with police.

That is one reason why Ford has yet to make a final decision on the Crown Vic's successor. But there are others: new competition -- not only from Ford's cross-town rivals, but also from a new start-up that promises to give police the vehicle of their dreams -- and the Canadian Auto Workers, which is keen to protect thousands of jobs at the plant in St. Thomas, Ontario, where the Crown Vic is produced.

"We've got some big decisions to make, and we're making them," said Jim Farley, head of global sales, marketing and service for Ford. "We have no intention of walking away from our share of that market."

Ever since General Motors Co. stopped production of the Crown Vic's main competitor -- the Chevrolet Caprice -- in 1996, the Crown Vic has been America's police car. It was crushed by the falling rubble of the World Trade Center and transported Paris Hilton to prison.

About 85 percent of the approximately 75,000 police cars sold in the United States each year are Crown Vics.

That is not a huge number of vehicles, and margins on sales to public agencies are notoriously slim, but analysts say it is still a profitable business for Ford.

"The majority of the investment in the Crown Vic was paid off so long ago that they're basically a license to print money," said auto analyst Jim Hall of 2953 Analytics LLP in Birmingham. "They also have zero marketing cost."

While that would not be the case initially with a vehicle like the Taurus, Hall said it would not take too long for it to replace the Crown Vic's contribution to Ford's bottom line.

But Ford Americas President Mark Fields said the police business provides other benefits to Ford that go beyond the bottom line.

"Every municipality has police, so you have Ford product everywhere across the country," Fields said. "It reinforces that Ford is part of the community."

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