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Wednesday, July 8, 2009

Ford Launches Transit Connect Distribution in U.S. -- WardsAuto.com

ROYAL OAK, MI Ford Motor Co. today begins shipping the Transit Connect compact commercial van from a port in Baltimore to dealerships in the Eastern U.S.


The vans, which are assembled in Turkey, also will be distributed from a port in Los Angeles as the rollout progresses. To date, Ford has some 3,000 pre-orders for the vans, which are aimed at small businesses.


Over the past several months, Ford has sent teams on a 14-city tour to visit small-business owners and fleet operators. Of the 5,000 potential customers contacted, about 30% have said they plan to further investigate the vehicle, says Len Deluca, Fords commercial sales and marketing director.


Thats a pretty significant number, he says. We feel good about that.
While the Transit Connect occupies a white space in the market place here, meaning it has no direct competitors, Deluca admits it is launching in a depressed economy that has taken a toll on small businesses.


Obviously, the economy is tough right now. But when you start thinking about the cost of ownership and fuel economy, its a good time to launch this vehicle, he tells Wards at a Transit Connect launch event here.


The van, powered by a 136-hp 2.0L 4-cyl. gasoline engine mated to a 4-speed automatic transmission, achieves an estimated fuel economy of 22 mpg (10.7L/100 km) in the city and 25 mpg (9.4 L/100 km) on the highway, Ford says.


The 2.0L engine is very reliable, Deluca says, noting there are 3.8 million Ford vehicles on the road today equipped with the same mill.


The fact Transit Connect has no direct competitors should go a long way in helping bolster sales, Deluca says, noting that currently small business owners currently have had to repurpose vehicles that really dont fit their needs.


In the past, commercial customers only had two choices to meet their needs, he says. Either they bought a vehicle that was light capacity, such as a minivan, SUV or cross/utility vehicle, or a vehicle (with) high capability and built for work.


The small business owner had to repurpose the vehicle and make compromises, and that causes inefficiencies that lead to higher costs, he adds.


The Transit Connect features dual-sliding doors on either side, as well as rear doors that open 180 degrees, making loading and unloading easier. Ford offers an option in which the rear doors can swing 255 degrees. Small magnets hold them to the sides of the vehicle when fully opened.


The van boasts a cargo capacity of 135 cu.-ft. (3.8 cu.-m) and can accommodate loads up to 6.5 ft. (2.0 m) in length and 4.7 ft. (1.4 m) in width. You can reach in and touch any area of the cargo space, Deluca says.


Payload capacity is 1,600 lbs. (726 kg), which Ford says is greater than some fullsize pickups.
Transit Connects cargo area also can be equipped to accommodate specific needs. When placing their orders, customers can have the compartment configured by custom outfitters Adrian Steel Co., Leggett & Platt Inc. and/or Sortimo International Ltd.


The Transit Connect is part of a family of commercial vehicles offered across Europe and has helped boost the auto makers share of the European light- and medium-duty commercial-vehicle market to 34%.


Ford says it has sold more than 600,000 Transit Connects in 55 countries on three continents since introducing the vehicle in 2002 as a 03 model.


While successful overseas, Deluca declines to reveal how many units Ford expects to sell annually in the U.S. in Canada. Right now, were relying on what the market tells us, he says. But through August, all (planned) wholesale (units) are sold. So were on track to be where we think were going to be.


The Transit Connect can be equipped with Ford Work Solutions, which consists of an in-dash computer with Internet access; Tool Link, a radio-frequency identification system (RFID) for tools and other supplies; Crew Chief, a fleet telematics and diagnostic system; and Cable Lock, a security system used to tether large, expensive tools to the truck.


The various elements of Ford Works Solution can be ordered individually, if desired, Deluca says, noting the optional system has garnered a lot of interest from potential customers.


The Transit Connect may cannibalize sales from Fords E-Series cargo vans, Deluca admits, but internal marketing studies suggest 85%-90% of sales will be conquests.


If you think about it, they are two different buyers, he says. E-Series buyers need the capability. This is tailored for small businesses that dont need heavy-duty capability.


The Transit Connect starts at $21,475, including destination charges and will be included in the Cash for Clunkers program. Fleet units will not arrive in time, so small business will be able to order retail and get the discount.


Ford next year will offer an electric-powered Transit Connect developed in conjunction with Smith Electric Vehicles, a leading European electric-commercial vehicle upfitter.


The Transit Connect is sold in either van or wagon configurations, with the latter equipped with three rear seating positions. The vans will be exported from Turkey in wagon configuration, leaving them open to modification.


This strategy allows Ford to dodge the so-called U.S. chicken tax, a hefty tariff of up to 25% which applies to commercial trucks, says spokeswoman Anne Marie Gattari.


Theyre all ordered as wagons, and then its up to the customer to modify them as they would like to, she tells Wards.
The tariff began in 1963 as a reaction to Europe, which tripled its levy on imported chickens. The tax has remained on the books through the years, serving to protect the Detroit Threes pickup-truck business from imports.


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