Ford Motor Co. is killing off its C-MAX Hybrid and C-MAX Energi, a model line that was supposed to challenge the Toyota Prius and put a stake in the ground for Ford in the plug-in EV space.
The C-Max is practical and roomy–a multi-activity-vehicle (MAV) that had reasonable all-electric range (21 miles). In many ways, I preferred the C-Max to the Prius when it first hit the market for its interior space management, higher seating position, etc. So what went wrong that has mass discounts on the vehicle happening–like this one.
1. Ford followed the Prius formula of having a designated brand name for a hybrid and EV, as opposed to relying exclusively on hybrid or plug-in versions of existing models, as it does with Ford Focus and Ford Fusion. Advertising and marketing for the C-Max brand has been limp at best. Story-telling of this car has been very poor post launch.
2. Ford dealers haven’t much liked these vehicles, especially the C-Max Energi plug-in, since launch. Car dealers, especially dealers of domestic brands, have not embraced the retail selling and marketing of plug-in hybrids. Add to that the bulbous styling of the C-MAX, done for the European market, is not in keeping with U.S. style norms.
3. Unlike the Prius, the C-MAX was launched and has been trying to get acceptance and awareness while gas prices have been relatively low. Ford is selling record numbers of pickup trucks and SUVs. There is limited natural demand for plug-in hybrids, and the demand there can be met by a wider of array of vehicles with increasingly good fuel economy.
4. The fuel economy is not great, and the 47 miles combined mileage promised at launch for the hybrid was never reachable in the real world. Reporters and owners began to grouse in articles and public forums that there mileage was far below Ford’s stated claims. Ford got sued, and ended up lowering the EPA-certified fuel economy of the C-Max hybrid twice and the C-Max Energi once.
In order to reach 47 mph initially promised in the C-Max, Ford chief engineer John Davis explained to me in 2013 when the problem first presented that the driver has to be engaged on a series of driving habits, plus the the climate conditions have to be optimal in order to reach the initially stated mileage. Drivers have to do a lot of letting up on the throttle, not punching the accelerator and keeping speed below 60 mph. Davis conceded, "Not everybody wants to drive that way."
5. Ford has seen its stock stagnate while the broader market has been reaching all-time highs. Ford’s senior management is cutting low-performing and unprofitable models and trim models to cut all over costs and maximize the company’s optimization of its pickup and SUV business, as well as its future EV plans.
6. The Ford Fusion Hybrid and Fusion Hybrid Energi, which have drivetrains based on the C-MAX have outsold the C-MAX line 58,000 to 15,500. Ford is trying to take the learning from the C-Max brand and marketing shortcomings and will offer a new EV compact line that we think may be called Model E, a play off the original Model T sold by Henry Ford, arriving in 2019.
Selling hybrids and plug-in hybrid EVs is a tricky business. Few have gotten the story for consumer exactly right, and with gas prices hovering well below $3.00 a gallon in most parts of the country, an ungainly looking hybrid or plug-in is a mighty tough sell.
