Review
Rather than selling off parts of its business and auctioning some of its most beautiful concept cars to the highest bidder in an attempt to make the company balance sheet look more healthy, I am going to suggest the patented Kirk Cash Crisis Solution – stick to your key market segments. And what better time to reveal my financial strategy than in the course of this road test on the new Ford Fusion, a car designed with the smallest market niche in mind.
For those not in the know, the Fusion, as one Ford dealer said, is a 'jacked-up Ford Fiesta' which has been dressed in new clothes and fitted out with a new, but plasticky, interior.
'Well, that's all very well', I hear you mutter, 'but this car only costs a whisker over £10,000 so what do you expect?'
And, to a certain extent, you've got a point. Perhaps I'm being too demanding in what I expect from cars these days, especially those priced in this ball park. But putting that aside, the driving experience of the Fusion will leave you in no doubt how flawed this car is.
The ride height has been raised to give the Fusion a more muscular, rugged look to fit in with its Multi-Activity Vehicle tag. On road, the driving experience is blighted by the aforementioned ride height – cornering is pretty poor and the ride is nothing to write home about.
The only bright spark in the Fusion picture is the 1.4-litre TDCi engine – a little gem that is clean and green without being hideously slow.
What makes this car even more puzzling is the fact that it is based on the new Ford Fiesta, a great little car with bags of interior space and good ride and handling characteristics.
The only benefit the Fusion has over the Fiesta is greater headroom for driver and passengers but that is not enough these days to convince people looking for a lifestyle vehicle. Also, the boot is very small, leaving you nowhere to pack all those lifestyle items you may want to take with you.
Anyone looking to buy this sort of car is almost spoilt for choice these days because the supermini sector style of car has grown so much – the Fiesta, Volkswagen Polo and Honda Jazz offer bucketloads of space, remarkable refinement and for similar money to the Fusion. So why has Ford decided to research the Multi Activity Vehicle market, design, build and market this car, probably at a cost of several million pounds, when it already has a perfectly good solution in the Fiesta?
If I knew the answer to this question I wouldn't be working as an impoverished journalist on Fleet News – instead I'd be a high-flying financial expert. But it does seem to me that the Fusion is a great waste of money on Ford's part. The Fiesta is only slightly smaller but is a far better car in all areas.
Peugeot's 206SW is a cleverer solution and so is the forthcoming Vauxhall Meriva. Both companies seem to have thought about this market far more than Ford, which appears to have reacted to the sector with a pretty poor attempt. What the Fusion does prove is that car manufacturers seem to be obsessed with market niches and the Fusion is a market niche too far.
Ford Fusion1 1.4 TDCi
Delivered price, standard car (P11D value): £10,520
CO2 emissions (g/km): 116
BIK % of P11D in 2002: 18%
Graduated VED rate: £80
Insurance group: N/A
Combined mpg: 64.2
CAP Monitor residual value: £3,925/37%
Depreciation (10.20 pence per mile x 60,000): £6,120
Maintenance (2.08 pence per mile x 60,000): £1,248
Fuel (6.03 pence per mile x 60,000): £3,618
Wholelife cost (18.31 pence per mile x 60,000): £10,986
Typical contract hire rate: £261 per month
For
Against
Three rivals to consider
P11D Price
THE Fusion's front-end price is £170 less than its closest rival here in terms of packaging and space, Peugeot's 206 SW. At £10,520, the Fusion costs a fraction less to buy than a top-spec Fiesta 1.4 TDCi Zetec, although in basic Fusion1 trim it lacks the standard equipment that its Fiesta cousin offers.
Of the rivals here, the Hyundai is the most expensive at £11,640, although it is slightly larger and fits into the mini-MPV sector rather than the Fusion's Multi Activity sector.
Ford £10,520
Peugeot £10,690
Toyota £11,260
Hyundai £11,640
SMR Costs
CONSIDERING they both share the same engine and mechanicals, it seems strange that the Fusion costs more than the Peugeot on servicing, maintenance and repair costs (SMR). At 1.87 pence per mile over three years and 60,000 miles, the Peugeot and Toyota tie on being the cheapest, with the Ford in third place on 2.08ppm. The Hyundai comes in fourth on 2.12ppm, although all three offer very low SMR costs over a typical fleet operating cycle.
Peugeot 1.87ppm
Toyota 1.87ppm
Ford 2.08ppm
Hyundai 2.12ppm
Fuel costs
THE Fusion and 206 SW share the same 1.4-litre common rail diesel engine, badged TDCi and HDi respectively. Both record 64.2mpg on the combined cycle, helping them to top this table with a fuel cost of 6.03ppm. Toyota's D4-D engine in the Yaris Verso also manages to equal this figure, leaving the Hyundai's 1.5-litre TD unit trailing well behind in fourth place on 8.22ppm, a result of it managing to record only 47.1mpg on the combined cycle.
Ford 6.03ppm
Peugeot 6.03ppm
Toyota 6.03ppm
Hyundai 8.22ppm
Depreciation costs
A COMBINATION of the lowest front-end price and a competitive residual value forecast leave the Fusion in first place in depreciation terms. CAP predicts it will retain 37% of its cost new after three-years/60,000-miles, resulting in depreciation costs of 10.20ppm. The Peugeot is slightly more expensive to buy but it has a slightly higher RV forecast (38%), leaving it in second place on 10.43ppm. The Toyota is predicted to retain 34% of its cost new and the Hyundai 33%.
Wholelife costs
ONCE again the Fusion takes a win, this time recording the lowest running costs over three years and 60,000 miles. At 18.31ppm, the Fusion is 0.02ppm cheaper to run than the Peugeot. Both are well clear of the Toyota (19.57ppm) and Hyundai (22.28ppm). The Fusion's strengths come from having the lowest fuel and depreciation costs as well as competitive servicing, maintenance and repair costs. However, there is little to choose between the Fusion and the 206 SW.
Ford 18.31ppm
Peugeot 18.33ppm
Toyota 19.57ppm
Hyundai 22.28ppm
Emissions and BIK tax rates
NO matter how low the carbon dioxide emissions are in this sector, all four cars will fall into the 18% benefit-in-kind tax band by virtue of them being diesel-fuelled. So even though the Ford only emits CO2 at a rate of 116g/km, it will fall into the same tax band as the Hyundai, which emits 158g/km. The only tax differences arise in VED terms, with the Ford and Peugeot costing £80 a year while the Toyota costs £110 and the Hyundai £130.
Ford 116g/km/18%
Peugeot 117g/km/18%
Toyota 133g/km/18%
Hyundai 158g/km/18%
Verdict
THE Ford Fusion takes a narrow victory in running costs terms over the Peugeot 206 SW, but we can't recommend it. The driving experience, debatable looks and cheap interior feel count against it. For 0.02ppm more to run over three years and 60,000 miles, the Peugeot is a clear winner – it looks better, feels better and drives better than the Fusion.
