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In Need of Big Ideas, Ford Thinks Small

Company may move some production of small cars to US

By Katherine Thompson,  Newser Staff

Posted Jul 19, 2008 4:28 PM CDT
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(Newser) – Ford Motor Company will be repurposing some of its US plants to manufacture smaller, more fuel-efficient cars, the Wall Street Journal reports. As rising gas prices drive falling sales of behemoths like the F-150, insiders say the company will move toward making more of the passenger cars, like the Mondeo, that are mainly sold in Europe.

While domestic sales dropped 14% in the first half of the year, European sales went up by 2%. Ford has posted billions in losses in the past 2 years, and expects to remain in the red through 2008. Plans to break even in 2009 no longer look so rosy, either, and the company has pushed back the release of the new F-150.

Unsold 2008 F-150 pickup trucks sit at a Ford dealership in the southeast Denver suburb of Centennial, Colo. Ford Motor reported steep drops in sales of pickup trucks and sport utility vehicles.
Unsold 2008 F-150 pickup trucks sit at a Ford dealership in the southeast Denver suburb of Centennial, Colo. Ford Motor reported steep drops in sales of pickup trucks and sport utility vehicles.   (AP Photo/David Zalubowski)
The model logo shines off the grille of an unsold 2007 Mustang in a long row of unsold Mustangs outside a Ford dealership. The company plans to produce more small cars in the US.
The model logo shines off the grille of an unsold 2007 Mustang in a long row of unsold Mustangs outside a Ford dealership. The company plans to produce more small cars in the US.   (AP Photo/David Zalubowski)
Susan Cischke, Ford Motor Co.'s newly appointed environmental chief, sees smaller, more fuel-efficient diesel and gasoline engines in the next five years.
Susan Cischke, Ford Motor Co.'s newly appointed environmental chief, sees smaller, more fuel-efficient diesel and gasoline engines in the next five years.   (AP Photo/Carlos Osorio)
US automaker Ford displays Mondeo during the Shanghai Auto 2007 in Shanghai. The company has been selling the smaller passenger car in Europe, but may now bring it to the US.
US automaker Ford displays "Mondeo" during the Shanghai Auto 2007 in Shanghai. The company has been selling the smaller passenger car in Europe, but may now bring it to the US.   (AP Photo/Ng Han Guan)
Assemblymen sand the body on the 2008 Ford Focus at the Wayne Stamping Assembly in Wayne, Mich. Ford may bring its European version of the Focus to the US.
Assemblymen sand the body on the 2008 Ford Focus at the Wayne Stamping Assembly in Wayne, Mich. Ford may bring its European version of the Focus to the US.   (AP Photo/Carlos Osorio, file)
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COMMENTS
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It's not just the fault of gas prices
Forbes

Small cars aren't cheaper for consumer
newsnet5

Smaller cars, bigger luxuries
New York Times

 
fuel efficiency • Ford • gas prices • Big Three • small cars

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