New Business Model - Ford trying to convince the US that small is better

From Businessweek:

Ford Motor Co. says it improved the redesigned Focus compact with safety and fuel-saving features like those found on Porsche SE sports coupes. Now the automaker must persuade consumers to pay more for a small car.

The Focus, which is being introduced today at the Detroit auto show, is a pillar of Chief Executive Officer Alan Mulally’s bet that U.S. buyers will embrace small cars equipped with the amenities more typically found in larger models such as sport- utility vehicles.

Expanding the small-car lineup means Ford will have to charge higher prices to earn a return from the kinds of autos that have historically been unprofitable, said John Wolkonowicz, an analyst at IHS Global Insight in Lexington, Massachusetts.

“Ford will have to condition the American car buyer into thinking smaller is better, or this business model will not work,” Wolkonowicz said. “It’s a huge challenge.”

The Focus will lose its status as Ford’s smallest offering when the Fiesta subcompact goes on sale in the U.S. this year.

Original Article:
Ford?s Small-Car Push Means Mulally Must Get Buyers to Pay More - BusinessWeek


Now what I want to know, is how they will shoehorn a 5 litre engine into a Feista I just can't see the average Mustang driver downgrading to a 1 litre Fiesta

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This strategy will also depend on what Obama has got to say as he had proposed a green automotive bill dictating Co2 emissions and most of the yank tanks will be banned straight off.

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