Like GM, Ford Decides They’d Better Start Producing Smaller, More Fuel-Efficient Cars
Gas Prices are Killing Large Cars and Trucks
Ford Motor Company announced today it will be scrambling to realign its North American Manufacturing operation with the realities of consumer needs today.
With gas prices above $4 / gallon, most Americans are shying away from giant gas-guzzling vehicles in favor of smaller fuel efficient models. Starting in December, Ford said it will accelerate production of new fuel efficiency technology, double their hybrid production and lineup, and downsize vehicles across the board. By 2010, Ford says 2/3 of its spending will be on small cars and crossovers, and it will pull six small European models to the US by 2012.
“While we have no intention of giving up our longtime truck leadership, we are creating a new Ford in North America on a foundation of small, fuel-efficient cars and crossovers that will set new standards for quality, fuel economy, product features and refinement,” said Mark Fields, Ford president of The Americas.
Ford will start by converting three existing truck and SUV plants into small car production facilities.
Ford will also begin implementing their “EcoBoost” technology in 2009. EcoBoost engines debuted at this year’s Detroit Auto Show, and according to Ford offer 20% better fuel economy through advancements in turbocharged direct-injection.
The company’s realignment was widely anticipated after earlier announcements of scaling back large truck and SUV production, and after Ford posted losses of $8.7 billion for the 2nd quarter of 2008.
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Via: Ford Motor Company
Photo Credit: Nrbelex via Flickr under Creative Commons License
Leading from behind, that’s the way to do it!
Ford management have sat around for the last decade scratching their heads wondering why their low-quality, low-gas-mileage vehicles no longer fly off their lots. (”It must be the unions’ fault!”)
It’s been completely obvious to any outsider that Ford needed to do something about their quality and their gas mileage. I’m glad Ford management finally got it through their thick skulls about fixing one problem that they should have done years ago.
But, Ford management’s damage to the business has already been done. They’re going to have to pull this off perfectly to not lose the business altogether.
Hey everyone if you own Ford, GM, or Chrysler stock you better sell now-now-now. The big three are about 5 years late and will never catch-up. Compressed air technology is the future.
People should walk where they need to go.
American auto manufacturers have betrayed the American car-buyers. This is too little too late. Greed has been the driving force behind car manufacturing - big gas-guzzlers cost more. No American owes any loyalty to American automobile manufacturers. We should spend our money on any car the meets our needs. Until we have 45MPG cars available, this is a lot of hot air. Who cares what they may have in 2010 or 2012. It is a crime that the American automobile industry has been so short-sighted and greedy and interested only in short-term gains. They have hurt us all. Meanwhile the CEO’s keep raking it in while employees either lose the jobs or their benefits or both.
Please read–Americans need to know!!!!!!!!
NHTSA Hearings 8/4/08
I just returned from the NHTSA hearings held today (August 4, 2008) in Washington D.C., regarding the Draft Environmental Impact Statement (DEIS) for NEW Corporate Average Fuel Economy standards (CAFÉ) for years 2011-2015.
IMPORTANT FACTS: You will not believe what you are reading.
1) The 414 pages DEIS analysis was based on an average gasoline price of USD $2.16/gallon for 2011-2020. A calculation approved by the NHTSA administrators/managers. Would you believe it???????????
2) The new CAFÉ rules were also established, negotiated and pre-approved by the NHTSA’s management along with the influence of domestic automotive companies and their lobbyists. We have now established fuel standards for 2011-2020 that presently are already met in the rest of the Western world (see below)
As one guest speaker said today “are they on another planet?”
NHTSA “NEW Fuel Standards” (2011-2015) decision:
Automobiles are to achieve 31.2 mpg by 2011 and 35.7 mpg by 2015. Light trucks are to achieve 25 mpg by 2011, and 28.6 mpg by 2015.
The NTHSA is also setting a goal of 35 mpg on average for 2020.
America needs to know:
The European Union is currently establishing standards, with a goal of reaching 48.9 miles per gallon for new passenger vehicles as early as 2012. The current EU standard already requires more than 40 miles per gallon about 15% higher than the U.S. goal set for 12 years from now.
Japan currently has a standard of about 40 miles per gallon. Japan aims to further improve fuel efficiency by 17% by 2015, reaching 46.9 miles per gallon.
China has a current average of slightly under 35 miles per gallon. Chinese fuel standards are on target to reach the government’s goal of 35.8 miles per gallon by 2009. China will not only meet, but exceed, the goal just established by the United States for 2020 — more than a full decade earlier.
Australia is targeting 34.4 miles per gallon by 2010.
Canada is targeting 34.1 miles per gallon by 2010.
Under the current administration, purchasing an electric vehicle is becoming more of a necessity rather than an alternative.
BG Automotive Group, Ltd.
(www.BGelectricCars.com)
[...] Like GM, Ford Decides They’d Better Start Producing Smaller, More Fuel-Efficient Cars [...]
It would surely be nice to see posts from someone who has a wider view of the automotive industry than just what that person thinks everyone should use.
I’ve used everything from a 110 cc motorcycle to a surplus military 6×6 used to tow houses. They all had their place and were suited to the job to e done. My ‘86 Mustang delivered over 30 MPG on a trip from San Jose CA to Baton Rouge LA.
This can be a place to learn about new developments, but in many cases it is just a place to find out who’s knocking what. That’s a shame.
Kenneth Josephs,
Stop at a news stand and read the current Car and Driver article about the 2010 Ford Fusion hybrid and it’s Japanese competitors. They also included the Malibu hybrid, but it couldn’t really be called a competitor.
@ ChuckL,
These yahoos don’t want to open their eyes and realize Ford is actually ahead of most car manufacturers; with the exception of Toyota and Honda. Ever since Ford hired Mulhally they have been on this track. They started working on the Fusion hybrid BEFORE the Prius came out. Yes Ford is still a little slower than Toyota, but Mulhally has them on the right track. There is a reason why Ford did not need or accept any bailout money.