Ford hemorrhaging money.

26 January 2007

Ford Motor Company recently announced a 12.7 billion (yes, with a “b”) loss in 2006. A giant number by any means.

The good news is there’s no doubting that Ford products have improved, which certainly bodes well. If the historic automotive company turns this around it will have to be through convincing the public that their vehicles are reliable, and showing a new styling that we wouldn’t be ashamed of being seen in — two things which have begun.

The Edge and Fusion herald a new era for Ford. Affordable and stylish, and the Fusion sporting all-wheel-drive, make turning the company around to profitability seemingly simple. Competitors, though, never stand idly by.

2007 brings a push by Audi to sell more cars in the states, the giant Honda and Toyota still going strong, Kia bringing in 2 new designers and improving quality…so, it won’t be easy.

While things are looking up for home-grown cars, the competition is still stiff. We’ll be routing for Ford.

CK

Ford hemorrhaging money.


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The big car trend going small.

1 July 2006

The big car trend seems to be getting small, that is, the massive SUVs introduced in the 90s, and swallowed up by Americans, may be taking a back-seat to smaller, more affordable and more environmentally friendly, automobiles.

Don’t believe it? I don’t blame you. SUVs are everywhere, and it seems every other commercial totes the offroad capabilities of vehicles that will spend their lives “onroad”. So where does my statement come from? Well, $3.00 for a gallon of gas has people talking, and to understand the trends we need only look at the people who listen. That is, examine the offerings of today’s car manufacturers. More than ever, automobile companies are listening to the public’s wants, and creating vehicles to appease them. That’s just smart business.

And what are the manufacturers hearing. Well, if it’s any indication, more and more affordable, and smaller, vehicles are being introduced that get much better gas milage than the large SUVs.

Want proof? Honda will release the Fit, a 5-door version running $13,850, next year. Toyota’s now got the Yaris, various styles are available, the lowest base price being $10,950.

The Americans are on board too. Dodge has the new Caliber that starts at $13,985.

“But car makers have always had the smaller more affordable vehicles to offer” you say. True, no doubt.

But think about this, the absolutely tiny SmartCar (by DaimlerChrysler) will be introduced to the U.S. market in 2008. This vehicle is about 9 feet long, and gets almost 70 miles to the gallon (average of 40mpg overall). It will sell for under $15,000, and will be a version of its “fortwo” model.

Still not convinced? How about, Dodge can’t make their new Calibers fast enough to keep up with sales?

The truth is, smaller cars are already the new trend. Car makers have adjusted for our desire for more options in affordable, efficient, vehicles. And it’s a trend that will be beneficial to our wallets and planet.

CK


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