World News Insights
1-3 Minute Gist

All Topics Article

Small Cars Test Ford Resolve

Wall Street Journal Original article ›

Keywords:

LyrArc Article Gist
To ensure a recovery in profits in 2010-2011, Ford's strategy was to sell the Focus and Fiesta small cars at a higher price point even if this meant lower sales. Profit margins for the North American region were above 10%, and Ford's president of the Americas, Mark Fields, says this will be maintained for 2012. In the first 3 quarters of 2011, Ford's profits were $6.6 billion. Analysts for Edmunds.com say Ford has shied away from offering large discounts, subsidizing leases and other incentives, and tried to maintain higher margins. The average price for the Focus of $20,589 being higher than average prices of rivals except for the Jetta from VW, according to Edmunds. The average price of the Fiesta is higher than rivals except for the Honda Fit, according to this information. Focus sales increased by 2% in 2011 over 2010, even as compact car sales went up by 8.7%, according to Autodata. Sales of the Fiesta actually fell by 30% in December 2011 compared to the prior year. The result of this strategy is that inventories of small cars are up significantly for Ford. By 2011 years end Ford had on dealer lots inventory of Focus cars at 92 days current sales, and Fiesta cars at 126 days. Normal inventory is considered less than 60 days supply. By comparison GM had a 68 day supply for the Cruze, and a 61 day supply for the Chevy Sonic. The challenge for Ford is to hold on to its pricing strategy, which means reducing production to work off the extra inventory.

Alan Mulally and the recovery at Ford Motor Company- 2009-2014

01/06/2008

Grouped Articles

Japanese Car Makers Lose Their Midsize Edge

Wall Street Journal 05/07/2013

Ford Clips Toyota's Wings in California

Wall Street Journal 07/17/2013

Ford Speeds Up Succession Plan

Wall Street Journal 04/22/2014

Ford's Mulally Talks Mark Fields, Business in China and the New F-150

Wall Street Journal 04/22/2014

The Happiest Man in Detroit

BusinessWeek 02/03/2011

Ford to Shave $3 Billion in Debt

Wall Street Journal 02/11/2011

Ford building marketing with new direction from Farley

05/01/2006

Farley gives Ford new direction in marketing as chief marketing officer.

Grouped Articles

Ford's Latest Better Idea

Wall Street Journal 03/18/2008

A Star at Toyota, a Believer at Ford

New York Times 04/20/2008

Clunkers Sales point to challenges for Detroit's Big Three

Detroit News 11/09/2009

Ford Fiesta marketing movement pays off.

Detroit News 12/04/2009

GM, Ford Gird for Small-Car Showdown as Consumers Shun SUVs

Wall Street Journal 12/08/2009

Ford Is Hoping to Give the Once-Great Explorer a Second Life

New York Times 05/27/2010

Ford Motor and the tenuous auto sales recovery in 2011-2012

01/02/2011

Grouped Articles

Unemployment Puts Brakes on Auto Recovery

Wall Street Journal 01/02/2011

The Happiest Man in Detroit

BusinessWeek 02/03/2011

Why Are General Motors Shares Stuck in Reverse?

Wall Street Journal 04/30/2011

Pendulum Swings Back Toward Detroit

Wall Street Journal 05/03/2011

Ford Motors Out of Garage

Wall Street Journal 06/08/2011

Carmakers’ Goals Stretch Credulity

New York Times 07/10/2011

Ford Motor strategy- 2010-2015

01/11/2010

Grouped Articles

Japanese Car Makers Lose Their Midsize Edge

Wall Street Journal 05/07/2013

Ford Earnings: Growth in Asia, U.S. Offset Losses in Europe

Wall Street Journal 07/25/2013

Ford Is Hoping to Give the Once-Great Explorer a Second Life

New York Times 05/27/2010

Ford's No. 2 Steps Into the Limelight

Wall Street Journal 09/29/2013

Ford Pays a High Price for Plant Closing in Belgium

New York Times 11/05/2013

Ford Plans to Boost Production in China

Wall Street Journal 04/06/2012

Ford's Focus and Fusion models - 2010-2013

12/07/2006

Grouped Articles

Japanese Car Makers Lose Their Midsize Edge

Wall Street Journal 05/07/2013

Ford Clips Toyota's Wings in California

Wall Street Journal 07/17/2013

Even in Bright Hues, Color It Beige

New York Times 11/01/2013

Ford taps social networks for global test drive of 2012 Focus

Detroit News 10/25/2010

Ford Focus is Slick Package, but Gearbox Is a Drag

New York Times 07/15/2011

Ford Outlines New Small Engine

Wall Street Journal 09/13/2011

GM Ford and Chrysler in the small car market

12/07/2006

Grouped Articles

Even in Bright Hues, Color It Beige

New York Times 11/01/2013

It's Not a Car, It's a Ford 'Ka'

Wall Street Journal 11/14/2013

Ford to Update Focus in Small-Car Push - WSJ.com

Wall Street Journal 12/07/2006

Near-Idle Factories Challenge Chrysler

Wall Street Journal 03/24/2008

Ford Hopes New Figo Will Help It Win Asian Buyers

New York Times 09/24/2009

GM, Ford Gird for Small-Car Showdown as Consumers Shun SUVs

Wall Street Journal 12/08/2009

The recovery of Ford Motor Company in 2009-2013

01/11/2010

Grouped Articles

Japanese Car Makers Lose Their Midsize Edge

Wall Street Journal 05/07/2013

Ford Clips Toyota's Wings in California

Wall Street Journal 07/17/2013

Ford Earns $1.7 Billion

Wall Street Journal 10/26/2010

Ford's Drive to Ditch 'Junk'

Wall Street Journal 10/26/2010

Ford's Profit Climbs 70%

Wall Street Journal 10/27/2010

Ford Sees Industry Sales Rising

Wall Street Journal 11/03/2010

Ford's new models after the GM-Chrysler bankruptcies.

01/06/2008

Ford's Taurus, Fiesta and other new models.

Grouped Articles

Ford's Mulally Sees a Taurus in His Future

Wall Street Journal 06/24/2009

GM, Ford Gird for Small-Car Showdown as Consumers Shun SUVs

Wall Street Journal 12/08/2009

Ford’s Bet: It’s a Small World After All

New York Times 01/10/2010

Ford's global future rides on next generation Focus. Compact Sedan platform ams at lowest cost.

Detroit News 01/11/2010

Ford Is Hoping to Give the Once-Great Explorer a Second Life

New York Times 05/27/2010

Putting the Luxe Back in Lincoln

Wall Street Journal 06/27/2010

GM (General Motors) and Ford's effort to improve profit margins in 2011-2015

01/09/2012

Grouped Articles

Mulally Tries to Raise Ford's Sticker Price

Wall Street Journal 01/28/2014

Ford Fourth-Quarter Net Profit Up 90%

Wall Street Journal 01/29/2014

Detroit's Welcome Sticker Shock

Wall Street Journal 05/04/2012

GM, Ford, Flourish Out of the Limelight

Wall Street Journal 07/29/2015

Ford Bets on Fancy Pickups

Wall Street Journal 07/29/2015

Revitalized Detroit Makes Bold Bets on New Models

Wall Street Journal 01/09/2012


Support LyrArc

We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.

Support Lyrarc from as small as $1


Copyright © 2006 - 2026 Intelilinks LLC
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us