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Gas Prices are Killing Large Cars and Trucks

post #1 of 4
Thread Starter 

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.


[Head over to Gas 2.0 to read the rest]

post #2 of 4

That's cool.  I'm still disappointed in Ford though.  They've essentially said they're going to wait and see how plug-in hybrids do in the marketplace before developing the technology themselves.  In other words, they're going to be way behind the curve on this technology, just like American companies have been on standard hybrids.  Big mistake.

post #3 of 4

"You can tell the pioneers by the arrows on their backs".


That's what Ford is thinking. Since they have already missed the market, they will wait to see what mistakes their competitors make and avoid them. It's a perfectly valid business strategy for a company of that size and inertia.


Don't forget that historically, most pioneers have failed in business (the odds are stacked against them by a wide margin). First mover advantage does matter in markets where the technology is mature and the performance of the product is adequate. But this isn't the case.




post #4 of 4

Except the Japanese companies have been destroying the American companies because they developed fuel efficient cars and most importantly, hybrids.  GM finally got smart and started to develop the Volt.  But the American companies are floundering because they failed to adapt (again we get back to that lack of foresight), and what does Ford do?  Continues to fail to adapt.  It makes no sense whatsoever.  Every single other major auto company is developing either plug-in hybrids, fully electric vehicles, or both.  They all see the writing on the wall, why can't Ford?  This is the company that made cars widespread in the first place.  They've gone from pioneer to pansy.  By the time they've seen that plug-ins and EVs are widly popular, they'll be way behind on the technology just like they are on hybrids now.  Stupid move.

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