Automotive News - July 14, 2008 - (Page 28)

28 • JULY 14, 2008 FORD FUTURE PRODUCT Mulally pushes Ford toward fuel efficiency Amy Wilson awilson@crain.com DETROIT — When Alan Mulally arrived here to run Ford Motor Co. in late 2006, he brought a point of view honed while running Boeing’s commercial aviation business: Fuel will be increasingly expensive, and customers will pay a premium for more efficient transportation. Fast-forward nearly two years, and Mulally has stamped his point of view on Ford’s product development plans. A half dozen or more European-developed small cars and crossovers are scheduled to debut in North America early next decade as part of Mulally’s strategy to leverage global resources. But Mulally’s planning wasn’t enough to get Ford ready for $4-pergallon gasoline. As fuel prices spiked this spring, product developers began to rethink investments in big trucks, rear-wheel-drive cars and V-8 engines. Ford trimmed production plans and pushed back the on-sale date for its 2009 F-150 pickup, the crown jewel of its lineup. The automaker no longer expects to turn a profit in 2009. The downturn is forcing Ford to accelerate cost-cutting, eliminate more jobs and rework its cycle plan. But because Ford already had begun to develop more small, fuel-efficient cars for North America, the automaker’s plan isn’t in danger of a complete overhaul. “Our product development plan and our manufacturing plan were headed in the direction that the consumer is taking us now,” said Ford sales analyst George Pipas. “What’s different is the speed with which they’re taking us there. It is so stunning.” What remains unclear is the extent of the changes Ford is making to its cycle plan because of consumer reac- tion to gasoline prices. Company planners are re-evaluating the direction of a handful of vehicle and engine programs, sources say. Improving fleet fuel efficiency and converting truck production capacity to car production are two key directives in the review, the sources say. One plant that makes Explorer SUVs in Louisville, Ky., already is likely to switch over to compact cars in a few years. With or without higher gasoline prices, reviving the Lincoln brand — and making it an important profit contributor to the company’s bottom line — remains a priority. The following stories detail Ford Motor’s U.S. vehicle plans for the 2009 through 2012 model years, compiled from suppliers, analysts and company sources. Not all programs have been given final approvals and could change.c What do the terms mean? Freshen: Sheet metal untouched; may include new grille, fascia, headlights, taillights Reskin: Minor changes to sheet metal Restyle: Extensive changes to exterior and interior Re-engineer: Vehicle’s platform or chassis and components receive an extensive makeover to reduce noise, vibration and harshness and improve qualities such as ride, handling, braking and steering Redesign: New platform; new interior and exterior styling; engine and transmission could be carried over MODEL YEAR 2009 2010 Fusion restyled Taurus restyled, re-engineered Reskinned, re-engineered Mustang Possible Expedition freshening Small Transit Connect van debuts 2011 Fiesta debuts Focus redesigned Edge restyled Likely Explorer redesign Super Duty freshened 2012 Possible small minivan or crossover debuts C-Max small minivan expected Escape redesigned Flex restyled Possible Expedition redesign F-100 pickup debuts Full-sized Transit van debuts FORD Flex crossover debuts Escape re-engineered Re-engineered, restyled F-150 debuts LINCOLN MKS sedan debuts MKZ restyled MKT crossover debuts Possible Navigator freshening MKX restyled Small crossover debuts Possible Navigator redesign MERCURY Mariner re-engineered for 2008 model year Milan restyled In response to sagging truck sales, Ford has pushed back the on-sale date for its revamped 2009 F-150 pickup. Ford has big plans for small vehicles in North America Amy Wilson awilson@crain.com Small-car strategy DETROIT — As Ford Motor Co. pivots to sell more small cars, the automaker likely will go from one plant to four producing compactsized or smaller vehicles in North America. In that size range, the automaker now produces only the compact Ford Focus at its plant in Wayne, Mich. But by early in the next decade, Ford is expected to produce the Focus — augmented by other small vehicles — in two plants: the Wayne factory and a plant in Louisville, Ky., that now makes the Explorer SUV. Ford has announced plans to assemble subcompacts at a plant in Cuautitlan, Mexico. Ford now makes F-series pickups there for sale in Mexico. And at its plant in Kansas City, Mo., Ford is expected to produce a smaller replacement for the Ford Escape crossover and a companion small crossover for Lincoln. The Fiesta will be the first modern-day, globally engineered Ford Motor Co. car to be sold in North America. It will be based on the Verve concept, shown. Ford could offer as many as 7 small vehicles within the next 3½ years. 1. Fiesta 2. Multiutility vehicle 3. Focus 4. C-Max 5. Kuga (Escape replacement) 6. Lincoln crossover 7. Transit Connect That factory now makes the current Escape, which is a larger vehi- cle and is based on an old midsized car platform. In all, Ford is expected to offer a half dozen or more small vehicles in North America by 2011. All will be based on models developed and sold in Europe. Then there’s one long shot: the next-generation Ka, which Ford is developing with Fiat. The four-seat minicar is a three-door hatchback. A North American Ka is not planned, sources said, but could be considered if U.S. customers want to go that small. “We are doing everything we can to maximize the number and the timing of our true competency in the company — which, aside from trucks, is those European cars,” Jim Farley, Ford group vice president of marketing and communications, said this month. “We are really redoubling our effort and are very encouraged by the progress we’re making and the acceptance to those products in Europe and their potential here in the U.S.”c SCOTT KENNEDY The Transit Connect, a version of Ford’s European delivery van that the company displayed at the Chicago Auto Show in February, will be among a half dozen or more small vehicles Ford will sell in North America by 2011.

Table of Contents Feed for the Digital Edition of Automotive News - July 14, 2008

Small-car boom misses Chrysler Ford's large rwd car plan is iffy Suppliers: Inflation is looming Hummer H3T price: $31,495 VW may build next Passat in U.S. plant Glut of trucks pulls Prius to U.S. Ford sues U.S. over taxes Restyled Ridgeline Volvo will tighten U.S. dealer network As BMW's chief in N.A., Purves got biggest thrill out of Mini Despite pricey fuel, Jetta diesel in demand Everybody's a critic: How dealers cope with online reviews Hyundai goes big on Genesis lease The shift to automatic: A transmission transition Jaguar-Land Rover dealer: Stand-alone would bankrupt me Chevy christens compact Cruze Fiat, BMW will team up on platforms, parts Revision: Bosch still tops Auto News supplier list GM to build Volts in U.S. for Europe GM ads will push mpg for 90 days A missed opportunity 2008 sales forecast? 14,652,757 Suzuki cuts U.S. work force 8% CAFE standards: Stop whining and get to work Uncertainty is the name of the game Honda dealer rubs salt in a wound Careless driver was to blame for crash Unsafe driving wasn't Ford's fault For doomsayers, business is booming again Best ad slogans have staying power Bird Dog Club creator hunts dealer poachers Dealers How to design a Lamborghini? Passion for speed certainly helps Dressed to kill Check for children Delinquency rate on indirect loans skyrockets Group promotes payment assurance Ford has big plans for small vehicles in North America Mulally pushes Ford toward fuel efficiency Ford brand will draw on European lineup With no new vehicles planned, Mercury's future is bleak Engines promise power plus fuel economy Horbury: We'll keep our vehicle designs fresh Ford aims to move Lincoln upscale Toyota's Lentz: Don't panic over collapse; market will stabilize Personnel Chrysler's car sales sag in June — even more than trucks PG sells majority of auto glass business to private-equity firm Chrysler's Campi makes nice Suit against Ford is reinstated BMW reassesses Mini demand JCI plant cuts shift, work force CAW board endorses local president Purves: Thumbs-up for BMW innovations Current trend in Europe: Electric cars Solid reviews for Ford's new Flex Philosopher has insight for ailing U.S. auto industry The 'B' word brings media deathwatch at GM Chrysler to dealers: Don't panic

Automotive News - July 14, 2008

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