It’s been a tough week for North American car manufacturer Ford, as it announced its second quarter sales results for 2008. The result was a net loss of nearly $8.7billion, the largest in the company’s history prompting a rethink in strategy.
It is a dramatic slump for Ford which suffered $1.4billion in losses from its continuing operations during the second quarter. By comparison, in the previous year’s quarter, the company earned a profit of $258million in the North American market. Nevertheless, Ford Europe’s profits have climbed while there has also been growth in Asia and South America. So it’s clear that the focus for Ford must be on rejuvenating its appeal in its homeland.
To do this, Ford plans to bring some of its stylish European models stateside with the focus on reducing each vehicle’s miles per gallon ratio.
CEO Alan Mulally outlined the following goals for the company:
- To double four-cylinder engine production by 2011 in North America.
- Double world hybrid offerings by 2009.
- Introduce the European Transit Connect small van to North America by mid 2009.
- Introduce an all-new Lincoln seven-passenger crossover slated for 2009.
- Develop a new Mercury small car for 2010.
- Bring the European Fiesta sedan and five-door hatchback to America by 2010.
- The next generation Ford Explorer to be released in 2010 with 25 per cent better fuel economy than the outgoing model.
- New, unnamed European small car to join the North American line-up by 2010.
Ford does state that there are no plans to give up its long-time truck leadership. However, it will create a new foundation of smaller, more fuel-efficient cars to take the brand forward.
