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In the efficiency era ... Ford plans a new luxury crossover

Posted Aug 15th 2008 4:52PM by Joseph Lazzaro
Filed under: Ford Motor (F), General Motors (GM)

Ford, the U.S. auto giant facing perhaps its toughest combination of sector competition and economic headwinds in the company's history, is expected to announce it will build a new, seven-passenger luxury crossover, The Wall Street Journal reported Friday (subscription required).

The new three-row Lincoln MKT crossover is expected to go into production next year, and mirror a 'bustle back concept' displayed at the Detroit Auto Show this year, The Journal reported. Its primary competitors would be the Acura MDX, Audi Q7, and Mercedes R class.

Ford Motor Company (NYSE: F) shares were virtually unchanged on the news, up 2 cents to $5.12 in Friday afternoon trading.

Crossovers are larger cars designed to look and function like SUVs, only with better gas mileage.

Analyst takes wait-and-see approach on crossover

Stock Analyst C. Leonard Bauer said he's reserving judgment on the Lincoln MKT, pending performance, fuel economy, and safety test reviews.
"From what Ford announced at the Detroit Auto Show, it's supposed to have a V-6 engine, not a V-8, and new technology to substantially increase fuel economy. We'll see," Bauer said. "The design has a sort of 'Batman movie' look to it, and it could find an eager clientele, if performance and road characteristics are strong." Bauer added that he does not have a rating on nor own shares in any auto manufacturer.

Nevertheless, Bauer said $4 per gasoline prices could weigh on sales, if fuel economy is not markedly higher than existing SUVs. That high gas price is also the major reason Ford - - and General Motors (NYSE: GM) and Chrysler - - have to dedicate the bulk of their scarce research assets to fuel efficiency, he added.

Tags: auto sector, crossover vehicles, crossovers, inthenews, Lincoln MKT, miles per gallon, mpg, new cars, oil prices, oil shock, SUVs

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