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Ford (NYSE:F) will present a brilliant plan to Congress. It will build smaller cars to take advantage of the hunger for fuel-efficient vehicles.
According to The Wall Street Journal, "Ford Motor Co. plans to tell Congress it is retooling itself to build small fuel-efficient cars and break from the past strategy of focusing mainly on large pick up trucks and sport-utility vehicles."
The program is not likely to get a warn reception for a number of reasons, the most important of which is that it is too late. Consider that changing over many of Ford's plants to produce small cars will take billions of dollars. Product development and engineering of the new vehicles could take a year or two. In the meantime, Ford will continue to lose sales.
The most important consideration, which Congress should raise right at the start of Ford's testimony, is how it plans to best companies such as Toyota (NYSE:TM) which already build outstanding small cars, have a huge domestic market share, and will be making better and better vehicles while Ford tries to get its act together.
Next question.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
12-02-2008 @ 12:21PM
gary free said...
I read that the ceo's of Ford & GM will drive to Washington in hybrid vehicles built by their companies. I wonder if Ford will commit to a time line to build one for him. I was researching to buy one a couple of months ago, but was told that ford would not give a time frame of when to expect any more to be built. maybe not until 2009. One dealer told me they had one on order for themselves for about six months and still had no idea when they would get it. needless to say I went in another direction.