Ford’s American Focus fiasco
Newswheel staff :: 10 June 2006 :: Filed under Hatchback, Ford, Ford Focus, US
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Ford’s hones its loss-making skills
Distinctive styling, a polished all-round package and world-beating driving dynamics that forced the competition to collectively raise its game. That’s the Ford Focus, right? Well, that’s the view here in Europe. Across the pond, however, the Focus isn’t looking so clever. For starters, Ford reportedly loses over $4,000 on every Focus sold in the US. That’s quite an achievement, given that the company is still flogging the long-since-amortised first gen Focus…
According to a report from BusinessWeek Online, this financial fiasco is a result of Ford’s debilitating labour costs in the US. Fair enough, but the sniffy attitude of American car buyers towards compact hatchbacks doesn’t help. Oh yes, fuel prices may be creeping ever higher and environmental issues may finally have penetrated the mainstream American psyche, but they still aren’t willing to pay proper money for subcompact fuel sippers. At current exchange rates, UK buyers pay the equivalent of $27,965 for a poverty-spec 2.0-litre Focus. Brave would not be the word if Ford tried to flog the Focus for that sort of price, Stateside.
Making matters worse, the blundering Blue Oval plans to ride out the clock with the increasingly ancient first generation Focus until at least 2008. Point your peepers at BusinessWeek Online for the full story.
Linkage:
Businessweek Online
Posted 18 January 2007, by Radinol
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