Ford Adjusts to Gas Prices, Cuts Back on Production of SUVs
Ford Responds to Changing Market
"We view the move to smaller, more fuel-efficient vehicles as permanent, and we are responding to customer demand." When the CEO of Ford makes a statement like that, you know that high gas prices have really had an effect on the economy. Not only is Ford aware of the need to respond to changing customer demand, it is also acting on that by delaying the launch of its new F-150 pick up truck, producing "90,000 fewer pick ups and SUVs in the second half of the year than it originally planned," and preparing to make more compact, efficient cars like the Ford Focus and Escape.
F-150 Pickup Truck Loses Popularity
The F-150 has been America's top-selling vehicle for over two decades, but industry insiders believe that the Civic will take over that title this year. To give a sense of just how strong the trend toward efficient cars has gone, the average car in the U.S. sells in 57 days, while "the Toyota Prius hybrid sells in just four." Honda, Nissan and Toyota are well-positioned to take advantage of the current market; Ford continues losing money and it remains to be seen how well it responds.
More On Gas Prices
::More Motorists Running Out of Gas
::Even Cheney Thinks Gas Tax Holiday is a Bad Idea
::Graphic of the Day: Americans Driving Less
More on Compact Cars
::Compact and Hybrid Cars Becoming More Popular in the USA
::Smart Car: How Smart is It?
::Sales of Hybrid S.U.V.s Lower Than Expected
::Toyota Prius Hybrid: 1 Million Served