Ford the Latest to Shift to Smaller Cars
June 23, 2008
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Ford has announced that they will cut back production of their large SUVs and shift to smaller, more fuel efficient cars. This is the latest such announcement by a big auto manufacturer, which has already seen other giants such as GM make a similar move, in the hopes that cutting their carbon footprint and helping consumers fight global warming will revive lagging sales.
“We view the move to smaller, more fuel-efficient vehicles as permanent, and we are responding to customer demand,” said Alan Mullaly, the Chief Exec. of Ford.
The company will delay the release of a new pick-up and are cutting production on their existing SUVs by 90,000 units. At the same time, the company is working to increase capacity on smaller cars, including the Ford Focus, and the Ford Escape. Both of these models get much better mileage which will help consumers reduce their carbon footprint.
Just last month, General Motors, the biggest auto maker in the world, announced it was closing four plants in North America and shifting production to their smaller vehicles.
The high oil prices of late are seen as a long-term trend and consumers are opting for smaller cars that are not as expensive at the pump. While these decisions are based on their individual economics, not the need to fight global warming, it will inevitably have a positive effect on the environment as drivers will have a smaller carbon footprint.
Ford’s F-150 pick-up truck has been the best selling car in America for over two decades, but is expected to be unseated by the Honda Civic this year.
The average sale time for a car on the lot in America is 57 days – for the Prius Hybrid it is only 4 days. This is a clear example of the shift to cars with a smaller carbon footprint and better fuel efficiency.
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