Date posted: 07-24-2008


DEARBORN, Mich. — In his most dramatic announcement since being recruited two years ago by Ford chairman Bill Ford, the automaker's president and CEO, Alan Mulally, said the Ford Motor Co. will implement sweeping changes in its North American product lineup over the next four years, moving from a longtime emphasis on full-size pickups and SUVs to smaller, fuel-efficient vehicles, many of them designed and engineered in Europe, as a response to soaring fuel prices and consumers' sudden shift from big trucks to small cars.

In addition, Mulally confirmed the company's new plan to maintain the Mercury brand in North America, reversing a movement internally to phase out the brand by 2012. Mulally also said Ford will double its production of hybrid vehicles next year, becoming the second-largest provider of hybrids in North America after Toyota.

"We continue to take fast and decisive action, implementing our plan and responding to the rapidly changing business environment," said Mulally. "Ford is moving aggressively using our global product strengths to introduce additional smaller vehicles in North America and to provide outstanding fuel economy with every new product."

Ford said it will be selling six European vehicles in North America by 2012, all of them based on the Fiesta subcompact (B segment) and Focus compact (C segment) platforms. Ford said that by 2013, all of its B- and C-segment vehicles will share common platforms in North America, Europe and Asia. It also plans to merge the North America-based Fusion and European Mondeo mid-size C/D cars on a common platform.

Among the new products slated to arrive in North America over the next four years are the Fiesta sedan and hatchback, which will be assembled in Cuatitlan, Mexico, in early 2010; the European Focus hatchback and sedan, which will be assembled in Wayne, Michigan, in mid- to late 2010, and the Transit Connect, which will be imported from Turkey in mid-2009.

Insiders say Ford is considering whether to build and market the mid-size Mondeo sedan in North America, as well as the Fiesta-based EcoSport and Focus-based Kuga and C-Max crossover vehicles. It is also studying whether to offer a version of the new Courier compact pickup that is being engineered in Australia.

In a statement, Ford said that it planned to "to produce small vehicles from [the] global C-car platform beginning in 2011" at its Louisville plant in Kentucky, which now assembles the once-popular Explorer. It also said it will introduce "a European small vehicle that will be a 'whitespace' entry in North America in 2010."

In response to rapidly changing consumer demand, Ford said it will convert three truck/SUV plants to production of smaller, car-based vehicles, including the Louisville and Wayne plants. In addition, it plans to double production of four-cylinder engines by 2011, expand the application of six-speed automatic transmission across nearly every vehicle line and accelerate production of its new EcoBoost turbocharged gasoline direct-injection V6 and four-cylinder engines. Ford said its goal is "to be the best or among the best in fuel economy with every new product in its segment."

Ford also is rapidly renewing its domestic vehicles, beginning this fall with a redesigned F-series pickup, and said its Ford, Lincoln and Mercury lineups will be almost completely "upgraded" by the end of 2010.

Ford has recently launched the new Lincoln MKS flagship sedan, and on the near horizon is the seven-passenger Lincoln MKT crossover in 2009; a face-lifted Mustang in early 2009; the face-lifted Taurus sedan in mid-2009; the next-generation Explorer in 2010, and a new Mercury small car in 2010. It also said production of the current Ranger compact pickup will continue through 2011.

What this means to you: Mulally is demonstrating — finally — that he can move aggressively and decisively to meet the sudden and devastating swing in consumer tastes in the U.S. — Paul Lienert, Correspondent