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Blurred Focus How Ford mishandled its serviceable little car ($4-5 Thousand loss each car)
Business Week ^ | 06/19/2006

Posted on 06/09/2006 12:05:53 PM PDT by Responsibility2nd

In May, an otherwise dismal month for Detroit, Ford Motor Co. (F ) sold more than 20,000 Focus subcompacts, the fuel sipper's best showing in nine months. That's great news, right? Not really. Ford lost an estimated $4,000 to $5,000 on each Focus it sold.

What irony. Just when the subcompact market is heating up, Ford can't make money on a car acclaimed for its taut handling and decent 26/32-mpg fuel economy. The auto maker's Focus problem (pun intended) is an object lesson in how Ford continues to be hamstrung by high labor costs and tired product design. By choosing not to remake the Focus for the U.S. when it had the chance, Ford misread the road ahead. Now the auto maker is working overtime to bolster the Focus, albeit not until 2008, with a face-lift plus three new small cars.

When it hit the U.S. in 2000, the Focus was widely applauded. Car & Driver magazine named Ford's zippy subcompact to its influential "Ten Best" list four years running. But by 2003 the Focus had suffered more than 12 recalls. And when Ford redesigned it in 2004, the new Focus appeared only in Europe, where Dearborn felt it could fetch a decent price. Meanwhile, the U.S. version received just cosmetic upgrades.

(Excerpt) Read more at businessweek.com ...


TOPICS: Business/Economy
KEYWORDS: automotive; focus; ford
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To: capt. norm

>>>Yeah that 86 Chevy Truck paint failure
I had it happen on a Celebrity station wagon.>>>

Ours was a Chevy Cavalier, but 1989.


61 posted on 06/09/2006 1:30:29 PM PDT by sandbar
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To: Babu
Here's my XA


62 posted on 06/09/2006 1:39:31 PM PDT by Poser (Willing to fight for oil)
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To: Responsibility2nd
Why do you say that? I'm not sure how many, but Europe had the Focus years before America did.

I was referring to the credibility of the writer, not Ford.

63 posted on 06/09/2006 1:40:52 PM PDT by Niteranger68 (Ninguna tarjeta verde. Ningún Inglés. Ningún servicio.)
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To: Responsibility2nd

"Looking for a Big 3 Bashing Thread? Here it is."

It's not like they haven't earned it.

Come on. Toyota and Wal-Mart get bashed around here more than the Big three.


64 posted on 06/09/2006 1:43:23 PM PDT by The South Texan (The Democrat Party and the leftist (ABCCBSNBCCNN NYLATIMES)media are a criminal enterprise!)
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To: 2banana
"Ford insiders say the new trio will be built in Mexico" what they can't find enough Mexicans in this county. The Focus is not a vary good fuel economy car. The Escort of the past has it beat by about 5mpg city and highway. There is a better Focus that is diesel that does a lot better. I don't know why they didn't bring it to America. It needs low sulfur diesel but I sure It wouldn't have taken much to adjust it.
65 posted on 06/09/2006 1:48:12 PM PDT by Racer1
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To: Poser

"My XA gets better mileage... Na na na na na na!"

Well, my 2003 Dodge Ram 1500 gets 18 mpg on the highway with a full load of Horse hay. Why do so many of you freepers drive those little lib cars?


66 posted on 06/09/2006 1:53:42 PM PDT by antisocial (Texas SCV - Deo Vindice)
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To: capt. norm

You're right these Big Three US auto manuafacturers have it coming. Sorry, but i wouldn't buy a BIG THREE american car ever again...They design and make junk and it's not the worker's fault.

Caterpillar...dealt straight on with labor costs and quality and now they're profitable beyond their wildest dreams.

This shows once again that problems at these companies HAVE NOTHING TO DO WITH LABOR...these are management controlled problems. The problem is with management.


67 posted on 06/09/2006 1:55:44 PM PDT by nikos1121
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To: 2banana
Fusion, Milan and Zephyr had very bad scores on side-impact crash tests.

The one "Big Three" small car that's selling well is Dodge Caliber. Dealers have less than a two-week supply and one has 25 names on a waiting list.
68 posted on 06/09/2006 1:58:25 PM PDT by BW2221
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To: FreedomPoster
It's pretty ridiculous, comparing a Boxster with a Focus and expecting them to be comparable on fuel economy.

Why is that? The Porsche Cayman get 23 mpg city/32 mpg highway as compared to the Focus at 26 city/32 highway. You were saying ...

69 posted on 06/09/2006 2:01:15 PM PDT by FreedomCalls (It's the "Statue of Liberty," not the "Statue of Security.")
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To: flintsilver7
>>I had the car for two years before I learned how to open the hood. Had to look it up in the manual. I was not going to attempt any major repairs like replacing the rubber in the windshield wiper.

> LOL! Trust me, if your windshield wipers lasted five years then you had an amazing set of windshield wipers.

This is the kind of person who brings in a car five years later with engine problems because the oil has never been changed from the time it came off the dealer lot.

70 posted on 06/09/2006 2:04:47 PM PDT by FreedomCalls (It's the "Statue of Liberty," not the "Statue of Security.")
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To: Range Rover

I see an awful lot of drivers of them that appear that way; many with two men in the car headed up I-575 on the weekends to north Georgia. However, I also see many cute women driving them too.


71 posted on 06/09/2006 2:06:10 PM PDT by Gaffer
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To: FreedomPoster

The other thing the article points to, that Ford and GM have been doing for my entire adult life, is seldom really upgrading their least expensive models, for little cost, other than cosemtically.

Toyota has had an opposite philosophy for years. When the return on investment of a feature in a "high-end" model has been achieved, Toyota starts moving the results, the technological results, of that investment (already paid off, and already profited on) down to lower-end models.

That process has made the Toyota Corolla nearly the best "economy" car for its money; and it is full of engine, drive-train, electronics, suspension and "creature" features that started, in the Cressida, the Avalon and the Camry.

I have felt for years that Toyota was a company that prodcued cars and wanted to produce cars, while GM in particular was more simply a marketer of cars that it produced. To me the difference between the focus of GM and Toyota has been like GM has the same short-term sensationalist view of things as the LameStreamMedia and Toyota is trying to do a better job at building cars, counting on their good work as what will sell their cars, regardless of immediate popular trends.


72 posted on 06/09/2006 2:13:47 PM PDT by Wuli
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To: FreedomCalls

My wife's Lexus gets that and it's at least 1/2 of what I consider a car, the Focus is a Tonka Toy.
Your wife's Lexus sells for five times what the Focus does.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

I owned a 92 Crown Victoria that got 26 to 28 highway and better than 20 in city driving and it was supremely comvortable. I have a 96 Crown police interceptor that is much faster on the takeoff than the 92 Crown due to a lower rear end ratio but it still does around 20 in town and 23 or 24 on the highway. We had cars thirty years ago that got better mileage than quoted for the Focus. In fact my older brother had a 1952 Mercury that would do 22 on the highway.


73 posted on 06/09/2006 2:22:35 PM PDT by RipSawyer (Does anybody still believe this is a free country?)
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To: RipSawyer
We had cars thirty years ago that got better mileage than quoted for the Focus.

As I said, if you want better mileage for the same price you need to sacrifice emissions, weight, power, or build quality. Cars of 30 years ago have much higher levels of emissions. I remember when you could increase your mileage and horsepower both simply by pulling off all your vacuum hoses, but you would then fail the emissions test. I think you just proved my point about that by claiming that 30 years ago cars got better mileage than today's restricted-emissions cars.

74 posted on 06/09/2006 2:32:59 PM PDT by FreedomCalls (It's the "Statue of Liberty," not the "Statue of Security.")
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To: Wuli

Concur, and I just wish they made cars that were a little more geared for the driving enthusiast. I really need to look into what TRD add-ons they have for, say, the IS350.


75 posted on 06/09/2006 2:35:13 PM PDT by FreedomPoster (Guns themselves are fairly robust; their chief enemies are rust and politicians) (NRA)
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To: antisocial
"Why do so many of you freepers drive those little lib cars?"

We are cheap bastards. I spend my extra money on antique Harleys.


76 posted on 06/09/2006 2:37:00 PM PDT by Poser (Willing to fight for oil)
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To: FreedomCalls

You are no doubt right about the emissions, what amazes me is that so many seem to deny the existence of the better mileage in the past. Ford once marketed an F-150 full-size pickup that was EPA rated at 29 miles per gallon highway, I spoke with more than one owner who confirmed figures as high as 27 miles per gallon and yet I cannot find anyone on a Ford lot now who seems willing to admit that such a vehicle ever existed.


77 posted on 06/09/2006 2:38:38 PM PDT by RipSawyer (Does anybody still believe this is a free country?)
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To: dalereed
iThe new Chrysler 300 gets that good of mileage and it's got 450HP!/ip
That thing got a Hemi?
78 posted on 06/09/2006 2:51:17 PM PDT by Sensei Ern (http://www.myspace.com/reconcomedy/ "I'M YOUR WORST NIGHTMARE...AN AMERICAN...and I am voting!")
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To: Sensei Ern
Not only a hemi but it has solenoid operated valves computer controlled, no cam, lifters, push rods etc.

When I had dropped a couple of valves in my airplane 20 years ago I was talking with people about it as the way to fly. Someone has finally done it.
79 posted on 06/09/2006 3:53:54 PM PDT by dalereed
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To: PeteB570
Yeah that 86 Chevy Truck paint failure by 1991 kinda POed me when they said "Too Bad, Oh So Sad." and "Not Our Problem."

I had a 1989 Jeep with metallic blue paint. By 1994 the paint had flaked so much that the hood was practically bare metal. And the message from Chrysler was the same, Tough S**t for you.

I've never bought a Chrysler product since then, and I never will. If a rental car company tries to give me one, I ask for another and tell them why.

-ccm

80 posted on 06/09/2006 4:10:25 PM PDT by ccmay (Too much Law; not enough Order)
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