FoMoCo surprised all of us with a $100 million profit in the first quarter of 2008. However, now the automakers most profitable segments, pickups and SUVs, are seeing a major decline. Ford reported that SUV sales fell 36 percent in April while pickups dropped 19.
Ford recently announced major production cuts and said that it will shift away from large trucks and SUVs and concentrate more on smaller cars and crossovers. It seems FoMoCo is realizing that consumers are losing the appetite for gas-guzzling vehicles.
CEO Mulally recently said that he believes U.S. truck sales are in a rapid and permanent decline and that mid-sized vehicles will ultimately dominate the U.S. market.
“It appears to us that fuel prices are not going to come down,” Mulally told Automotive News last Thursday. “You just cannot make cars that people don’t want.”
Mulally said that Ford’s lineup would become more like Toyotas and Hondas.
“We just don’t have enough of those small or medium-sized vehicles yet, and that’s what we need to concentrate on,” said Mulally.
Source: Automotive News (Subscription Required)