FORD FIESTA PRODUCTION TO BEGIN IN EARLY 2010; EUROPEAN HATCHBACK ADDED FOR NORTH AMERICA

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FORD FIESTA PRODUCTION TO BEGIN IN EARLY 2010; EUROPEAN HATCHBACK ADDED FOR NORTH AMERICA

 

 

- Ford Fiesta for North American customers will be produced at Ford’s Cuautitlán Assembly Plant beginning in early 2010

 

- Sporty European hatchback model added for North America, alongside popular sedan

 

- Cuautitlán Assembly Plant transformed from large-truck to small-car production as part of Ford’s manufacturing realignment and investment in smaller, fuel efficient vehicles

 

- New diesel engine line at Chihuahua Engine Plant and a new joint venture transmission plant with Getrag in Guanajuato also planned

 

 

MEXICO CITY, May 30, 2008 – Ford Motor Company today announced the new Ford Fiesta small car for North America will be produced at the company’s transformed Cuautitlán Assembly Plant beginning in early 2010 and a sporty European hatchback model is being added to the North American lineup alongside the popular sedan.

 

Transformation of the facility near Mexico City begins this year, as the plant is converted from its current production of F-Series pickups for the Mexican market to small cars for all of North America. The Chihuahua Engine Plant, which builds I-4 engines, also will assemble diesel engines for light- and medium-duty trucks in a variety of global markets. In addition, through a joint venture with Getrag (GFT), Ford will establish a new transmission plant in Guanajuato to support various Ford products. Company officials announced the trio of investments jointly with Mexico President Felipe Calderón Hinojosa.

 

The new multi-plant development effort represents a $3 billion U.S. investment, including the support of local suppliers. It is Mexico’s largest ever automotive investment. The moves are expected to create approximately 4,500 Ford jobs. Together with all direct and indirect employment at suppliers, the moves affect 30,000 jobs in Mexico.

 

“Ford is absolutely committed to leveraging our global assets to accelerate the shift to more fuel-efficient small cars and powertrain technologies that people really want and value,” said Ford President and CEO Alan Mulally, who was in Mexico for the announcement. “Our investments in these facilities in Mexico are part of our plan to further realign our manufacturing capacity in line with the introduction of more small cars and crossovers.”

 

A small car concept called the Verve showcased the design direction for the new Fiesta when it debuted at the North American International Auto Show in Detroit in January. Both sedan and hatchback models were displayed – with high praise from customers and the news media.

 

“Customers responded very positively after seeing both the sedan and hatchback versions of the Verve small car concept,” said Mark Fields, president of The Americas, Ford Motor Company. “We know the market is headed toward more small cars and crossovers. With our product and manufacturing flexibility, we will be able to offer both models and add production capacity.”

 

The New Ford Fiesta

 

When it goes on sale in North America in 2010, the new Fiesta will be bold and sophisticated – to help it clearly stand out from other small cars on the road. Ford is building on decades of small car leadership in Europe as it develops the new Fiesta for North America to appeal to increasingly savvy customers who value technology, design and fuel efficiency.

 

Momentum in small-car sales is outpacing overall industry growth worldwide. Globally, small car sales have grown from 23 million units in 2002 to an estimated 38 million in 2012.

 

Driving the growth in the North American market is a group of young people aged 13 to 28 years – dubbed “Millennials.” Today, this group stands 1.7 billion strong worldwide and will represent 28 percent of the total U.S. population by 2010.

 

The Fiesta is the first of Ford’s new global family of small cars set to debut in Europe and Asia later this year and next year – and in North America early in 2010.

 

“We’re looking at every aspect of what’s defined Ford as a small-car leader in Europe and working to build on this expertise in driving dynamics and design across a global family of Ford cars that are as exciting to drive as they are to look at,” said Derrick Kuzak, Ford’s group vice president, Global Product Development. “The Fiesta is designed to set a new world standard for quality, design, fuel economy and comfort in the small car segment.”

 

Ford in Mexico

 

With this investment, Ford – the first automaker to establish operations in Mexico – is building on a manufacturing presence of more than 80 years and an equally long tradition of supporting local communities.

 

“This opportunity to strengthen our business and the local industry has been made possible through support from the federal and state governments,” said Louise Goeser, president and CEO, Ford of Mexico. “We look forward to working together to drive continued success in the future.”

 

Ford officials made the announcements in a joint event featuring President Calderón as well as Governors Enrique Peña Nieto, José Reyes Baeza and Juan Manuel Oliva Ramírez.

 

The total investment is expected to increase Ford of Mexico’s annual production to nearly 500,000 vehicles and 330,000 engines by 2012, with nearly 80 percent of the vehicles and most of the engines slated for the North American market.

 

Today, Cuautitlán Assembly Plant makes trucks for the Mexican market, ranging from the Ford F-150 to the F-550. To meet future demand, trucks for Mexico will be imported from the U.S., making room for a new generation of small cars that are stylish and fun to drive.

 

Ford also has stamping and assembly plants in Hermosillo, Sonora, where the Ford Fusion, Mercury Milan and Lincoln MKZ sedans are built. These mid-size cars are sold throughout North America as well as Venezuela and Brazil and have won numerous quality awards.

 

“Our workers at the Hermosillo plant have been a key part in boosting Ford’s overall quality,” Fields said. “Ford vehicles are among the best in the business in terms of initial quality, and we intend to keep raising the bar with each new product we bring to market, including Fiesta.”

[Hugh]

So if I read this correctly, the factory in Mexico used to build the last generation of F-150 so it's freed up to build Fiesta. I still can't help but feel bad for the US workers who will feel ripped off over this without an announcement of new product somewhere else. IMHO a lot of concessions were made but the first impulse will be not enough from the head shed was given up.

 

Other then that, I am happy the Fiesta is coming and more so that the HB will be here for NA. Personally, I only need a 3-dr but I'd take a 5-dr to save on insurance (3-dr is considered a sports car in some provinces). Plus, the HB cost pays for itself over time. I understand sedans sell in NA yet, I don't see the practicality of a B segment sedan. Sorry...

 

BTW, That pic of "Fiesta...Drive One." is catchy...

I think here "Fiesta...Powerd by You." could be open to ridicule.

Edited May 30, 2008 by Hugh

[focus05]

It's just really a bit sad that it will take them until early-2010 to get this thing out. This is a car that could, overnight, transform Ford's brand image, especially in difficult markets like California. Granted, the Focus would die a horrible death, but this needs to be a 2009 car, not a 2010 car.

 

As well as the Focus is selling right now, it will not survive much longer. It needs a significant *powertrain* overhaul as much as anything. Styling being subjective, I will leave that out of this discussion.

[Michael Reynolds]

It's just really a bit sad that it will take them until early-2010 to get this thing out. This is a car that could, overnight, transform Ford's brand image, especially in difficult markets like California. Granted, the Focus would die a horrible death, but this needs to be a 2009 car, not a 2010 car.

 

As well as the Focus is selling right now, it will not survive much longer. It needs a significant *powertrain* overhaul as much as anything. Styling being subjective, I will leave that out of this discussion.

 

Well as we very well know, the Focus is going to be re-aligned with the Focus sold outside of the US/Canada in a few short years. The Fiesta allows Ford to move the Focus up every so slightly, actions that Honda took not too long ago with the introduction of the new Civic and Fit. The Focus needs a better auto, and Ford has recognized that and it appears that it will get it in the near future.

 

As far as image in California. Well, honestly I think is isn't all that bad. The Escape Hybrid, Edge and Fusion all seem to resonate with people here. I can only imagine what revisions to the Escape, Escape Hybrid, Fusion and introduction of the Flex and Fiesta will do to further that image.

[JETSOLVER]

Well as we very well know, the Focus is going to be re-aligned with the Focus sold outside of the US/Canada in a few short years. The Fiesta allows Ford to move the Focus up ever so slightly, actions that Honda took not too long ago with the introduction of the new Civic and Fit. The Focus needs a better auto, and Ford has recognized that and it appears that it will get it in the near future.

 

As far as image in California. Well, honestly I think is isn't all that bad. The Escape Hybrid, Edge and Fusion all seem to resonate with people here. I can only imagine what revisions to the Escape, Escape Hybrid, Fusion and introduction of the Flex and Fiesta will do to further that image.

 

 

Wonder if the current updated C1 will make an appearance in any way. I know what I've read about Ford NA and small cars, but seems a relatively quick way to field a higher perceived quality and content(one assumes profit as well?) small car here. And we can assume that that's what Alan wants?

 

Or, is production constrained on that program?

[silvrsvt]

Wonder if the current updated C1 will make an appearance in any way. I know what I've read about Ford NA and small cars, but seems a relatively quick way to field a higher perceived quality and content(one assumes profit as well?) small car here. And we can assume that that's what Alan wants?

 

Or, is production constrained on that program?

 

Makes zero sense to bring over a C1 based car from Europe esp with the way exchange rates are at this time.

 

I'm just really disappointed that we have to wait nearly 24 months for the Fiesta to get here and it will be launching about the same time as the Focus will be in the states, if that even happens in a timely matter. The Fiesta should launch next summer and the Focus in Spring of 2010...

[LSFan00]

This is great news, all the way around. Folks jubilant about the current Focus sales need to remember it is just a stop-gap product, still. The real focus and fiesta, when launched closely together, will redefine the brand here I think, to many consumers.

[suv_guy_19]

This is great news, all the way around.

 

Except for the fact that the wait for a B car is too long.

[P71_CrownVic]

Except for the fact that the wait for a B car is too long.

 

But the Camaro has a longer wait!!!1!!!111!!!!1!!!11!OMG!!!1111!LOL!1111eleven!!111!1!

[NickF1011]

But the Camaro has a longer wait!!!1!!!111!!!!1!!!11!OMG!!!1111!LOL!1111eleven!!111!1!

 

How about some more important examples then? How about GM's replacement for the Equinox? What about Toyota's redesigned Corolla? Those are both "key segment" vehicles that took forever to see replacements (we're still waiting on the Equinox).

 

The Fiesta will be here when the Fiesta comes here. 1. Ford NA was added to the program late. 2. The factory slated to build them isn't even tooled for them yet. Both of those factors are the reason it will launch here a year later than it will in other markets. Are you in the camp that thinks Ford would have been better off importing the ridiculously subpar Ecosport instead?

[focus05]

No, I'm in the camp that thinks Ford should have spent some extra money pushing the Fiesta to market here. It's play as a profit machine is not nearly as important as its play as a brand image machine, in my opinion (think Prius or Volt, except in B-form). Now, this will certainly make 2010 an exciting calendar year as Ford brings in its B-car and new C-car. But this precipitous shift to small cars is not in its final throws before the F-150 comes out and wins back Ford's 900,000 per year full-size truck sales. Ford will have to tread water for 24 months with the Focus. The Fusion will be very good for Ford next year as will the Escape (although Ford is at max production capacity for both, so large sales increases are impossible until something changes)... but right now, the compact and fuel-efficient are kings - and Ford just doesn't have much there. Even if it moves 50,000 hybrids next year and sells 200,000 Foci in the U.S., that is but a fraction compared to the 900,000 Corollas, Prii, Yaris and Scions that Toyota will likely move next year.

 

That's the real problem. Ford is still losing the PR war. They are STILL seen as inefficient and slow to adapt - doesn't matter if head-to-head the models are competitive (which the Focus really isn't completely competitive there either!). Toyota will be very adept about shifting the perception problem from quality to fuel-efficiency, and it will take Ford 24 months to have any REAL answer to that challenge - and not some half-baked answer like the Focus, which can't move off the lots if it doesn't have SYNC.

 

I still believe that Ford is doing the right things to fix itself, but, frankly, they've run out of time. Any breathing room they thought they had before there was a structural change in the auto market is gone. The days of the F-series are over - it will still sell well, but it will look more like the 70s and 80s than the last 15 years. And Ford doesn't have the right product coming for at least 24 months (and then questionable production capacity after that) to take full-advantage of this shift to B- and C-cars and gain some credibility in this space.

 

That's just my perspective, and I know that others will disagree. I know that the current management "gets it," whatever "it" is, but the timing is just terrible and the speed and ability to react still seems slow from the bleachers (Focus should have VVT on the 2.0, for example, instead it gets a new gear ratio, which will do nothing in the SES except lose gas mileage). </rant>

[NickF1011]

that is but a fraction compared to the 900,000 Corollas, Prii, Yaris and Scions that Toyota will likely move next year.

 

You can leave Scion off that list. Despite the shift to smaller cars, Scion sales are still trending downward significantly.

[mlhm5]

"Ford said the multi-plant development project is a US$3bn investment, including the support of local suppliers, as well as Mexico's largest ever automotive investment, expected to create approximately 4,500 direct jobs. Together with indirect employment at suppliers, the moves affects 30,000 jobs in Mexico." - Just Auto

 

"Our investments in these facilities in Mexico are part of our plan to further realign our manufacturing capacity in line with the introduction of more small cars and crossovers." - Mulally

[pcsario]

I'm just really disappointed that we have to wait nearly 24 months for the Fiesta to get here and it will be launching about the same time as the Focus will be in the states, if that even happens in a timely matter. The Fiesta should launch next summer and the Focus in Spring of 2010...

 

After these news, it's obvious the next-gen Focus won't be here until CY2011 at the earliest.

 

I just don't see Ford launching both vehicles in the same year.

 

I'm worried about the next Focus being just a reskin, a la new Mazda3.

[RichardJensen]

No, I'm in the camp that thinks Ford should have spent some extra money pushing the Fiesta to market here.

But here's the $24 question:

 

 

Where would they build it?

[focus05]

They've known it's been coming for a long time - about a year now. They discussed it with the UAW during negotiations. The (old) F-150 being produced in Mexico was dead long before this year. That plant could have been in the midst of conversion last year as soon as UAW negotiations ended - that would be seven months into its conversion already.

[silvrsvt]

I'm worried about the next Focus being just a reskin, a la new Mazda3.

 

How is it going to be "just a reskin" when the next Focus is going to be based on the C1 platform not the old C170 platform...unless your talking about a reskined C1 platform...which more or less the C2 platform will be...

[igor]

How is it going to be "just a reskin" when the next Focus is going to be based on the C1 platform not the old C170 platform...unless your talking about a reskined C1 platform...which more or less the C2 platform will be...

well that is true .., that is how everyone in US will see it // but for PC it will be stinking reskin of the current EU Focus and will be stupid shit ...

 

 

and yes - the MkIII Focus is just a re-body of the current EU MkII Focus

 

Igor

[pcsario]

How is it going to be "just a reskin" when the next Focus is going to be based on the C1 platform not the old C170 platform...unless your talking about a reskined C1 platform...which more or less the C2 platform will be...

 

Where to start? Ford doesn't have a monopoly in the segment, everyone will be stepping up their game. The next Focus will need to be significantly better than the current model (both continents) to be competitive with other next-gen entries. As it is today, while decent, it's definitely not advanced enough to warrant just a reskin.

 

Also, the C1 Focus has LESS interior room than the "new" FuckUs, and --while it looks sleeker and sportier-- it also looks less substantial next to the proportions US customers associate with the Focus nameplate (it needs a larger wheelbase and a higher belltine - it just feels quite small as it is today).

 

Finally, the C1 Focus was great back in 2005, right now the C1 would be barely good enough for the US, but for 2011, a reskin just won't cut it. Right now it feels ancient next to the CURRENT Lancer in several ways - and this isn't some armchair judgement, I've driven both a lot lately. A reworked 2005 Euro Focus just won't cut it in 2011.

 

Don't believe me? Fine. Just go to your local Mitsubishi dealership, test drive a Lancer and then think about the fact the C1 Focus feels cramped and much smaller next to it. If you thought the new Corolla was bad... well, get ready for Ford's version of that come 2011. Sometimes you just need a fresh start (C2, a significant upgrade).

Edited June 3, 2008 by pcsario

[NickF1011]

The new Focus will maintain major underpinnings with the C1, but I would guess the end product will be about as similar as a 1979 Mustang is to a 1999 Mustang. In other words, not at all, despite sharing some basic form of the same platform.

 

Your negativity for the sake of being negative is ridiculous, pc.

[NickF1011]

DP.

Edited June 3, 2008 by NickF1011

[RichardJensen]

I doubt that the next US Focus will be smaller inside than the current US Focus. Ergo, C2 will have to get bigger inside.

 

Probably, Ford will push the wheels closer to the corners (as with EUCD) and maybe widen it a smidge.

 

BTW, 35k Focus sales and retail demand up 105%, with a 91% turn rate in May.

 

Yep, the new Focus sure does suck.

[RichardJensen]

As opposed to the new Lancer which, in base trim sucks for real.

[theoldwizard]

I'm in the camp that thinks Ford should have spent some extra money pushing the Fiesta to market ...

 

Ford is still losing the PR war. They are STILL seen as inefficient and slow to adapt ...

I concur.

 

It looks to me like the Fiesta slipped about 6 months since the beginning of 2007. I had expected it to make traditional 2010MY Job #1 of late summer and now it will be, at best 2010.5MY. Disappointing.

 

IMHO cars like the MKS, the new F150 and the Flex will add little to the bottom line.

 

EcoBoost is being "handled" by the marketing folks as a way of "freezing" the market and hopefully holding onto existing and some future customers by saying, "Hey, look that this cool new technology that we have coming out 'real soon now'. Don't buy anything today, because you'll be sorry you didn't wait !"

[pcsario]

It's a legitimate concern Nick, you can verify my points with a quick visit to any Mitsu dealership.

 

 

I doubt that the next US Focus will be smaller inside than the current US Focus. Ergo, C2 will have to get bigger inside.

Probably, Ford will push the wheels closer to the corners (as with EUCD) and maybe widen it a smidge.

 

That's what I used to think, UNTIL I saw the first spy shots of the Mazda3.

 

Just a bunch of trivial upgrades that barely changed the foundation (C1) - hell, even Ford isn't calling it C2 for a reason.

 

Go sit inside a Lancer, then get into a Mazda3. Nuff said. It looks and feels narrower, shorter, less spacious, etc.

 

That's why something much more drastic than a reskin is needed for the other C1 products.

 

Let me tell you something, in terms of interior room the outgoing Fiesta sedan is about as roomy as the current C1 Focus - I may not like the interior of the FuckUs, but it's a more comfortable cabin than the one in the C1 Focus.

 

BTW, 35k Focus sales and retail demand up 105%, with a 91% turn rate in May.

 

Yep, the new Focus sure does suck.

 

And Britney Spears sold millions of CD's... what's your point? Last time I checked the Corolla is still outselling it. Guess the more something sucks, the more americans will like it.

 

And yes, next to the '08 C1 Focus, it does suck major balls.

 

The program went overbudget, ended up costing Ford more than it would to bring the C1 Focus in 2005 to begin with, looks like shit, has downgraded handling, could be the segment leader by now, etc... but lets pat Ford in the back because they got lucky launching the wrong decision at the right time. People with that attitude put Ford in the mess it is today.

Edited June 3, 2008 by pcsario