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Small Car Challenges Ahead


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I thought this 10/26/09 blog from David Leggett addresses some issues pertinent to Ford, especially as they prepare to release the Fiesta and Focus. Here are the first few paragraphs:

 

I was in Detroit last week and I had a number of

conversations in which the subject of small cars cropped up.

It's a subject that is getting considerable attention at the

OEMs and major suppliers in terms of anticipating future

market trends.

 

While there is a general consensus that car market

segmentation globally is shifting toward more efficient and

'smaller' cars, there is considerable uncertainty about the

pace of downsizing, how it will actually play out in

particular markets and ultimately what it means for the auto

industry.

 

The thing is, while passenger vehicle market segmentation

across the world may be undergoing a degree of convergence,

there are still some pretty big differences out there.

 

The full blog can be found here: Just-Auto.com

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The key for Ford is to have a competitive offering in all critical market segments so that no matter which way consumers shift Ford has a product for them. Just a few years ago anyone wanting a crossover or good small or midsized car had to leave the brand and those customers are much harder to get back once they leave.

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