For Ford, Small Cars Are Big Business
In order to reach out to a greater number of consumers, Ford (NYSE:F) is placing bets on smaller, more inexpensive cars in order to get the Blue Oval into more hands around the globe. During a roundtable discussion at this week’s North American International Auto Show, CEO Alan Mulally noted that smaller cars like the Fiesta and Ka will account for an increasing share of the global auto market, including the United States.
The pattern of growth for smaller vehicles stems from the increasing costs of cars overall, as more and more technology finds its way in and causes the price to inflate. Despite padding automaker’s profit margins — Ford has seen double-digit growth thanks to increasing prices — it is also spurring people to turn to more affordable options, The Detroit News reports.
In turn, this makes the small car market a more crucial one, and Ford hopes to be waiting with arms wide open, Mulally implied. “We have to find a way,” he said. “All of our data say the economics are very, very important.”