Big, expensive cars and trucks equal big profits. Small, inexpensive cars equal small profits.

The mathematics in today's marketplace simply can't be argued, and the result, as buyers increasingly switch from trucks, truck-based 'utes and big family cars into smaller sedans and hatchbacks, is less earning potential for full-line automakers. Like Ford, for instance. Citing the rising trend of smaller cars and crossovers, Ford Chief Operating Officer Mark Fields warned that fourth-quarter earnings will be down compared to last year.

Smaller profits in the US market are one thing; an even bigger problem is the almost complete lack of profit margin in South America and huge multi-billion-dollar losses in Europe, where economies are in crisis and automakers are laying off workers and closing plants. In other words, we're thinking Ford's eight to ten-percent margins in the States aren't looking so bad...


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 49 Comments
      thequebecerinfrance
      • 2 Years Ago
      Small cars used to be sold with no profits as the margins where made on the large cars. Now that more small cars are are sold they have two choices, cut cost or hike the prices. Small cars are nearly as expensive as large ones to build.
      Steve
      • 2 Years Ago
      I'm always up for buying a small car if it's powered appropriately, given premium options, and actually drives well.
      roger
      • 2 Years Ago
      Go FORD!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
      davefromfwb1
      • 2 Years Ago
      All Ford's got to do is start selling their own parts and get rid of imitation parts....lower their service repair fee and start doing what car companies should really do and that's sell, work on their own cars and sell replacement parts. It's that simple.
      Matthew
      • 2 Years Ago
      I don't know who is in charge of Ford, but they are making bad descisions. Ford had the cheapest truck in the world on fuel and they dropped it. The Ford Ranger. We need that kind of truck with $3+ gas prices. Then they dropped Mercury and the Panther platform. And now they are gonna drop Econoline and replace it with the VERY UGLY Transit. I hate the European looking designs! Front wheel drive cars are junk! I will not buy anything unless it is rear wheel drive or 4x4!
        ronnycorona
        • 2 Years Ago
        @Matthew
        Ford is making money and did not ask for a government handout. I'd say they're making good decisions. As for Ranger it just didn't make much sense when it only had a 1 or 2 MPG advantage over the 6-cyl F-150. I'm pretty sure you can only get a compact pickup from Toyota these days. Mercury was costing them money and the cars were just re-badged Fords anyway.
      John D. Larsen
      • 2 Years Ago
      I'll buy a Ford product again when they bring back the Lincoln Town Car.
        jmcfann
        • 2 Years Ago
        @John D. Larsen
        I agree. There's no reason why the Town Car can't deliver over 30 mpg on the highway and in the 20's in town. I have a 2006 that delivers 19 in town and 25-26 on the road...as good as and better than most SUV's. Coming back from Las Vegas last May it delivered 25.5 overall (1900 miles). And it's quiet, smoooth, has lots of room, a trunk big enough to hold two weeks of luggage for 4 adults, good seating position and you can get in and out of it without banging your head on the roof and shoulders on the A and B pillars. Oh, and it's low maintenance too. It's no stoplight racer, but it moves out quite well for a 4300 lb car with a 4.6 liter "mouse motor" (smaller than a 1965 289ci V8 Mustang). Lighten the body with plastic or carbon fiber outer panels, put the DOHC 4.6 in it with state of the art fuel management techniques and mate it with a 6 speed transmission and you'll have an economical hot rod Lincoln.
      rusty
      • 2 Years Ago
      love my ford f-150, BUT for college im going to get me a kawasaki ninja just because i cant afford 500$ in gas for it, once im out of college ford f-450 platium here i come
      rjnod80
      • 2 Years Ago
      Well the bright minds at Ford/Lincoln/Mercury discontinued Towncars and Grand Marquis with out giving those of us a comparable option to purchase. So now If one should want to replace a Towncar, there are about a half a dozen SUV's to choose from in the 50k price bracket, but none are a Towncar. Ford basically said go look to other manufacturers large cars, thanks for your business. Now they realize that they can't make any money selling small cars. How stupid can the higher ups at Ford be? Didn't they figure out their profit margin per vehicle? Didn't they see that the market gets more competetive in smaller entry level vehicles? The market surely has been down sizing for the past 40 years, hybrid and higher efficiency V6 engines could have held this large vehicle nitch. The automobile industry is its own worst enemy.
      Aphidavis
      • 2 Years Ago
      The cost of fuel sure is taking all of the pleasure out of driving and travel.
      britishsteel
      • 2 Years Ago
      smaller cars are for those wtht a death wish. Nothing I like seeing more than a smart car under a tractor trailer and saying geez how smart was the owner and the car. they are coffins on wheels and rather expensive ones at that.
      whdlsn
      • 2 Years Ago
      Ford doesn't have to worry about me buying a small car. I have and always will, drive a V8 rear wheel drive vehicle. Ford ditched the RWD sedans and that didn't make me happy.
      Henri Alcala
      • 2 Years Ago
      ceo at ford don't stop making the ford tarus/limeted i just love mine fully loaded their are people like me that like full size cars , i am only 5feet 6 inc. , but think of the taller people thay are not going to want little cars an us short people to like a fine ride just make sure that you back your product an your cust/base will be thrilled with it thank you
    • Load More Comments