Ford may announce plans to retool truck plants for small cars this week

While General Motors recently announced plans to shutter four factories that had been building pickup trucks and SUVs, Ford may announce as soon as this week plans to shift some of its own truck plants to building smaller cars. Ford already decided that a Mexican plant that currently builds F-series pickups will be the source of the new Fiesta mini-car in early 2010. The second quarter results call on Thursday may bring more information on other truck plants that will build the next generation Focus and Mondeo. Now that the US dollar is so weak against other currencies, it no longer makes much sense to import small cars from other countries. The combination of more refined cars and the increase in fuel prices has also driven up demand for smaller cars to the point where they can actually be sold profitably in this country.

[Source: Wall Street Journal]