Mulally also told the interviewer that the company is still considering bringing the Ka to the U.S. market and will be watching demand for smaller cars. The challenge for Ford and other automakers is offering small cars like the Ka and Fiesta at a profitable price point. That's even more of an issue with the current economic conditions. Prior to the recent financial collapse, it was hoped that they could offer small cars with the levels of equipment offered in bigger cars and thus command a high enough price to make money. That may prove to be more difficult now as Mulally acknowledged that we could see U.S. car sales dip to as low as 11-12 million annually next year compared to a high a few years ago of 17 million. You can check out video of the AN chat with Mulally here.
[Source: Automotive News - sub. req'd]