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Over the next two years, Ford will have a whole lineup of new smaller cars coming the US market including the Fiesta and global Focus. At a Ford media event today, marketing VP Jim Farley talked to reporters about the plans for those cars. Traditionally, carmakers have had a hard time making money on small cars in the US because customers have expected prices in proportion to size. That perception is now changing as customers are moving down from trucks and SUVs to cars, particularly smaller car

Traditionally U.S. car buyers have had an aversion to paying more than minimal prices for small cars, essentially preferring to "pay by the pound." That has posed a problem for automakers trying to meet fleet average fuel economy standards. If they can't sell enough smaller cars to pull up their fleet average, they have to spend a lot more money to raise the efficiency of bigger vehicles to compensate. The only way they have been able to sell small cars to Americans has been at rock-bottom price