In an effort to bring its production inline with consumer demand, Ford is currently developing a plan to convert some of its North American truck plants to produce cars and crossovers. Not only will the updated plants be focusing on smaller vehicles, but Ford will likely retool them with the ability to make some of its European vehicles.
Ford’s European lineup is chock-full of small, efficient vehicles, and Ford’s North American management wants to take advantage of this fact. “The best place to look is Europe,” CEO Alan Mulally told The Detroit News. “We can tailor the production to where we sell them.”
The first European Ford vehicle to be built in the States will likely be the Ford Transit. Insiders say that Ford will build the more efficient commercial vehicle at its Avon Lake, Ohio E-series van plant.
Ford will also bring its European Focus to the U.S. in 2010 or 2011, with the global vehicle replacing the Focus and Mondeo reaching our shores in 2012. Ford’s compact Fiesta will bow in 2010.
Ford’s goal is to produce the most models on the fewest platforms, so it’s quite possible more European vehicles are in our future — including the C-Max and Kuga crossover.
In addition to European platforms, Ford will begin focusing on its upcoming F-100 platform. The new architecture will underpin a new small truck to be produced at Ford’s Wayne, Michigan plant, but The Detroit News says the Dearborn-based automaker will also use the new platform to underpin the Ford Expedition and Lincoln Navigator .
Ford will also convert its Louisville SUV plant — which makes the Ford Explorer and Mercury Mountaineer — to produce cars and car-based crossovers, indicating that a road going version of the Explorer concept shown in Detroit could be on its way.
While there is no denying that Ford needs to make these changes in order to stay competitive within the market place, there are some concerns on Wall Street that Ford could run out of money in the process of converting its plants. Each plant conversion will cost at least $250 million and the return on investment will be much smaller — Ford is struggling to make more than a three-digit profit on the Focus while a Super Duty truck yields about $20,000.
With gas prices on the rise, it is expected that Ford will make an announcement by July so it can start on the changes.
