Ford to convert truck and SUV plants to produce cars and crossovers
06/11/2008, 11:27 AM
By Drew Johnson
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.
06/11, 11:32 AM
posted by:
mayer_ray_nagin
I wonder if someone is gonna get a phat bonus at Ford for this idea.
06/11, 11:42 AM
posted by:
johnnycanuck
Ford must live on a much larger planet than the rest of us because the dawn sure seems to take a lot longer in coming.
06/11, 11:51 AM
posted by:
xyunya
Actually, dawn is not coming according to article. making small vehicles does not mean making any $$$ for Ford, so grave is still insight. They really don’t want to make small cars.
06/11, 11:56 AM
posted by:
richt62167
I will beleve it when I see it
06/11, 12:04 PM
posted by:
Need4SSpeed
kind of like killing two birds with one stone. They can shift production and use some available capacity of producing much demanded smaller cars instead of the declining demand for trucks and SUV’s, and take advantage of that capacity and the weaker U.S $ and save money on producing vehicles for the European market. Good thinking.
06/11, 12:50 PM
posted by:
Robert
I still don’t understand how people believe they can run out of cash. They have nearly $40 billion in cash, equivalents and LOCs after their VEBA costs are deducted. They are currently expecting to burn through $14-16 billion to restructure. So… they have $24 billion left to play with. What’s an extra $1-2 billion to actually get them on their feet properly for long-term growth? In fact, that would be what they thought they would burn in early 2007.
Unless we think the auto industry is going to completely implode (in which case, it won’t matter much what any company is doing), I don’t see them running out of cash – or even coming close to it.
06/11, 1:27 PM
posted by:
shaver
Amazingly the Mags and enthusiasts have been begging for the Euro models since the memory of the XR4ti faded 20 years ago. Now Ford is finally doing it out of desperation and with their backs to the wall. Pretty sorry leadership and even poorer foresight by any account
06/11, 1:49 PM
posted by:
Impulsive
Kerkorian may be the contrarian indicator here.
06/11, 3:13 PM
posted by:
brassmonkey
I still remember the ****ty Merkur XR4ti. Lots of ****ty cars from the 80s.
06/11, 11:12 PM
posted by:
NoNameDenton1
Like anyone did not see that coming.
06/12, 2:43 PM
posted by:
VWInformant
It’s good to see that Ford is starting to realize the practicality of crossovers in today’s market. That’s the reason why cars like the VW Tiguan are being voted Europe’s SUV of the Year by Auto Bild (Auto 1 Trophy in the category of Off-Roaders and SUV) .
06/13, 10:07 PM
posted by:
DialM4Speed
“Amazingly the Mags and enthusiasts have been begging for the Euro models since the memory of the XR4ti faded 20 years ago. Now Ford is finally doing it out of desperation and with their backs to the wall. Pretty sorry leadership and even poorer foresight by any account”
What’s the point of bringing the cars from Europe here? They did it with the Merkur (which were better than most of the stuff they were making at the time) and look what happened. NO SALES! How do you pronounce it?? Mer-Ker??? No dumb **** it’s Mare-Koor! They say those cars did sell because of the name and they should have called them Mercury’s BULL****! Look at all the cars with crazy names for sale these days. VW Toureag… Toerag? whatever! Yet they sell and VW is known for crappy built cars.
So **** all these people crying for Euro Fords. Even if they brought it over YOU WOULDN’T BUY IT!
07/04, 7:58 PM
posted by:
canehdian_J
well i am 22. i have the credit and the money to spend on a 30 000$ car. i already own one in fact and its a rsx type S. the reason i bought it? i couldnt buy a Focus ST. couldnt get one. so i bought the next best thing. and the volvo C30 is too ugly anyway. ill be first on the list when they bring this baby over. i want a ST. the RS is just a bit too larry for our market now. too much money for gas