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April 20, 2005

Ford, GM, and SUVs « Car Issues »

Like GM, sales of Ford's most profitable and fuel-thirsty sports utility vehicles have slumped amid record gas prices.
'The shift out of traditional SUVs into cars and crossovers, which we anticipated several years ago, was happening at a rate faster than we had expected,' said Chairman and CEO Bill Ford.
'This hurt us on two counts. First our share in SUVs is higher than in the smaller growing segments, which lowered our overall share. The second, our margins on SUVs are generally higher than our cars and crossovers, which lowered our profits,' he added.
But Ford's situation is nowhere near as dire as its Big Three rival, according to Smith Barney's Jon Rogers.
'Despite a disappointing Q2 outlook, Ford's performance clearly demonstrates its superior positioningrelative to General Motors,' he told clients in a note.

Emphasis mine.
It merely underscores that GM ignored the car market for too long, and that GM is still playing catch-up overall. There's hope, but I hope they figure it out, fast. We'll see how the next year goes, eh?

Posted by Nathan at 08:25 PM | Comments (0)
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