Ford Plans Small Concept Car

DETROIT – Ford Motor Co., which used to make most of its money on trucks and sports-utility vehicles, is making a big bet on small cars.

The embattled company next month will launch a redesigned version of its Focus compact, and then offer a glimpse of new pint-sized model to follow about two years later.
At the Frankfurt auto show in mid-September, Ford will unveil a concept car called the Verve, a sporty subcompact that's smaller than the Focus. A model based on the Verve should arrive in U.S. showrooms in 2008 or 2009.

Ford, which posted a $2.8 billion operating loss in 2006, is hoping that spiffing up its small car line up with help the company back market share down the road. Like General Motors Corp. and Chrysler LLC, Ford has steadily ceded market share over the last 20 years as customers defected to foreign makes like Toyota and Honda. All three companies have had little or no success enticing those import buyers to come back to domestic vehicles.

But small cars often attract people who are buying new cars for the first time, and whose allegiance is still up for grabs.

On top of that, sales of small cars are on the rise, helped by high gasoline prices and increasing interest in high-mileage vehicles.

Small cars represent "a tremendous opportunity for Ford," spokesman Said Deep said. "It is a segment that is going to become very important to us."
This is a new way of thinking for Detroit. Until a few years ago, Ford, GM and Chrysler make big money selling large trucks and SUVs, and lost money on most passenger cars. So they put little effort into developing small cars and left the segment to the Asian auto makers.

Now, all three are enduring painful restructurings, in a bid to, among other things, be able to profit on all types of vehicles they make. They also have recognized the strategic value in small cars that can pull in first-time new car buyers.
The Verve concept is a sleek three-door hatchback with sculpted creases. Ford will show a second concept similar to the Verve at an auto show in China in November, and a third at the Detroit auto show in January. It plans to produce the vehicles for sale in Asia, Europe and North American between by 2008 or 2009.

Earlier this year, GM showed three concepts for subcompact cars and Chrysler one of its own. Their concepts as well as the Verve would greatly enhance Detroit's presence in the subcompact class. Right now only GM competes in that segment with the Chevrolet Aveo. Toyota has the top seller in the Yaris. The company has sold 54,000 so far this year, up 66% over 2006.


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