Not only does Ford Motor Co. plan to bring out a car smaller than the compact Focus, it also plans a sport-utility vehicle smaller than the Escape.
But don’t ask Marty Collins, general marketing manager for Ford division, whether higher gas prices prompted the decision.
“The media made higher prices very visible when they were on the way up, but not as visible on the way down,” he said. “Some people still think gas is at $3 a gallon.” (It’s around $2.50 now.)
Rather, the move to smaller vehicles was motivated by the need for lower-priced, entry-level cars and sport-utilities.
“There were other factors, too, such as corporate average fuel economy regulations (demanding more mileage from each automaker’s fleet of vehicles) as well as the income levels of many consumers that force them to buy cheaper vehicles,” he said.
“But long before gas prices spiked, we said there was business to be had below Focus and Escape because the Japanese have put a stake in the ground and said they’ll have a string of vehicles coming out at that end of the market,” Collins said in an interview at the Specialty Equipment Market Association convention in Las Vegas.
At that event, Toyota unveiled its new Yaris, a subcompact that will replace Echo as its smallest car; Honda said it will add the mini Fit to its U.S. lineup next year; and Mitsubishi said it is studying a mini.
“Focus and Escape are our entry-level vehicles in those segments,” Collins said. “You’ll see smaller vehicles from us by the end of the decade, maybe even a smaller pickup truck, because that’s one of the last areas we need to be in as we move forward for the future.”
Ford’s agreement with Italian automaker Fiat is to build a replacement for Ford’s European minicar, the Ka. It’s not destined for the United States.
All in the Ford family
Bill Ford, chairman of the automaker bearing the family name, has appointed Steven Hamp, 57, vice president and chief of staff.
Hamp replaces Jim Vella, 49, who becomes a visiting professor touring college campuses on behalf of Ford. Hamp had been president of the Henry Ford Museum in Dearborn, Mich. Did we mention that he’s also Bill Ford’s brother-in-law?
What’s up at Kia
Len Hunt, who last month replaced the ousted Peter Butterfield as executive vice president and chief operating officer of Kia Motors of America, said the lineup will be revamped over the next few months.
There’s a new Sedona minivan coming in February, a new midsize Optima sedan in April and then face-lifts for the compact Spectra sedan, Sorento SUV and midsize Amanti sedan next summer. A new vehicle “that we aren’t talking about yet” arrives next fall.
Kia also is toying with a product intro for the Chicago Auto Show in February.
Ian Beavis, vice president of marketing, wouldn’t say what it might be, but admitted the vehicle Kia won’t talk about is one possibility.
Insiders rule out that it’s the rumored coupe/convertible derived from the Tiburon from Kia’s partner Hyundai.
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(Write to Jim Mateja, Chicago Tribune, 616 Atrium Drive, Vernon Hills, IL 60061-1523, or send e-mail, including name and hometown, to jmatejatribune.com.)
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AP-NY-11-11-05 0614EST
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