Friday, June 13, 2008

What's the alternative?

Jalopnik has a very interesting article about the prospects of Ford retooling their American truck factories so that they can build their more efficient European models. The fellows at Jalopnik cast some serious doubts on this idea because of the enormous cost that Ford would incur trying to retool an entire factory infrastructure to build a completely different product. I agree that it will be hugely expensive but what alternative does Ford have? The frightening truth is that $4/gallon gas is here to stay and America's love affair with (the casual use of) full size trucks and SUVs is coming to an abrupt end. Ford has always relied on the huge sales of their trucks as a cash cow and without truck sales Ford is in big trouble unless they can do something to fill the product gap. At least they have the benefit of a strong European portfolio of successful and well-designed cars that SHOULD be successful sellers in the newly changed US market.

Right now there are people that still cling to their monster SUVs claiming that they need them to drag their larvae around town. But soon owning one of these dinosaurs will not only be expensive but DEEPLY uncool. All the soccer moms will be scooting around in Mini Clubmans and giving disapproving stares to those wasteful idiots in their Expeditions....just wait.

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