Small Cars Are the Future, Ford Thinks

Ford's authorized dealers reported extremely low sales in October

While there's no secret that Ford has seen its sales collapsing in the last period, the members of the board are constantly having meetings to come up with solutions. Obviously, there were different opinions, The Detroit News wrote today, with some members saying that Ford should concentrate on its new models while other argued that new, smaller and more fuel efficient models could prove to be the easiest way to revamp the company.

Basically, Ford wants to adopt the same market strategy that continues to keep European car brands in business: building smaller low-cost cars that would provide enhanced fuel economy, with reduced costs for both the manufacturer and the clients.

"We're only going to be in business if we create products that people really do want and value. This is the essence of creating a viable Ford,” CEO Alan Mulally told The Detroit News.

But even so, taking a decision is extremely difficult, Ford officials admitted, with analysts predicting that such a move is somehow an all or nothing investment: in case the new small car models are powerful enough to gain the market's attention, Ford could save its production; if not, sales could collapse even more, bringing the American carmaker close to bankruptcy.

Meanwhile, Ford is still waiting for government assistance, with a $25 billion funding program already approved by the Congress. Board members are still confident that government funds could help Ford a lot, pointing to plans to concentrate on fuel efficient engines that still require additional loans or investments.

"Whoever is going to invest or loan us money wants to know we're taking the actions to create a viable company going forward. We are absolutely taking the appropriate actions. We've demonstrated that we're making progress,” Mulally told the same source.