Photo: http://strumors.automobilemag.com
Ford, and the other major US manufacturers had gotten used to people buying lots of SUVs and pickup trucks, at a steady rate. However, as fuel prices along with people’s green awareness, downsizing has really taken hold of car buyers in the States, and it has affected the manufacturers in a negative way.
The Blue Oval has now announced that their very good profit margins are bound to drop, in the US, as their customers have began to prefer smaller cars, in favor of trucks and SUVs. They expect a 8% to 10% drop in profit margins, which is still better than the 12% drop they recorded in Q3.
According to Mark Fields, Ford of the Americas President: “We continue to see consumers trading down to smaller vehicles [. . .]Less Fewer trucks, more small cars and those vehicles have smaller margins [. . .] We have seen a pricing environment that has been fairly reasonable [. . .] But in the fourth quarter, our margins will not be as strong.”
According to Mark Fields, Ford of the Americas President: “We continue to see consumers trading down to smaller vehicles [. . .]
Google News