Ford’s Turnaround Continues to Turn
(July 24th, 2006 under Automobile Industry )
Ford is in the 6th month of its turnaround plan, but mainly due to falling sales of trucks, this plan needs revision to accommodate falling revenue.
"Analysts at Ford began paying particular attention to monthly sales of pickups after industrywide pickup sales fell 6% in April. It was a crucial development.
Gas prices had been higher than consumers liked for more than a year, causing a steady exodus out of SUVs. But for the first time, the data suggested highly profitable pickup sales might be vulnerable, too.
In the past, pickup sales were largely viewed as resistant to increases in gas prices, since most full-size pickup buyers use the vehicle for work on farms and construction sites. But an estimated one-fourth of pickup buyers -- about 600,000 a year -- drive the big, powerful vehicles even though they don't need them."
Here is a link to the entire article from the Detroit Free Press:
http://www.freep.com/apps/pbcs.dll/article?AID=/20060722/BUSINESS01/607220376/1014
Mike
This entry was posted
on Monday, July 24th, 2006 at 10:46 am and is filed under Automobile Industry .
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