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Ford Sets Best-in-Class Initial Quality Target for New Compacts in 2010

Ford Motor Company has set a new target of achieving best-in-class initial quality for compact cars the company will launch in North America in 2010.

We aim to launch our new compact vehicles at 800 things gone wrong per 1,000 vehicles. That’s more than 500 TGWs less than the predicted industry average—and we believe these levels will ensure our upcoming small cars will achieve industry-best initial quality.

—Bennie Fowler, Ford’s group vice president, Global Quality

In 2007, best-in-class initial quality in the small car segment was 1,058 things gone wrong, while the industry average was 1,512.

Ford recently announced plans to convert three light truck plants to small vehicle production, paving the way to sell several European-designed small vehicles in North America. (Earlier post.)

Last year, passenger cars represented 49% of sales industry-wide, trucks and large SUVs accounted for 32% and crossovers were 19%. The product mix at Ford was nearly the opposite, with trucks and SUVs accounting for 52% while cars were at 30%. Crossovers were 18%.

Ford says that its product mix will change dramatically over the next 5 years. Trucks and SUVs are expected to account for 38% of the mix, cars will grow to about 38% and crossovers will climb to 24%.

Comments

sjc

Ford could sell a lot of Focus in the U.S. but the small margins may be holding them back. The fact that customers may chose to buy a Focus rather than a higher margin car when they come on the lot could be why they do not promote them more.

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