Tuesday, June 21, 2005

Ford: Choking on its own waste

Ford Escape Hybrid: The world's first hybrid SUV, the Ford Escape hybrid. Not sure the hybrid Escape is right for you? Use our hybrid car buyer's guide.

"Sales of the Ford Explorer, the automaker's second best seller after the F-series pickup, plunged 25.2 percent during the first five months of this year. Expedition sales are down 21.7 percent this year," according to AutoWeek.

SUVs, which once resulted in profit margins of over $10,000 per vehicle, are no longer as profitable because of higher gasoline prices, according to Ford officials.

Did Ford think the party would never end? Considering the mounting evidence of the costs of pollution, did Ford think that gas-guzzling would simply be acceptable, well, forever? Additionally, there were warning signs regarding the geopolitical problems of oil, aside from pollution, in the 70's, 80's, and 90's.

Can Ford only act when they have no other choice?

And what about the customers? $10,000 profit margins, hello? Many question the profit margins of gasoline and oil companies, but not car companies. I guess those fat Union contracts and executive perks need to be maintained at any cost?

While Ford does offer the wonderful Escape hybrid and will soon offer the Mercury Mariner hybrid, those vehicles do not even account for one percent of Ford sales. With such high profit margins, Ford had the resources, just not the vision, to push the development of hybrid cars and return to its automotive leadership role.

Instead, Ford must now choke on the waste of its greed and lack of vision. Unfortunately, so to must the rest of America.

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