Does Ford Have a Big Problem with Small Cars?

Ford has a 126 day supply of unsold Fiestas.

Ford has a 126 day supply of unsold Fiestas.

We’ll admit to loving smaller cars, especially those that come equipped with hatchbacks, which have always seemed to be wanting for more buyers in the U.S. market. And we’re also fans of the Ford Motor Company’s Focus and Fiesta models – which are both available as hatchbacks.

The Fiesta and the Focus both offer levels of sophistication that’s uncommon in such cheap transportation, with sporty, European-inspired handling and an impressive array of creature comforts. They’re both high-quality models that we’d have no problems recommending to anyone in the market for a small automobile.

But could these small cars be on their way to becoming a big problem for Ford Motor Company? Signs seem to point that way.

According to the Wall Street Journal, Ford dealers are facing a glut of unsold Fiesta and Focus models. As 2011 ended, Ford had a 92 day supply of Focus models sitting on dealer lots. And the Fiesta fared even worse, with a 126 day supply of unsold models on dealer lots.

Compared to General Motors, which ended 2011 with just 68 days worth of the Chevrolet Cruze (a direct Ford Focus competitor) and a scant 61 day supply of the Chevrolet Sonic (a direct Ford Fiesta competitor), Ford’s inventories do indicate an oversupply. Automakers aim to have sufficient models for a 60 day supply – or less – on hand at any given time.

For it’s part, Ford told the Wall Street Journal they will take actions, even a slowdown in production, if sales don’t improve. What they don’t want to do is lower their asking price, or up the level of manufacturer subsidies through rebates.

And if Ford does indeed slow production of the Fiesta or the Focus, how will it impact the soon to be introduced Focus Electric – which is a plug in EV version of the Focus with no internal combustion engine?

 


About Cecil Helton

Cecil Helton Cecil Helton is a U.S.-based writer and editor with passions for cars, motorcycles, boats, technology and social media. Much of his professional life since 1996 has been web-centric, and he’s written and developed content on a variety of subjects. His work in the houseboat industry received wide acclaim, such as winning the 1999 Cisco Systems Growing with Technology award and being named one of five finalists in the manufacturing sector of the 2000 Computerworld-Smithsonian Awards. As an Air Force brat, he spent much of his childhood in a two-year cycle of moving to a new place, making new friends, establishing a life, and then moving again. Destinations included: Kentucky, Illinois, Texas, the Greek isle of Crete, California and Ohio. Today you’ll find Cecil coping with his 15 year old son’s decision to pursue a motorcycle license at the same time he gets his driver’s license, being active across the web on multiple social media sites, and of course, writing articles and creating content on automotive and car insurance related topics right here at CarInsurance.org.


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