Ford Bullish on Small Cars

Ford kick-started the SUV revolution with the introduction of the Explorer SUV in the '90s, but the next big opportunity it sees is in small cars. That's according to Ford sales analyst George Pipas, who spoke to a gathering of Chicago-area media recently. Who are the buyers that will drive growth in this segment? Pipas says it’s Millennials, a demographic that wasn't even driving when the Explorer debuted.

It's easy to see why Ford is focused on Millennial buyers, which it counts as those born from 1980-95. Every day about 11,000 Millennials become old enough to drive in the U.S., according to Ford. With 50 percent of first-time buyers choosing small cars, there are sales to be had, Pipas said.

For Millennials, though, small doesn't necessarily mean basic. "[Millennials] want more than an econobox in a small car," he said. "They will give up something else to get what they want on the car."

2011 Ford Fiesta to Debut at LA Auto Show

The North American version of the Fiesta subcompact will debut at the 2009 Los Angeles Auto Show in early December. Ford made the announcement today and added that the new car, a 2011 model, will go on sale next summer.

No additional information was revealed, however, we do know the U.S. will get a sedan and two-door hatchback. The Fiesta sedan sold in China is shown above. It’s still not known what the Fiesta’s powertrain will be; that information will be revealed at the December show.

Mazda2 Subcompact To Hit U.S. in 2010

Today, Mazda’s CEO Jim O’Sullivan announced to dealers that the company would bring its global subcompact car, the Mazda2, to the U.S. It's slated to go on sale in late 2010, and that's about the same time the Ford Fiesta, which is based on the same platform as the Mazda 2, hits the streets.

The U.S. version — Japanese and European models can be seen here — will be unveiled at the Los Angeles auto show in December.

While Mazda certainly needs a less expensive car to slot below the Mazda3, we’re surprised it has taken the company so long to bring this car, which has been on sale in Japan since 2007, to the U.S. Perhaps Ford, which owns a stake in Mazda, didn’t want anything to overshadow the roll out of its much-hyped Fiesta.

What's Next for Ford's 'Fiesta Movement' Experiment?

When Ford handed out 100 Fiestas to YouTube users last spring as part of its “Fiesta Movement,” it was an experiment in utilizing social media to build product awareness. It’s counting the project as a success, thanks to 3.5 million views of the videos (and the YouTube crowd produced double the number of videos it was supposed to).

Ford credits the low-cost ad campaign for increasing awareness of the Fiesta up to 38% among 16- to 24-year-olds, a demographic that wasn’t even alive when the Fiesta left the U.S. back in 1980. The Fiesta’s awareness level compares to that of the Ford Flex and Ford Edge, two cars that are already available and have standard marketing campaigns behind them. Now the question is, what’s next?

Due to emissions laws, the 100 Fiestas are heading back to Europe, and the vehicle won’t hit U.S. dealerships until the third quarter of 2010. Ford’s experimental marketing department is tasked with creating “Fiesta Movement 2.0” to bridge the gap. While the team continues to brainstorm, Fiesta brand manager Sam De La Garza has said that ad budgets will be 10%-20% lower for the Fiesta than a traditional launch due to social media.

Of course, by next year no one will be talking about social media’s advertising abilities if the Fiesta fails to sell. The real challenge will be when it goes head to head with other models that target the same demographic like the Kia Soul.

Ford’s Fiesta to Party on—Without the Fiesta (AdvertisingAge)

Ford Fiesta First Drive

At the 2009 New York International Auto Show, Ford provided a couple of European-spec Fiesta subcompacts for the media to drive, and I took one out for a spin on the streets of Manhattan. Of all the foreign-spec cars I've driven as teasers of upcoming American products, this one was probably the closest to what we'll actually get here in the States, which makes it all the more maddening that the 2011 Ford Fiesta is still about a year away.

I drove a five-speed manual with a 1.6-liter four-cylinder, which is basically what we'll get in the U.S., along with a four-speed automatic. Even with the four adults we had in the car, there was enough low-rpm power to take off repeatedly in a patch of stop-and-go gridlock. It's certainly powerful enough for driving on the flatlands, but I'd have to drive a loaded Fiesta on hills to know what it's really made of.

Ford Tries to Start 'Movement' With Fiesta

Spreading the word about an exciting new product that meets young people’s driving needs, or cynical attempt to brand oneself as “hip” by latching onto so-called Millennials?

This is the question we’re asking in the wake of Ford’s announcement about its advertising scheme for the Fiesta, the compact European vehicle that Ford will bring to the U.S. in 2011. Ford’s “Fiesta Movement” involves handing the keys of 100 Fiestas to “100 socially vibrant Fiesta Movement ‘Agents’” who will expound upon their driving experiences on social media sites like Facebook and YouTube.

From a strictly business standpoint, the campaign makes sense. Ever since Barack Obama proved you can become president by taking advantage of plugged-in youth, this kind of stuff is all the rage. Millennials will account for 70 million drivers by 2010, or 28 percent of the driving population that hasn’t yet had a chance to develop much brand loyalty.

On the other hand, “movements” aren’t often started by corporations. Just because 100 25-year-olds are blogging and YouTube-ing about the Fiesta doesn’t mean the product will become a youth staple. Take it from this Millennial that it’s just as likely that the “Agents” will become targets of link-sharing ridicule if their footage or commentary appears too much like a commercial.

And, really, how will Ford avoid this? Will it be able to censor the Agents if they think the Fiesta is a piece of garbage? Let us know your thoughts on automakers trying to become the next “Baby Loves Banjo.”