New Ford Focus a Surprise Success

I’ll admit it: I did not think the redesigned Ford Focus would be a huge success. I mean, just look at it. There are some interesting angles, especially on the sedan, but come on, the coupe? It’s a dog. My old Escort had better lines.

Still, in our current economic surroundings the little economy car with a small price tag and high mpg is doing well. How well? The plant where it’s built in Wayne, Mich. is ramping up to produce 30% more Focus this year.

I reviewed the new Focus in November and thought the interior was well done. The Sync entertainment system is a genius idea actually implemented properly. Still, the Honda Civic is a far better choice, not to mention the other solid competition from Toyota, Hyundai and Mazda.

In any case, the Focus just passed the Chevy Cobalt in sales last month. Now there’s a car I’m even more shocked to see selling well — tepid economy or no.

Ford to build 30% more of its Focus small cars this year (USA Today)

Ford Not Targeting Families With Flex Ads

Ford’s answer to the minivan will not be directly marketed to families, according to a story by Automotive News. The company’s new head of marketing, Jim Farley — previously of the trendiest of trend-setting brands, Scion — has revamped the marketing plan of this very important new model to focus on trendsetters instead of just the family market.

As an early example of this plan, Ford had a famous street artist decorate the white roof of the Flex in various urban themes at the recent New York auto show. Ford wants to get far away from the minivan stigma with the Flex, especially since it’s discontinued its own failed minivan, the Freestar.

It seems to me Ford should play up the minivan stigma to the hilt with the Flex.

Auto Exec Predicts Jump in Car Prices

Yesterday, GM chief financial officer Fritz Henderson warned that car prices could soon jump significantly due to the rising cost of materials, regulatory fees and … (wait for it) … industry restructuring. 

Henderson said that because of all the union buyouts and shuttering of plants — which the U.S. auto industry said it needed to do to stay competitive and lean — costs would rise because the industry doesn’t have the same manufacturing capacity it once did. He also blamed new technology as a reason for increased costs.

We’re simply stunned that an executive would publicly say that these forces would cause a spike in prices for consumers, in stark opposition to most of the moves domestic automakers have made in recent years to save money. For one, GM has already begun utilizing its global R&D strengths to bring in better new cars to the U.S., like the Saturn Vue and upcoming Pontiac G8. That should lower its R&D costs overall. Ford is looking to do the same with future U.S. products. 

Volvo Is Upscale Enough

Sometimes we sit around the Cars.com office and just scratch our heads when we hear what car companies are doing. In yesterday’s Detroit News came word that Ford is looking to make Volvo — Ford owns the Swedish automaker — more of an upscale luxury brand to better compete with BMW and Mercedes-Benz. If you thought Volvo was already a luxury car company, it’s technically considered a near-premium brand. The differences are hard to explain, but recent Volvos I’ve reviewed were roughly $10,000 less than their BMW and Audi counterparts despite having similar features and engines. Other near-premium brands are Saab, Cadillac, Lexus and Infiniti.

Now, Ford has the best of intentions … for it. The company needs to make more money off Volvo, which continues to be unprofitable despite an improved lineup. However, with Audi already making inroads into BMW and Mercedes-Benz territory, is there room for another company to do the same?