Ford is betting the success of the new Fusion will be based on fuel economy.Pricing for a European derived car remains an issue.
Ford is showing today at the North American International Auto Show – NAIAS – in Detroit its latest attempt at a ‘world’ car – a Mondeo based, Mexican-built Fusion mid-size sedan. The existing Mazda6 derived Fusion is the best selling car in Ford’s U.S. lineup and the only Ford passenger car in the Top Ten best selling list.
Previous Mondeo-based Ford offerings, the Contour and Mercury Mystique, were not successful due to a combination of high price, poor quality and limited interior room. This time around Ford claims things will be different. The new Fusion will deliver best-in-class fuel economy with its upcoming gasoline, hybrid and plug-in hybrid versions, Ford boasts.
The technology used to accomplish this is conventional, long in production elsewhere and likely – given Ford’s previous experience – expensive. With the new 2012 Camry now on sale with $235 a month leases for well equipped models and a new Honda Accord due this year, Fusion will have to compete on price when the new one appears in Ford showrooms in North America (and South America) later this year. Mondeo will be introduced next year in Asia and in Europe where it can be priced higher.
Ford’s relative lack of success in car segments will make this launch one to watch. The Number 2 automaker in U.S. sales should have picked up more than a 3.7% increase in passenger car sales during 2011 while the industry gained 9% in the view of critics. And this small gain came with all the major Japanese automakers virtually out of the market for months – May to September or later and still not completely recovered – because of natural disasters.
In fact, Ford car sales were actually down 16% in December of 2011. Lavishly publicized Fiesta sub-compact and Focus compact launches were not strong successes as high sticker price resistance and early quality problems appeared to overcome their relatively good fuel efficiency in a year when U.S. gasoline prices stayed well above $3 a gallon.
Ford is betting the success of the new Fusion will be based on fuel economy as well. Fusion will offer hybrid and plug-in hybrid options, and two EcoBoost four-cylinder engines, an automatic start stop system to shut off the engine at idle, and front-wheel drive and all-wheel drive applications. There will be a choice between automatic and manually shifted six-speed transmissions. Each version is expected to deliver top fuel economy in its segment. We will see.
