In a recent video question and answer interview, Alan Mulally, Ford’s CEO, discussed the role of the compact car and SUV market in America’s future. Here are a few highlights of that interview.
The most important thing Mulally said that compact cars aren’t going anywhere soon. With more Americans switching to smaller Ford cars, he said the automaker is switching its resources to accommodate that demand. He also believes that SUVs will continue to fall in demand as long as gas prices stay as high as they are. Mulally also felt that the demand for SUVs probably won’t increase the same way the demand for larger cars increased following a similar fuel crisis in the 1970s.
During the first quarter of 2008, sales for small, fuel-efficient cars increased by more than 30 percent. As if that figure isn’t staggering enough, the auto market as a whole experienced a sales decline of eight percent overall. Sales of midsize cars stayed about the same as they were last year.
But Mulally also implied that Ford is taking a small gamble on the oil industry. With all of the changes the automaker is making to increase production of smaller cars, it’s almost imperative that fuel prices stay where they are at to make the switchover worth the trouble.
Either way, you the driver can benefit from these new moves. If gas prices stay where they are, you can get a compact Ford car with great gas mileage to save money at the pump. If gas prices go back down, you’ll be spending even less with every mile you drive. It’s a win-win situation for everybody involved.
