Saturday, July 22, 2006

Ford Considers Rear Wheel Drive Muscle Cars The Future.

2007 Ford Shelby Cobra GT500 Coupe

Ford Speeds Turnaround Plan After $123 Million Loss

On the heels of Thursday's announcement that it posted a $123 million net loss in the second quarter, Ford put out the word that it is mulling ways to speed future products to market and may borrow products from other markets to sell in the U.S.

Ford CEO Bill Ford told Dow Jones the dramatic loss, which appeared to take investors by surprise, highlights the urgency of moving faster to turn around North American operations. Ford did not specify any future product plans, however.

But sources tell Inside Line the Dearborn automaker may pull the Fairlane ahead to calendar-year 2008 — as well as give it a new name. Originally, the Fairlane, which was introduced as a retro concept in 2005, was to be introduced in 2009.

Photo Thumbnail

The automaker is also said to be considering a Mustang-based Falcon for 2010. The internal thinking is that rear-wheel-drive muscle cars are the future of the American auto industry. Another likely vehicle to hit U.S. showrooms is the European Focus flex-fuel vehicle. But don't look for the company's Thai Ranger pickup to be introduced here because it's too small for the American market, sources say.

Ford told Dow Jones that the company will disclose further restructuring moves within 60 days. The company cited a long list of problems for its latest loss, which reverses a $946 million profit last year. They include falling demand for its SUVs and big trucks, luxury-car losses, and shrinking profits from the company's finance arm.

Photo Thumbnail

Ford warned that North American results could be even worse in the second half of the year.What this means to you: Ford needs to get through the next year if it hopes to survive in the long term. Look for some significant product announcements by fall.

Source - Inside Line

Classic American Muscle Cars