Ford Focus Grabs Global Sales Crown as World Buys Small
CEO Alan Mulally entered Ford with dramatic changes in store, and the risk he took is now paying off. Ford made most of its profits off of their line of trucks and larger vehicles, but Mulally wanted to enter the global markets. He was unable to do that with trucks because most of the world was buying much smaller cars. Mulally then made the decision to focus on the Ford Focus, and now it is the number one passenger car in the world.
From an investment perspective, this announcement is very good for Ford, in that their sales are now much more diversified and reaching into global markets. Ford will continue to build upon its established larger car strengths, but also seems to be making strides in improving their smaller car lines. Their developments in fuel efficiency and smarter technologies will further boost their small cars and, overall, aid all of their lines.
I think that the move to smaller cars is a wise move by Ford, since they would be missing large portions of the market if they only sold large trucks. By entering the global market, Ford has the potential to increase profits immensely, but they still have to manage costs of entering new markets and ensure that their truck line is not neglected.