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Old 09-15-2008, 03:44 PM   #1
dav3
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Ford to Release 65mpg Car, but NOT in America


Quote:
The 65 mpg Ford the U.S. Can't Have
Ford's Fiesta ECOnetic gets an astonishing 65 mpg, but the carmaker can't afford to sell it in the U.S.

by David Kiley

If ever there was a car made for the times, this would seem to be it: a sporty subcompact that seats five, offers a navigation system, and gets a whopping 65 miles to the gallon. Oh yes, and the car is made by Ford Motor (F), known widely for lumbering gas hogs.

Ford's 2009 Fiesta ECOnetic goes on sale in November. But here's the catch: Despite the car's potential to transform Ford's image and help it compete with Toyota Motor (TM) and Honda Motor (HMC) in its home market, the company will sell the little fuel sipper only in Europe. "We know it's an awesome vehicle," says Ford America President Mark Fields. "But there are business reasons why we can't sell it in the U.S." The main one: The Fiesta ECOnetic runs on diesel.

Automakers such as Volkswagen (VLKAY) and Mercedes-Benz (DAI) have predicted for years that a technology called "clean diesel" would overcome many Americans' antipathy to a fuel still often thought of as the smelly stuff that powers tractor trailers. Diesel vehicles now hitting the market with pollution-fighting technology are as clean or cleaner than gasoline and at least 30% more fuel-efficient.

Yet while half of all cars sold in Europe last year ran on diesel, the U.S. market remains relatively unfriendly to the fuel. Taxes aimed at commercial trucks mean diesel costs anywhere from 40 cents to $1 more per gallon than gasoline. Add to this the success of the Toyota Prius, and you can see why only 3% of cars in the U.S. use diesel. "Americans see hybrids as the darling," says Global Insight auto analyst Philip Gott, "and diesel as old-tech."

None of this is stopping European and Japanese automakers, which are betting they can jump-start the U.S. market with new diesel models. Mercedes-Benz by next year will have three cars it markets as "BlueTec." Even Nissan (NSANY) and Honda, which long opposed building diesel cars in Europe, plan to introduce them in the U.S. in 2010. But Ford, whose Fiesta ECOnetic compares favorably with European diesels, can't make a business case for bringing the car to the U.S.
TOO PRICEY TO IMPORT

First of all, the engines are built in Britain, so labor costs are high. Plus the pound remains stronger than the greenback. At prevailing exchange rates, the Fiesta ECOnetic would sell for about $25,700 in the U.S. By contrast, the Prius typically goes for about $24,000. A $1,300 tax deduction available to buyers of new diesel cars could bring the price of the Fiesta to around $24,400. But Ford doesn't believe it could charge enough to make money on an imported ECOnetic.

Ford plans to make a gas-powered version of the Fiesta in Mexico for the U.S. So why not manufacture diesel engines there, too? Building a plant would cost at least $350 million at a time when Ford has been burning through more than $1 billion a month in cash reserves. Besides, the automaker would have to produce at least 350,000 engines a year to make such a venture profitable. "We just don't think North and South America would buy that many diesel cars," says Fields.

The question, of course, is whether the U.S. ever will embrace diesel fuel and allow automakers to achieve sufficient scale to make money on such vehicles. California certified VW and Mercedes diesel cars earlier this year, after a four-year ban. James N. Hall, of auto researcher 293 Analysts, says that bellwether state and the Northeast remain "hostile to diesel." But the risk to Ford is that the fuel takes off, and the carmaker finds itself playing catch-up?despite having a serious diesel contender in its arsenal.
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Old 09-15-2008, 04:26 PM   #2
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And people wonder why Ford and Chevy are getting owned by Toyota and Honda.
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Old 09-15-2008, 04:31 PM   #3
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And people wonder why Ford and Chevy are getting owned by Toyota and Honda.
Acura is my fav brand of vehicles, which they also own Honda
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Old 09-15-2008, 04:33 PM   #4
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I flew back from Medoc in France last week. All the cars are small Renaults, Ford Fiestas etc some diesel some petrol (gas) most are getting more than 40 mpg. I think there is more to the story than just America does not like Diesel ?
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Old 09-15-2008, 06:10 PM   #5
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I wonder why Ford can't manufacture fuel efficient cars for sale here in the US?

I know America is not run by Big Oil in any way, so I just can't figure it out...
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Old 09-15-2008, 06:37 PM   #6
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I can't believe that I had forgotten to link to the original story.
http://www.businessweek.com/magazine...9060491065.htm

But yea, once again big business interferes with something that would be a potentially great thing for the American people.
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Old 09-15-2008, 06:57 PM   #7
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The Fords that are released in US and Canada are weak compared to what they release in EU and AU.

Lookit these cars on the Australian website.

www ford com au
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Old 09-15-2008, 07:11 PM   #8
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why do gas efficient cars have to be so ugly..

edit:
except the tesla
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Old 09-15-2008, 07:28 PM   #9
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Originally Posted by banthis View Post
why do gas efficient cars have to be so ugly..

edit:
except the tesla
I actually think the body styling of that Ford isn't that bad. And besides that, it's not just 'gas efficient' cars that are ugly:

The Chevy Malibu is terrible looking.


The new Taurus is pretty horrendous as well.


But yea, that Tesla is badass though.
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Old 09-15-2008, 07:32 PM   #10
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I like those Teslas..sharp looking ride
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Old 09-15-2008, 07:35 PM   #11
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Why cant they make these cars for sale in the USA? Government regulations. Until the left realize that we will continue to get fucked by the big businesses they want to get under control
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Old 09-15-2008, 08:13 PM   #12
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Originally Posted by born2blog View Post
Acura is my fav brand of vehicles, which they also own Honda
Acura is owned by Honda
Infinity is owned by Nissan
Lexus is owned by Toyota
Buick, Cadillac, Chevrolet, GM Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall, and Wuling is owned by GM
Ford, Lincoln, and Mercury, Volvo of Sweden, Mazda of Japan, Aston Martin of England is owned by Ford Motor Company...

The American companies are too FAT.

DG
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Old 09-16-2008, 09:18 PM   #13
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Good that thing is ugly
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Old 09-16-2008, 09:23 PM   #14
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its not about the appeal of it's outer cosmetic layer. the point is that it gets 65mpg and saves you money over the lifespan of the car. but then again, it's a ford so the lifespan is quite limited.
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Old 09-17-2008, 07:02 AM   #15
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Pretty nice design!
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Old 09-18-2008, 07:42 AM   #16
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I'd buy it!
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Old 09-18-2008, 08:20 AM   #17
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tesla car is nice!
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Old 09-18-2008, 08:39 AM   #18
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One of the things that hurts the american car companies in the US market, is the simple fact of the Safety features that are mandatory by law. Adds an ass load of weight, and the mpg goes down.
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Old 09-18-2008, 10:49 AM   #19
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Do you mean to tell me that the USA, the GREATEST COUNTRY IN THE WORLD can not have this car?

Ohhhh nos!!!!
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