Ford debuts more upscale Focus to trade sales for richer margins
AS FORD Motor Co. rolls out a redesigned version of its Focus compact car in China and Europe, it’s also debuting a strategy to be more choosy about which buyers it battles for and where.
The carmaker is taking the wraps off upscale grades of the car in London including the Focus Vignale, expanding the line-up of its premium sub-brand in Europe. Ford introduced sportier ST versions of the Focus in China, which will start exporting the model to the US beginning next year.
Chief Executive Officer Jim Hackett is shrinking Ford’s passenger- car line-up as consumers across the globe increasingly snub them in favor of roomier crossovers. The only sedans, hatchbacks and coupes that are sticking around will be lower-volume, higher-priced models that’ll help the company reach a longsought profit margin goal.
“We’re more selectively competing in the car business, so this Focus reveal is a big deal for us,” Jim Farley, Ford’s president of global markets, said in an interview.
“This is an opportunity to position the car more selectively in these very large markets in China, Europe and in the US.”
Ford also showed a revamped Escort model along with the Focus in China, betting that the sporty mid- sized vehicles will lure buyers away from Volkswagen AG’s Passat and Toyota Motor Corp.’s Corolla. The new models will be built by Ford’s local venture with Chongqing Changan Automobile Co. The second-largest US carmaker said it’s deepening its pact with Changan and another partner, Jiangling Motors Corp., by starting a new distribution unit. — Bloomberg