Ford Motor Co., the world's number two automaker, concedes that its market leadership in popular sport utility vehicle, the most profitable group of vehicles Ford sells, has created a dilemma for a co...
Ford Motor Co., the world’s number two automaker, concedes that its market leadership in popular sport utility vehicle, the most profitable group of vehicles Ford sells, has created a dilemma for a company that wants to be recognised as a leader in improving fuel economy and cutting emissions.
“There are very real conflicts between Ford’s current business practices, consumer choices and emerging views of sustainability,” Ford says in a corporate citizenship report.
Sport utilities and other light trucks are typically less-fuel-efficient and have lower emissions standards than cars.
Ford’s truck and SUV sales have boomed, making its North American operations the backbone of its world- wide profits.
The company has six SUV models, including the new Escape due out this fall, up from two in 1990.
The Ford Excursion, the largest SUV on the market, gets 10 to 18 miles per gallon and has become the target of environmental groups such as the Sierra Club.
Ford argues that the profit loss of not meeting the surging Baby Boom demand for the vehicles would, in turn, make it more difficult to generate the financial resources necessary to invest in research and development of new technology and products.
Ford says it has implemented short term measures, including making all of its light trucks low-emission vehicles.