WAYNE, Michigan, May 6, 2009

Ford "Focuses" On Smaller Cars

With $550 Million Investment, Michigan Plant To Go From Building Trucks To Compact, Modern Focus

  • Play CBS Video Video Ford Speeds Up Green Research

    While General Motors and Chrysler are scaling back in the face of record losses, Dean Reynolds reports that major U.S. automaker Ford will be investing in studying green technology.

  •  (AP Photo/David Zalubowski)

  • Fast Facts Obama Auto Industry Plan

    What's in store for GM and Chrysler after automakers' restructuring plans are spiked.

  • Photo Essay 2009 N.Y. Auto Show

    Automakers unveil newest offerings at the annual motor vehicle extravaganza.

(AP)  Ford Motor Co. will invest $550 million to convert its old Michigan Truck Plant into a facility that will build small compact modern cars, the car maker said Wednesday.

The retooled facility, which once built sport utility vehicles like the Lincoln Navigator, will now build Ford's next-generation Focus, expected to roll off the line next year.

The plant will also build a new battery-electric version of the Focus for the North American market. That vehicle is expected to debut in 2011.

The struggling automaker says roughly 3,200 jobs will be created in Michigan because of the plant conversion.

The majority of Ford's investment will be spent on manufacturing at the site and the remainder on engineering and launch costs.

Ford says it will also consolidate operations at its Wayne Assembly plant and transform two other truck and SUV plants - the Cuautitlan Assembly in Mexico and the Louisville Assembly in Kentucky - as part of the retooling.

"We're changing from a company focused mainly on trucks and SUVs to a company with a balanced product lineup that includes even more high-quality, fuel-efficient small cars, hybrids and all-electric vehicles," said Mark Fields, Ford's president of The Americas, in a statement.

The Dearborn, Michigan-based automaker will also build the same Focus it is offering its North American customers in Europe and Asia.

In addition to Ford's zero-emission Focus battery-electric car, the company is working on several other product plans. The company is working with Smith Electric to sell a battery electric commercial vehicle for North America in 2010. It also plans to introduce in 2012 a next-generation hybrid vehicle and a plug-in hybrid vehicle.

Michigan, Wayne county, and the city of Wayne have contributed more than $160 million in tax credits and grants to support Ford's expansion.

Ford shares rose 12 cents, or 2 percent, to $5.97 in morning trading.


© MMIX The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Share:
  • Share
  • Yahoo! Buzz
  • Mixx
Add a Comment
by sjc_1 May 7, 2009 12:39 AM EDT
"How many American cars are u seeing on the road in California these days?"

I looked online and Camry hybrids sell for about $1000 less than the Fusion hybrid. Most people in Southern California think Toyota, Honda and Nissan when they want a new car. Most would not consider an American car, no matter what. Most of the U.S. vehicles are pickups and SUVs out here.
Reply to this comment
by souljam76 May 6, 2009 6:35 PM EDT
We all believe Honda & Toyota will always be #1 in America. We can keep Ford but let's say goodbye to Chrysler & GM.
Reply to this comment
by sjc_1 May 6, 2009 4:54 PM EDT
Between 1994 and 1999, the Clinton Administration worked with the three U.S. car companies in the Partnership for a New Generation Vehicle (PNGV) Program. They all produced hybrid sedans that got more than 70 mpg. Ford, GM and Chrysler all said that they would not produce the cars. Toyota and Honda observed the program and built hybrid cars and have sold more than 1 million in the last 10 years.
Reply to this comment
by Oregon_State_OSU May 6, 2009 1:24 PM EDT
Ford "Focuses" On Smaller Cars


Ford and GM are about 30 years behind Toyota and Nissan & Especially Honda. Once again America and Detroit has to play catch up.
Reply to this comment
by displeased May 6, 2009 11:02 AM EDT
The #1 selling vehicle in the US is the Ford F-150 pickup. I believe that is true. So they are going to interfere with the #1 selling vehicle to produce a car that nobody wants.
Posted by jonesjep

Ford F-series pickup was a long standing best seller, but in 2008, the Honda Civic took over the #1 selling vehicle in America. Obviously somebody wants smaller cars.
Reply to this comment
by jonesjep May 6, 2009 10:51 AM EDT
The #1 selling vehicle in the US is the Ford F-150 pickup. I believe that is true. So they are going to interfere with the #1 selling vehicle to produce a car that nobody wants.
Reply to this comment
by midlclass May 6, 2009 10:21 AM EDT
this looks good. Maybe we still have a progressive auto company that may survive were. other companies couldn't or wouldn't change withwhat the market.conditions dictated. Go Ford save jobs improve your product and keeping it affordable. Just likr old henry belived in 80 years ago
Reply to this comment
by DaVicar5 May 6, 2009 9:04 AM EDT
Isn't this a bit like closing the barn gate after all the horses declared bankruptcy up in the fire?
Reply to this comment
  • MOST POPULAR
Latest News
News in Pictures
Scroll Left Scroll Right
Connect with CBS News

Stay connected with the CBS News using your favorite social networks and online news applications: