Ford to Exit the Minivan Market?
All the car blogs lately have been speculating on the direction
that the Ford Motor Company is going to take in the wake of
declining sales and stiff competition. We know that Ford has too
much capacity and we know that the company will be closing some
key plants and laying off an as yet to be determined number of
employees. What hadn't been clear is which models would be cut
from the line up. Now, it appears that Ford will exit the
lucrative minivan market. That's right, Ford apparently will
stick with building cars, trucks, and SUVs, and leave the
minivan market to the other players.
Ever since the Chrysler Corporation invented the minivan market
back in the early 1980s with its line of "K-car" derived
minivans - the Dodge Caravan, Plymouth Voyager, and the Chrysler
Town & Country - Ford has been playing catch up. Indeed, a
series of forgettable "star" named minivans were served up by
Ford and summarily rejected by consumers: the Aerostar,
Windstar, and the Freestar. Later, both Honda and Toyota brought
out their own entries and Ford, along with Chevrolet found
themselves trailing badly in an overcrowded segment. Indeed,
several GM divisions sell minivans, as does Kia and Nissan,
making the market especially tight.
Should Ford decide to go ahead with plans to ditch the minivan
market, it wouldn't be a complete retreat. For one, many
consumers prefer the automaker's popular Ford Explorer SUV while
its all wheel drive Freestyle wagon/crossover competes well too.
Finally, another vehicle - the Edge - will soon make its debut
and likely pull many minivan customers over. The Edge will be
yet another crossover vehicle - somewhat of a SUV/wagon hybrid -
and fill the need for consumers.
Yes, Ford appears ready to ditch the minivan market. No loss to
consumers and probably a smart move for the beleaguered
automaker.