Alx

In an attempt to exit unprofitable and flagging markets, Ford Motor (F) is expected to say Monday that it will get out of the minivan segment, according to two sources familiar with the plan who didn't want their names used ahead of the official announcement.
Ford will lay out an overall restructuring plan that will include plant closures, layoffs and executive departures Monday when it announces fourth-quarter earnings.



Ford spokesman Jon Harmon would not confirm a minivan announcement, but he said the restructuring plan includes some changes in the company's product lineup.



The automaker is expected to post a profit for the year but lose money in North America. Through the first three quarters, Ford lost $1.34 billion in North America.



Ford's minivans have been weak performers in a crowded segment. Last year, Ford Freestar sales were down 25.1% from 2004, and Mercury Monterey sales were off 53.1%, according to Autodata. Freestar, formerly known as Windstar, was remodeled for the 2004 model year.



If Ford quits making minivans, "What they're essentially saying is, if you can't be No. 1 or 2 in a segment, then it's not worth being there," says David Cole, chairman of the Center for Automotive Research.



"We have to pick and choose where we want to compete," Mark Fields, Ford's executive vice president and president of the Americas, said in an interview last week. "The idea you have to be in all the segments, that's an old way of thinking."



Ford already has announced that new products will be going into the plant where it currently makes the Freestar and Monterey minivans. The company announced earlier this month that it will add the new Ford Edge and Lincoln MKX crossover vehicles to the Oakville, Ontario, plant, starting production in October.



Ford also is considering building a vehicle similar to a Ford Fairlane concept shown at auto shows last year. That had three rows of seating but looked more like a tall station wagon than a minivan.



Crossovers are the hot new segment in the auto industry. Built on car platforms and engineered with SUV-like functionality, crossover sales hit more than 2 million last year, up from zero in 1995.



General Motors also might be thinking about leaving the minivan market. It is closing its Doraville, Ga., plant that makes its minivans sometime in 2008.



The automaker is still trying to figure out what kind of vehicle should replace them, spokesman Tom Wilkinson said. "The reality is, we're looking at a lot of alternatives for people carriers," he said.

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Alx

Personally im surprised as far the used cars go, its their best seller amongst SUV market. Used minivan's especially Ford really sell well. I find this to be a real shock. But i guess they feel its in thier best interests....

Carbon

I don't think manufacturers care that much about how a car sells used (besides the residual values). This would be more of a concern of dealership and people who already own the cars. Ford has already gotten their money for the sale, so the sale of the pre-owned vehicle profits someone other than the manufacturer (as far as I know).

HALO

suv's have replaced minivans anyway

Centurion

Exactly. You should see the parking lot at my younger brothers school. Almost 30% of all the mothers pick their childrens up in XC90s, Range Rovers and Cayennes.

audi_rudy

same with my school. The most popular car i see is either range rover, cayene or yukon/ suburben which i think is the most popular over here. These things are used by peoplue who have money because they dont always want to be seen in a minivan which isnt luxurious or because they can get a bigger faster meaner truck. I never have liked minivans, sure they have room but they never appealed to me

Giannis

i guess these new have nothing to do with europe. IMO, minivans never sold in europe like they did in the US. they were never considered as a trend and they have low but steady sales here. IMO here SUVs sell more because sedans sell less.

Centurion

I think that it's pretty wise to buy an SUV instead of a minivan. An SUV is both practical and luxurious. During the day you can transport your kids comfortably and during the night you can cruise in the car and look like a stunner at the same time.

Giannis

And you can do more things with an SUV than with a minivan. But you can't overlook one thing. Still SUVs cost more...

BTW, what kind of school do you guys attend? In my local school the most expensive car is an E-Class as far as i've seen...

Centurion

True they are a lot more expensive but you get what you pay for. The school my friend attends and which I also attended is an english school where many foreign people with important jobs place their children. A large majortiy of the parents are CEO, own companies or have high paying jobs.

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