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'High-end' Ford Focus shows new strategy

USA Today - Feb 9, 2011

At more than $28,000, a fully loaded 2012 Ford Focus may still be a compact, but it can't exactly be described as an economy car. The price approaches an entry-level Lexus or Audi.

The new Focus, due on sale this spring and the second-smallest car that Ford (F) sells in the U.S. after the subcompact Fiesta, is among the first of a new generation of small cars that represent an interesting experiment for the auto industry: Are American buyers actually willing to pay the price for feature-packed, upmarket versions of small, gas-stingy cars?

A lot is at stake for the U.S. auto industry. Automakers see the prospect of making significant money for the first time on small cars made in North America — and lessening their dependence on pickups and SUVs. Those vehicles have brought in the profits because buyers would load those vehicles up with high-margin trim, while they saw small cars as basic transportation appliances and expected a bare-bones price.

Read Full Article from USA Today

- Posted: 2011-02-09 22:44:02

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