WHISPERS: Ford Could Exit Minivan Market
Motown is buzzing with rumors of what Ford Motor Co. is planning to announce when it unveils its massive reorganization plan on Monday, but the elimination of its minivan division seems to be the hottest rumor thus far.
Ford will reveal an overall restructuring plan that will include plant closings, layoffs, and executive departures on Monday when it announces its fourth-quarter earnings. Massive layoffs topping 20,000 employees and flow chart reorganizations have long been expected.
But the elimination of the minivans has been a hot topic among the chattering masses in Detroit because of how disappointing the segment has performed for the company. Last year, Ford Freestar sales were down 25.1 percent from 2004, and Mercury Monterey sales were down 53.1 percent, according to Autodata. Ford is considering building a version of the three-row Ford Fairlane concept, which made its debut at the Detroit auto show last year, but it is generally referred to as a "tall wagon," not a minivan.
USA Today went as far to report that Ford is expected to say in the Monday announcement that it will abandon the minivan segment, according to two unnamed sources. Another possibility is that the company will attempt to merge its crossover program with the minivan segment and simply phase out the minivans over time.
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