Thursday, January 21, 2010

Detroit auto show report: GM, Ford load up small cars for bigger profits

At the Detroit auto show, General Motors Co. and Ford Motor Co. revealed their comeback strategy for small cars: Adorn them with features seldom seen in domestic econoboxes, such as roomy computer gadgets, interiors ,turbo charged engines and sporty sheet metal.

For example, the redesigned 2012 Ford Focus—Ford’s biggest splash at the show—has touch-screen controls for navigation, climate contro ,phone and entertainment. The car, due in early 2011, also can download applications utilized on Apple’s iPhone.

The small-car segment, which has been taken over by Asian auto makers, will be a key battleground as gasoline prices rise and federal mileage standards get tougher. But many Americans who equate small with cheap may balk at high stickers on small cars.

GM and Ford are offering a range of high- and low-end versions of the new cars. At the high end, Ford wants to present consumers “aspirational” small cars that appeal to affluent buyers, said Jim Farley, Ford’s group vice president of global marketing.


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