Ford Plans to Develop Low-Cost Vehicle image

Ford plans to develop a low-cost Fiesta-based subcompact which it will sell globally, but not a stand-alone low-cost brand.

“We are looking around the world at opportunities to offer a car priced below the Fiesta,” said Ford Motor Co. CEO Alan Mulally.

The model, which is called ‘value B’, will have the same size as the Fiesta but it will cost less. Mulally didn’t give any details about where the model will be manufactured or sold. Ford already has in Europe a model that is smaller and cheaper than the Fiesta, the Ka minicar that Fiat manufactures for Ford in Poland.

Minicars such as the Ka are not considered models able to become global cars as not many markets have demand for such vehicles. But Mulally believes that Ford’s minicars have what it takes to be sold globally. He also said that the price for the future low-cost Ford vehicle will be kept down by sourcing parts worldwide and using a global architecture. Although Ford is focused on developing a low-cost model, it does not plan to create a separate brand such as Renault’s Romanian subsidiary, Dacia.

“We do not have a firm plan at the moment [for a global sub-B model], but clearly being competitive in every market segment is important,” Mulally said.