Ford Motor can make money by selling small cars in the US, CEO Alan Mulally told CNBC.
Ford announced on Wednesday it will invest $550 million into converting its Michigan truck plant into a facility that will build the next generation smaller-size and fuel efficient Ford Focus line and an electrical car due out in 2011.
“With the new Ford plan, all of our cars are going to based on global platform,” Mullaly said in a live interview. “So we get the scale, the suppliers are lined up, we get the quality and the efficiency.”
Mulally said Ford customers are satisfied with the new products and the market share increase will ultimately come from making more cars that buyers want.
“What we’re seeing in the market platform right now is very gratifying because the customers love the new Ford products,” he said.
Meanwhile with rising oil prices, Mulally said his company is continuing to work toward developing its fuel-efficient cars.
“Gas tax is one thing we can do, but we need to get the consumer involved so that the consumer can make an economic decision,” he said.