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Friday, July 10, 2009

Fusion's jump to No. 3 lifts Ford confidence

26% jump shows revamp is on pace
By BRENT SNAVELY • FREE PRESS BUSINESS WRITER • July 9, 2009


In a month when industry sales remained dismal, the strong 26% June sales increase for the Ford Fusion is giving Ford Motor Co. confidence that its effort to revamp its car lineup is on the right track.

In June, the Fusion was the third best-selling mid-size car behind the Toyota Camry and the Honda Accord, according to Autodata Corp. It was also the seventh best-selling car or truck on the market.

U.S. consumers have purchased 85,146 Fusions so far this year, compared to 131,043 Accords and 150,242 Camrys. But with both of those Japanese models posting declines of more than 35% so far this year, Fusion is making big gains in the car market.

With prices ranging from $19,270 to $25,825, and a combined highway and city EPA rating of 27 miles per gallon for some gasoline models, the car has the right mixture of affordability and fuel efficiency for the current economic climate, said Jesse Toprak, an automotive analyst for the consumer automotive Web site Edmunds.com.

“It happens to be in a category where there is decent demand,” Toprak said. “It is encouraging … especially in an environment when sales are so low for almost everything out there.”

For Ford, which had virtually no presence in the midsize car segment less than 10 years ago, with the exception of fleet and daily rental sales, the success of the redesigned Fusion is a critical part of the company’s strategy to revamp its lineup and shift a larger percentage of its sales from large SUVs to cars.

“We need to get back in the car business in a big way because that is where the market is headed,” said Ford sales analyst George Pipas.

George Gorno, president of Gorno Ford in Woodhaven, said the Fusion is attractive to both former Ford customers and new customers alike.

“We are getting a lot of import buyers that are moving into this car,” Gorno said. “The new technology that the Fusion has is very appealing to that mid-20s group.”

Gorno said many of his Fusion customers were previously leasing large SUVs and pickups but are looking to lower their monthly lease payments. They can do that by buying the lower-priced Fusion. It’s also less costly to drive because of its fuel efficiency.

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