I'm no expert but I've read a little bit about this and in a way Ford did it to themselves. They allowed themselves to be manhandled by the unions and then they sunk much of their business into the sale of SUVs. The profit margin on an SUV is through the roof, the problem is that they focused on that so much that they let the development of other things slide. It was all good for a while, but now with gas prices through the roof the sale of SUVs is dropping and they are having trouble adjusting. Too many eggs in one basket.
|