Will the Ranger be Shelved?

The Dearborn based Ford Motor Company is stillthe declining demand for the compact pickup. Last
struggling to bring the company back toyear, Ford reported that they have sold 24
profitability. Crucial decisions needs to be madepercent less compact pickup trucks compared to
since time is not on their side as well as the trend2005. And the woes in the segment continue as
in the auto market. One issue that Ford is in thethe company reports a four percent slump from
process of deciding is whether they will continueJanuary to May this year.
their involvement in the compact pickup truckThis third option is not an unlikely decision for Ford
market.to take. It can be remembered that when
According to Mark Fields, they are still thinkingminivans produced by the car manufacturer
about whether they will continue their foray inshowed declining sales, the company discontinued
that segment. Fields though did not made publicthe production of such vehicles.
when they are expecting to reach a decision onWhen asked whether Ford will shelve the Ranger,
the fate of their entry to the compact pickupFields commented that they will be picking their
segment - the Ford Ranger.shots. If Ford decides to focus on its strength,
The Ford Ranger has been in the lineup ofthen the Ranger may be on its way out. The
FoMoCo since 1983. The compact pickup's point ofmidsize SUV segment offering from Ford is also
origin in the United States is Ford's Twin Citiesshowing signs of decline in the past years. Fields
assembly facility in Minnesota. The assemblythough said that what they are taking in from the
facility though is scheduled to be closed down assale of the Ford Explorer is still substantial which
part of Ford's Way Forward. The said program ismeans that the Explorer is safe right now - even
the turnaround plan for the Michigan carmaker.safer than the Ranger.
Since the plant is about to be closed, Ford mayBut experts pointed out that whatever Ford does
move the production of the Ranger to otherto the Ranger in North America will not affect the
plants.Rangers in Europe and Asia. This is because Ford
Another option for Ford is to take the productionalready unveiled a redesigned Ranger pickup for
of the Ford Ranger to Thailand. The said Asianthe European auto market last year. This means
country is the second biggest market for pickupthat they are still doing well in Europe and the
trucks. Producing the Ford Ranger in that countryredesign is to further increase their buyer base in
would give the company an advantage in thatthe continent.
market. A drawback though is that since ThailandThe new Ranger pickup unveiled in Europe at last
does not have a free trade agreement with theyear's Paris Auto Show is developed by Ford in
United States, exporting the Thai-produced to thecooperation with Mazda. Ford has a controlling
United States would mean that they wouldshare in the Asian manufacturer. With the tie up
produce very little profit.between them, the Ford Ranger for Europe was
Another option open for Ford is to altogetherdesigned in Japan and was manufactured in Ford's
shelve the aging compact pickup along with itsassembly facility in Thailand.
Ford Ranger parts. One reason for this option is