Is the Ford Ranger Coming Back to the U.S.?http://www.fool.com/investing/general/2013/04/07/is-the-ford-ranger-coming-back-to-the-us.aspx Daniel Miller
April 7, 2013
There's a trend that is happening across the U.S. auto market – vehicle downsizing. Recently, consumers have more often been trading in their gas-guzzling Hummers for smaller, more fuel-efficient vehicles. If that's the case, wouldn't it hold true for the highly profitable truck segment as well? It would sure seem that way, but I have some numbers that show otherwise. There was some backlash from dealers when Ford (NYSE: F) decided to kill the smaller-sized Ranger pickup in the U.S., while at the same time boasting about its high expectations for the truck globally. Let's see what Ford's reasoning is and ask if the decision will hurt Ford's sales -- and investors' profits.
Why kill it?
In Ford's defense
The fact of the matter is, not everyone needs a Ford-tough towing machine – like the F-150 or other models. Some prefer a useful vehicle that is needed on rare occasions, yet can still offer great mile