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Ford Can Survive, by Becoming More Japanese

By Austin Smith and Jeremy Phillips - Apr 14, 2013 at 1:00PM

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Ford has to adapt or die.

Ford (F 3.68%) is in between a rock and a hard place with the new era of car buyers who are demanding ever more fuel0efficient engines. Ford has historically been a manufacturer of big, heavy trucks and SUVs with fuel-hungry engines. That's been great for shareholders, as trucks and SUVs are higher-profit-margin vehicles, but now Ford has to adapt or die. 

Meanwhile, Japanese automakers have done very well in the new age of demand for miserly fuel economy. According to cars.com, six of the top 10 vehicles sold in the U.S. in 2012 were by Japanese automakers, and the three vehicles that grew sales the fastest on the list were all high-mpg sedans. 

Fortunately for investors, Ford is inventing quickly, and its new EcoBoost engine already comprises a large percentage of F-150 sales.

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