This just comes to show American car companies still don't get it. They don't want to build better and refresh the platform, etc because of cost. Yet they spending more $$ (~$100mil) in advertisement and even more on rebates. I don't think Japanese car companies are advertising that much and definitely does not offer as much rebate. How clueless can these management people be? Build a nice peppy car with good handling and quality interior along w/ good exterior and the car will sell itself.

 

Ive said it before and Ill say it again. The domestics SORELY need to bring their Aussie and Euro lineups over here...

 

I think the biggest difference between American car companies and foreign ones (particularly Japanese and German) are the way they spend their money. It seems as if American car companies focus on cost-cutting measures such as using cheap interior materials, less durable parts, and cutting R&D and manufacturing costs. While it may appear they are saving money, in the long run they're losing more b/c they're losing customers and sales and have to rely on huge rebates to move their vehicles.

Most Japanese and German manufacturers don't play the price game, but instead focus on making the best automobile they can at a target price. They keep the priorities of safety, value, durability, performance, and style in proportion, without overly sacrificing in one area. And I think that anyone can see its paid off.

While Ford probably doesn't make much money on the Focus cars it sells domestically, it's going to end up losing a lot more I believe by soldiering on with a 5 yr. old car when everyone else is updating their compacts. They're going to lose market share and have to rely on even more incentives in the long run. This is truly a bad move by Ford.