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Ford Fiesta

In: Business and Management

Submitted By chanice1992
Words 791
Pages 4
Launch of the Ford Fiesta Diesel: The World's Most Efficient Car

In this case, the issue is that Ford launched an engine that use Diesel, the car itself has many potentials (lowest CO2) and follows all emission‘s standards and regulations.
It encounter a positive reaction in Europe (Bestselling in Britain and sales has gone up by 40% the previous year) and Asia but it is not the case in the USA.
Indeed, consumers still have a bad image of Diesel, in their mind Diesel is noisy, smelly and smoky.
This bad perception of the fuel negatively affected the sales of one of the most fuel efficient car especially during an essential economic deterioration.
Therefore Ford decided not to launch the car in the USA, but they argue that it it’s due to the cost of exporting from Europe but also the uncertain demand.

Ford and also other carmakers are facing some challenges due to the elusive price of fuel but also the oil decline.
Ford is mostly affected by people’s perception of Diesel, but the fuel represent 50% of sales in Europe due to its expensive price.
Carmakers has the choice between Gasoline engines, Diesel engines or Hybrid Engines.

Gasoline engine, are not the most wanted, indeed people prefer electric cars .But due to oil Embargo in 1973, it increase the price of gasoline thus made it more attractive .CAFE installed some regulations.
Oil price decrease enabling carmakers to build better car and meet CAFÉ regulations but at the crises carmakers realize that it was time to find alternatives to oil.

Diesel was the fuel of choice, provide more power even for big cars, but in Europe and Asia due to taxes it became expensive. Consumer prefer small cars with diesel to lower their fuel expenditure. In USA people has bad perception of the fuel, in 2006 they start producing clean diesel with an extra cost of 5-8$ per gallon. But due to strict emission standard,...

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