Ford has announced that its small car, the Focus, will be revised and upgraded for 2008. Designed initially for Europe, the model has not been completely re-designed for America before and the idea is that, by offering more features for less money, sales will take off again after sliding recently.

The small car segment of the US market has not been a money earner for manufacturers in the past but the hope is that increasing gas prices will re-vitalize sales of cars like the Focus. Ford have not been doing well recently and are looking for ways to improve their position.

Having had experience of the Focus, I must admit to a wry smile and the thought that any improvement to it would be a step in the right direction. Just do a search for problems with it and see what you come up with…

Ford Motor Company now reports its losses in the second quarter at $254M, double the figure they originally reported, $123M.

Ford has been struggling. In January they announced cutbacks in jobs and closings of facilities. On top of that, its foreign motor group continues to lose money where Ford had hoped to begin to see profit. Jaguar, especially, has been disappointing in sales.

Is it coincidental that the other big American car manufacturer, GM, has also been having its financial woes?

I think Americans want to see a turnaround for both Ford and GM. Americans want to buy domestic and when the product is superior and reliable, they will. Manufacturers need to re-tune their approach to the American market. Ford’s Focus, for instance, immediately popular and gaining good reviews, was plagued by recalls. Recently, Ford has had to recall 1.2 million trucks and SUVs due to fire hazards.

In July, for the first time, Toyota outsold both Ford and GM. Rising fuel prices are probably the key to the increase in Toyota sales in the US.

Ford announced on Wednesday the hiring of Kenneth Leet, former Goldman Sachs banker to be a strategic advisor to Ford CEO Bill Ford.