HSE2

Ford Subdivides Taurus' Neighborhood

The launch of the 2003 Expedition SUV this summer marks the kickoff of a
long-term Ford strategy to retain as many Taurus and Sable owners as possible.
The mid-size Taurus ranked as the number-one-selling car from 1992 to 1996,
but has suffered from restyling neglect and competitive inroads from the likes
of Honda Accord and Toyota Camry, and now is described by Business Week
Magazine writer Kathleen Kerwin as a "rental-company staple."
Even Ford Division's new president, Stephen G. Lyons, recognizes the
Taurus' sales problems. He doesn't agree with Ford dealers' dismissive remark that
the Taurus is "dead in the water" and is understandably not willing to give
it an obituary date, but he does concede that "it's hard to sell 400,000 a
year of anything. So now we're dividing it (Taurus segment) into lots of
125,000."
To retain the millions of Taurus (and Mercury Sable) owners, Ford will
position the 2004-model Ford Five Hundred sedan, 2003-model Mercury Marauder
sedan and the 2004-model Ford CrossTrainer SUV/wagon as Taurus alternatives.
Both the Five Hundred and CrossTrainer will be built at the revamped Chicago
Taurus plant as upscale replacements for Taurus/Sable owners not quite ready to
go for the full-size, rear-drive Ford Crown Victoria or Mercury Grand Marquis.
The Marauder V-8 now reaching Mercury dealers could be offered as a Sable
owners' choice as well.
In its heyday, close to half a million Tauruses were sold annually. But
during the late 1990s, former CEO Jacques A. Nasser preferred to invest Ford's
product-development kitty in other products, such as Lincoln, Jaguar and
Mazda, leaving Taurus relatively un-updated. That left the door wide open for the
Camry and Accord to seize the U.S. sales championship in the passenger-car
derby.