EDITOR'S NOTE: This article has been amended to note that Toyota's first vehicle in the United States was the Corona.
Ford Motor Co. is making a big mistake reducing its Ford brand car offerings to just the Mustang and a version of the Focus.
Here's why: Such a vacuum opens the door to more competitors, such as Chinese automakers, who will see an opening in the market and rush in to fill it.
There has always been – and always will be – a market for small, fuel-efficient entry-level cars. Though they might not be hugely profitable, they are necessary in Ford's showroom. History shows us why. In the mid-'60s, Toyota got rolling in the U.S. with the Corona, a small, fuel-efficient and inexpensive high-quality compact.
Ford, General Motors and Chrysler had nothing like the Corona. Look how that one seed grew. Toyota and Lexus are a colossus in the United States. More recently, Hyundai and Kia started off in the U.S. with small, inexpensive cars and used them to grow businesses that now compete in nearly all market segments.