Ford Taking Reality Check on Taurus

05/13/96

Reuters reported that Ford Motor Co. is backing down on its promise that the Taurus will maintain it's ranking as the best selling car in the U.S., which it has held for the past four years. The nation's 2nd biggest carmaker has said that there is a limit to what it will spend to support sales of the car.

John Devine, Ford's chief financial officer, said, "I think we're going to act responsibly. We're going to do what it takes within certain boundary lines." Devine also announced that the Taurus was on track to sell another 30,000 plus units in May. Devine spoke to reporters after Ford's annual meeting in Kansas City, MO.

The Taurus is currently behind the Honda Accord in year-to-date sales. Between January and April of 1996, Ford sold 123,837 Taurus models, while Honda sold 124,927 Accords.

At the annual meeting, Ford's Chairman Alex Trotman delivered a positive message to more than 300 stockholders. Trotman said that Ford's profits over the next few quarters should improve as the company starts collecting on the investments it has made in new product launches over the last three quarters.

Trotman predicted that Ford's total U.S. vehicle sales will rise to 15.5 million in 1996, aided by strong spring sales. The company's previous estimates put the figure at 15.3 million.

Paul Dever -- The Auto Channel