Ford Ka to Make an Early Run on the Minicar Market in Western Europe

09/12/96

Reuters has reported that Ford Motor Company unveiled a new minicar Wednesday. The Ford Ka measures seven inches shorter than Ford's current smallest car, the fast-selling Fiesta. The new car's name means "vitality" in ancient Egyptian. The Ka's public debut will occur at the Paris car show early next month. It'll go on sale in Europe later in October. Ford did not reveal the capital cost of the Ka project, but did say that the Ka's home plant in Valencia, Spain cost $201 million to build.

McGraw Hill's automotive researcher DRI says the minicar market currently amounts to about 500,000 sales a year in western Europe. Its dominated by Italy's Fiat SpA with the Cinquecento and France's Renault with the Twingo.

Ford's Ka may not be the first minicar in the field, but it has managed to leap-frog over its biggest competitors, like Germany's Volkswagen AG and Mercedes-Benz, and General Motors Corp's Opel subsidiary.

DRI predicted that European car manufacturers will make up to one million minicars a year over the next five years, with Ford making up to 200,000 Kas a year: "All the big car manufacturers are heading into this Twingo type segment," said DRI's Arthur Maher.

"VW will have a cutback Polo in one to two years, Mercedes has the more expensive `A` class and the cheaper Smart car, and GM is looking at a sub-Corsa," said Maher.

Maher said to expect minicar prices to be "affordable but not cheap."

"Historically, this segment of the market has been for first time ownership, like the Fiat Panda. But now the manufacturers are hoping they can appeal to families which already have cars. This will supplement the executive saloon, the four wheel drive vehicle, and will be used for shopping, taking the kids to school, and city travel," said Maher.

Ford said the Ka will not be a bare bones model, but rather will have the space, features, and equipment normally associated with larger cars. The Ka, powered by a 1.3 liter engine, was designed and developed in just over two years. Ford has not yet announced the car's price.

Paul Dever -- The Auto Channel