Ford Cuts Mondeo and Explorer Prices in Japan Despite Strong Dollar

12/05/96

Nikkei English News reported that Ford Motor Co., after having revised its 1996 Japanese sales forecast down from 35,000 vehicles to 22,000 vehicles, announced last week that it would cut its Japanese prices for Mondeo passenger cars and Explorer sports-utility vehicles. The company will reduce Mondeo prices by 4% and Explorer prices by 6%. Ford is emphasizing market share over short term profits by cutting prices in spite of the U.S. dollar's recent gains against the Japanese yen.

Ford set its Japanese sales target for the European-made Mondeo sedans and wagons at 1,000 vehicles per month. It has targeted 500 sales per month for the U.S.-made Explorers. The Mondeos and Explorers for sale in Japan are all right-hand-drive vehicles; engine displacement for the Mondeo models range from 1,800 cc to 2,500 cc, while displacement on the Explorer models is 4,000 cc.

Paul Dever -- The Auto Channel