Business Week Fulfills "Airport Magazine" Promise, Flubs Ford Story

Oh my, where to begin. A no doubt well-intentioned David Kiley at Business Week writes in this issue about the new Ford Fiesta in ECOnetic trim. “The 65 mpg Ford the U.S. Can’t Have” is generous enough to accept that the Fiesta ECOnetic would actually get anything close to 65 mpg (we previously questioned the real-world drop for this model from MPG friendly European testing. Our pot shot guess was that it would be more like 44 in real life). Wherever the final number lands, it’s fantastic, though far less impressive for a tiny diesel engined car with low-rolling resistance tires. But attention-grabbing headlines aside, Mr. Kiley goes on to point out that Ford just “can’t afford” to sell this car in the U.S. You see, ” At prevailing exchange rates, the Fiesta ECOnetic would sell for about $25,700 in the U.S.” That’s a rookie error; direct currency conversion should never be used to calculate what one car would cost in another country. If so, a BMW 328i might cost us Yankees $52,000. While the theme is correct: the ECOnetic’s diesel engine, made in the UK, would be too pricey to import, Kiley suggests that Ford just can’t afford the $350 million to build a factory to produce it for North and South America. Perhaps that’s true, though the novelty-sized Capital One card in Mark Fields’ office might contradict it. But more likely, Alan Mullaly isn’t stupid. Americans and even South Americans are not interested in diesel cars. South America pumps millions upon millions of barrels of oil for cheap petrol out of the ground. Brazil runs on ethanol. And the US is the US. Credit where credit’s due. In this case, it’s not Ford’s bank account to blame; it’s their common sense.