Life After Cash for Clunkers for Auto Industry
COSTELLO: Welcome back to the Most News in the Morning. Cash for Clunkers gave automakers a much-needed boost, generating nearly 700,000 vehicle sales and claims for just under $3 billion in rebates. With those cash incentives now gone though, there is concern the market could crash just as carmakers are boosting production. Ford which topped GM and Chrysler in clunkers sales is stepping up its production. So what does the future hold? Mark Fields is the Ford's executive vice president and he joins us now. Thanks for coming in so early.</s>MARK FIELDS, EXECUTIVE VICE PRESIDENT, FORD MOTOR COMPANY: Well, thanks for having me.</s>COSTELLO: So let's get this out of the way quickly, because we know that Toyotas and Hondas were the big winners really in Cash for Clunkers over domestic cars. And, you know, it's sort of the same old same old and how can you ever beat them?</s>FIELDS: Well, you know, the good news for Ford is we did very well for Cash for Clunkers. Our actual share of the clunkers was -- it ran about 1.5 points higher than our year-to-date retail market share. And we've been growing our market share for nine out of the last ten months. So, you know, the good news is we had a couple of vehicles in the top ten of the clunkers.</s>COSTELLO: You did?</s>FIELDS: And -- but I think what was really important, what you may not know is when we closed the books on August, we'll probably set some sales records -- all-time sales records for vehicles like our Ford Fusion, our Flex, and probably will record our highest F-series sales since probably October of 2006.</s>COSTELLO: Excellent. I want to read your quote now. An auto research Web site said, Cash for Clunkers distorted the market in the way that benefited the industry for four weeks. Now the payback begins." Meaning that sales will probably fall back in the basement and you'll be left in the same spot that you were before.</s>FIELDS: Well, I do think when you look at the industry, clearly there in the Cash for Clunkers period, the industry, you know, did spike. But very importantly, we always knew that the stimulus was going to be temporary and that's why when we look between now and the end of the year, clearly we'll see a selling rate that's below the selling rate that they had during "cash for clunkers." And we've adjusted our production. We've raised production in the third and fourth quarter. But very importantly, we're just replenishing our dealer inventories. We're not going to get, you know, overly ambitious. We've had a strategy to match our capacity demand, and we'll continue to do that.</s>COSTELLO: Is there a similar program that automakers can come up with, like Cash for Clunkers that might attract buyers. I mean, it was a great marketing ploy, right? I mean, I know that they were getting money too from the government. But it was a great marketing campaign. Is there anything on tap from automakers that would be similar to that?</s>FIELDS: Well, I think the most important thing that we can do at Ford to give customers, you know, great value but also instill consumer confidence and also, you know, just make them interested in being attracted to a car and a truck these days is put out the best products we can. And we have a strategy clearly focused on bringing out a full line of products, small, medium, large. Always improving the fuel economy. We have almost the industry best quality right now, technology, and very importantly, safety. So the best thing from our standpoint is to continue to bring customers great products. And, you know, it's reflected in our market share. So hopefully we'll see that going forward.</s>COSTELLO: Did it surprise you that people were so in to fuel- efficient cars?</s>FIELDS: We've been focusing on fuel efficiency for the past couple of years because it's really interesting. You know, last year when gas spiked to $4 a gallon, you know, people were very much interested in fuel efficiency. You fast forward to today, even though gas prices are down, fuel economy is still at the top of their list. So, we have a strategy that says for every vehicle that we come out with, every segment, we will be either best in class or among the leaders in fuel economy. And we're doing that with vehicles like our new Fusion.</s>COSTELLO: So do you think that reflects a real change? Because, you know, I don't know some people thought that once gas prices went down, people will return to their big pickup trucks and their SUVs. But will that eventually happen again? Or have people really changed their mindset about buying fuel efficient cars?</s>FIELDS: Well, we feel that people have really changed their minds. We think that, you know, customers are really smart. And they saw the experience last spring. They know that oil is not a renewable resource. Clearly, as we look at our business going forward, we expect gas to rise. So we -- we continue to focus on fuel economy because we think that customers are going to continue to focus on that. And it's going to be at the top of their list.</s>COSTELLO: OK. So will the Detroit Lions win a football game this season?</s>FIELDS: Let's see. I think they have a brand new coach and a couple of great, you know, draft picks and I'm very hopeful.</s>COSTELLO: Me too, because I'm a Detroit Lions fan. Thank you so much. Mark Fields from the Ford Motor Company.</s>FIELDS: Thanks, Carol.</s>COSTELLO: Appreciate it - John.</s>ROBERTS: So, again, an incredible story to tell you about this morning. Jaycee Lee Dugard, she was 11 years old when she was kidnapped. Her parents lost hope that she would ever be found alive. Well, on Wednesday, the parents got the news that she had been found. Now 29 years old, she had been held captive for 18 years in the back yard of a man in California. We'll have that story and talk with her stepfather coming up in just a couple of minutes. Twenty-seven minutes now after the hour.