I totally agree that GM has too many platforms, and wasn't saying Ford should do that...
However, I think we view the average consumer differently. I think the consumer has a segment in mind when they decide to buy a car, it's price versus other segments is largely irrelevant. I may be misquoting you, but you seem to be saying that price is the primary driving factor. I just don't see people going into dealer saying, "I want a $20,000 sedan, what can you offer me."
In price, I'll agree, the Focus and Taurus meet pretty close, but I think in style and personality, there's a major gap. I don't see a buyer looking at Stratuses and Grand Ams willing to consider either car, though the Contour was ideal.
Of course, if I had my way, the stripper line Taurus (which nobody buys anyway) would be history, leaving a nice $3000 gap ($17K-20K) for the Contour.
I do not think Ford is maximizing profits by not selling an entry-midsize car. Maybe for a few quarters, but in the long run, you want to have the cars there for when the people wish to buy them, and I'm sorry, NOBODY can time the market and have a car ready to produce to meet these needs, so you have to always have them available.
There is no reason Ford could not have the Contour as well as all their present models with the overcapacity in the automotive world, and the level of cash assets Ford has available.
To put it short, I am a Ford fan, and LOVE my SVT, but I will be stuck going somewhere else for my next car, as Ford isn't making anything I want. Yeah, maybe I can go up $10,000 to get something else, but I REALLY don't want to spend that much.
You can pillage an enemy once, but a customer is an endless resource.
James Oerichbauer - PFPC Global Fund Services
Ross: 1998 E0 SVT Contour, Toreador Red, Konis, Superchip, KKM w/heat shield, SHO-shop y-pipe and rear strut brace, no res, ScotchCal, Moda Sport 16x7.5 wheels with 205/55ZR16 Dayton Dayton tires... more