Ford Focus quietly becomes world's best-selling car

Journal Record, The (Oklahoma City), Jul 25, 2000 by Justin Hyde Associated Press

DETROIT -- After a little over a year and a half in production, the Focus compact from Ford has become the world's best-selling car, according to Ford's own calculations.

But while Ford trumpeted the news in Europe and pointed it out to Wall Street analysts, it's kept quiet about it in the United States. The reason? Saying the Focus is a best seller might confuse the image Ford wants to give American buyers -- that the Focus is for the young and stylish.

"They're trying to sell (the Focus) more on attitude and emotion," said Wesley Brown, an analyst with Nextrend. "How do you then throw in there that it's a best seller? It clashes with the overall message."

By many measures, the Focus has been a home run for Ford. It has lured in a far younger audience than the company was able to attract with its previous candidate, the Escort. It has attracted a number of first-time buyers, who may be more inclined to buy a Ford the next time they go shopping. And it has proven to Wall Street that Ford can sell the same basic car in different markets around the world.

Ford counted about 228,000 Focuses sold from December through April in about 60 countries, about 24,000 more than the previous top- selling car, the Volkswagen Golf. Since April, Ford has increased North American production, and in June the one millionth Focus rolled off an assembly line in Cologne, Germany.

In Europe, where vehicle costs are higher and smaller cars are more popular, the Focus is billed as a family hauler.

In America, Ford has pitched the $12,000 to $15,000 Focus at buyers just barely old enough to have a driver's license. The idea is to win over the oldest members of the "echo boom" generation B the children of Baby Boomers, who are now between kindergarten and their mid-20s.

"We're talking about a generation that's 80 million people strong - - larger than the Baby Boomers," said Bob Fesmire, Focus brand manager.

The Focus is "really the gateway to Ford division and Ford Motor Co. for young people."

In Europe, Ford announced the Focus' top sales title in mid-June, but no announcement has been made in the United States.

"I think what we're focusing on is building the brand in relevant, meaningful ways with 18-to-25 year olds," Fesmire said. "Where it's appropriate to place accolades we do that, but we're always coming back in ways that are relevant for them."

Aiming for a younger audience, Ford has taken some chances with the Focus. It's built two special editions for enthusiasts -- one with a 220-watt Sony stereo system, the other with a Kona mountain bike and nylon seat covers than can be zipped off for washing. It's tried to spice up advertising, experimenting with live television commercials. And Ford Credit has set up special loans and lease deals for first-time buyers.

Brown says Ford has done a "phenomenal" job selling the Focus, and is right to target younger buyers now.

"The concern out there is that consumers are determining what brands they feel are cool at a much younger age than before and sticking with them for the rest of their life," he said. "You want to bring kids in at a younger age. It's easier to retain customers than conquest" new ones.

The results so far have hit Ford's targets, Fesmire said. About 46 percent of Focus buyers are under 35, and 24 percent are under 25. That's a far younger audience than any other Ford product, and younger than most of the competitors to the Focus can draw.

In the United States, the Focus has managed to sell without rebates -- a feat that General Motors and the Chrysler side of DaimlerChrysler have not been able to pull off with their compact cars. Part of that has been because the Focus comes with more standard features than most of its competitors.

Chris Toepel, 32, a systems administrator from suburban Baltimore, bought a Focus ZX3 hatchback in January and has spent $2,000 on customizing. His three previous cars had been Honda Civics, and Toepel was predisposed to get another.

"I still like Honda, but their prices are the main point, even though they've proven they will last," Toepel said. "For 12 grand, the Civic didn't have fog lights, a CD player, a leather steering wheel. I priced a Civic up to $16,000 for the identical features" in the Focus.

The next challenge for Ford will come in two years as the first wave of Focus customers gets ready to trade up. Brown said most Focus customers would probably not find a Mustang or Taurus attractive, and could find a Ford truck or sport utility vehicle too expensive.

"Ford's problem is they don't have a step-up vehicle right now that's as cool as a Focus," Brown said.

"They've got to bring in something above it."