Loss Leading 101: Ford's FUBAR Focus

Call us na ve. We've always joked that some car models were loss leaders for carmakers' fleets — meaning car companies take a loss on their sale to stay present in the segment, attract an entry customer who will (might) trade up or add to their finance arms' bottom line. But we never suspected something this completely batshit mad (in the strictest fiduciary sense, of course) was in play over at Ford. According to an article in BusinessWeek:

In May, an otherwise dismal month for Detroit, Ford Motor Co. (F ) sold more than 20,000 Focus subcompacts, the fuel sipper's best showing in nine months. That's great news, right? Not really. Ford lost an estimated $4,000 to $5,000 on each Focus it sold.

Now that is a Bold Move.

Blurred Focus [BusinessWeek]

Related:
More on the Ford Focus [internal]