If you knew that there was a car with fuel efficiency ratings of 65 mpg, would you want to buy it? Many of us who are troubled by the high price of gasoline may want this alternative to their gas guzzler.
Well, truth is that Ford has a car, the Fiesta ECOnetic, that achieves 65 mpg. But the company can’t sell it in the U.S. because it costs too much to import.
The engines for the car run on diesel and are constructed in Great Britain where labor costs are high. Moreover, the exchange rate between the pound and the dollar favors the pound. This makes it tough for Ford to charge a price that buyers will go for and yet still make a profit.
Ford will be manufacturing a Fiesta with a gasoline engine in Mexico for sale in the U.S. But Ford can’t manufacture diesel engines in Mexico because construction of such a plant could cost at least $350 million and Ford is not in a position now to spend that kind of money.
via Business Week