Ford Motor Co. plant managers and union leaders will meet Friday in Detroit to discuss rising fuel costs and the potential effect of shifting plant priorities to building more fuel-efficient vehicles.

Ford spokeswoman Anne Marie Gattari said the meeting will address the automaker’s declining sales volume amid higher prices at the pump.

“We asked the management team to come to Detroit for a business meeting so we can talk about the challenges we’re facing given oil and commodity prices,” she said.

Gattari declined to comment about reports from the Detroit News that say Ford is gearing up to announce a retooling at some of its North American truck plants to build fewer gas-guzzling pickups and sport utility vehicles and more smaller, fuel-efficient vehicles.

The changes will include bringing the European-made “Transit” van to Avon Lake’s Ohio Assembly Plant to replace the Econoline van, the newspaper reported, and retooling the Louisville Explorer plant to produce cars.

The shift would come just a month after Ford’s F-150 truck was dethroned as the country’s best-selling vehicle after 16 years, by not just one, but four cars.

Stephanie Brinley, an auto industry analyst for Michigan-based Auto Pacific, said the reality of uncontrollable oil prices is something Ford can no longer ignore.

“The problem (Ford) has right now is their capacity is geared towards trucks and SUVs,” she said. “If consumers are starting to look towards smaller vehicles to alleviate gas price concerns, Ford needs to respond and build cars that people want to buy.”

The trend of opting for more fuel efficiency is one Jim Bass, president of Mike Bass Ford in Sheffield, has also seen.

The No. 1 selling Ford dealer in Ohio for 2007, Bass said sales of F-150s are sliding.

“We’re not selling them at the same rate we did a year or two ago,” he said. “It hasn’t dropped off the map, but it’s not the same as when fuel was $2.50.”

Bass’ dealership sold 23

F-150’s in May, down from the 40 it sold during the same month a year ago.

“Anytime things change, people hesitate,” Bass said. “With the fuel pricing changing, people are skeptical and cautious. After time, I’m confident (F-150) sales will increase again.”

Ford’s new strategy hasn’t been a secret.

The company announced in late May that higher gas prices had forced it to abandon its goal of profitability in 2009, and cut its truck and SUV production through the rest of this year.

Orders for the Econoline, which is assembled by UAW 2000 workers in Avon Lake, won’t be scaled back, according to officials, and the plant has been promised a new body shop to build an additional vehicle model.

Nick Gallogly, chairman of UAW Local 2000, couldn’t be reached for comment.

The shift toward smaller, more fuel-efficient cars would follow a similar path that General Motors adopted last week when it announced it would add shifts to car plants, while closing truck and SUV plants in Moraine, Ohio; Michigan, Mexico and Canada.

Industry analyst Brinley said that truck and SUV sales will eventually increase when more fuel-efficient models become available.

Until then, she said, Ford has to do what’s best for the company, and what’s smart for the consumer.

“One of the biggest problems is that gas prices aren’t stabilizing, and buying an SUV or truck has become a scary proposition,” she said.

“Enough people walking away supports making a radical change. Ford has to do something — they can’t just stick their head in the sand.”

Contact Stephen Szucs at 329-7129 or sszucs@chroniclet.com.

 

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