Ford Motor Company (F): Why It Might Bring Back the Escort

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That makes the Escort a car that Ford Motor Company (NYSE:F) could start building without a huge upfront investment. It also makes it a car that Ford could profitably build just for China — because it still benefits from the economies of scale that come from the Focus, which is built and sold all over the world.

Volkswagen AG (ADR) (PINK:VLKAY) does that sort of thing regularly — using the “bones” of an existing model to build a new car that looks different but is really just a subtle variation for a regional market. It’s a low-cost way to create a model to cater to a local market’s tastes, while ensuring high quality.

It’s not hard to see where this is all going. It seems like a good bet that Ford will roll out the Escort in hopes of attracting those Chinese car-buyers who find the Focus just a bit too snazzy for their tastes.

The Escort will probably never be sold here, or in Europe. It probably won’t set the sales charts on fire. But it could make some new customers happy while adding a nice profit to Ford Motor Company (NYSE:F)’s bottom line in Asia.

The article Why Ford Might Bring Back the Escort originally appeared on Fool.com is written by John Rosevear.

Fool contributor John Rosevear owns shares of Ford. Follow him on Twitter at @jrosevear. The Motley Fool recommends and owns shares of Ford.

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