Ford's loss could mean their customers' long-term gain

It's looking to be a long day for Ford, which just reported an $8.7 million second-quarter loss.

"Because of deteriorating economic conditions, demand has declined dramatically, especially in North America," said Ford CEO Alan Mulally in a cnn.com report.

The report is no surprise to most American consumers, who have been feeling the heat of increased gas prices all summer. But this loss for Ford could be their customers' gain.

Mulally has been hinting for quite some time now that Ford will shift its focus to smaller, more fuel-efficient vehicles. By December of this year, three American plants currently used to manufacture large trucks and SUVs will be converted to manufacture small cars. And during a time when demand for hybrids and fuel-friendly cars is high, but supply is low, this is bound to please loyal Ford customers.

Ford will also increase production of two small utility vehicles, the Ford Escape and Mercury Mariner. Both the Escape and Mariner have hybrid models available, and increased production means that dealers like us might have an easier time finding these high-demand vehicles for our customers.

Either way, Ford is certainly not alone in feeling the pressure from concerned consumers. Many other large auto makers are reporting decreased sales, and all of them are citing the sluggish economy and high price of oil.

We've also found an interesting article from Automotive News about Ford's plan for its Mercury line. Looks like they'll be using the brand as a pinnacle for their transition to smaller vehicles. Check out the article here.