The small car market in the United States has increased in importance since the gas crisis of the mid-1970s. American auto makers, who produced large automobiles which registered poor gas mileage, were surprised by imports such as Volkswagen, Nissan, Toyota and Mazda, all of whom stressed economy over luxury. Since that time, some of the luxuries formerly associated with large automobiles have been built into the smaller cars as American manufacturers have sought to build cars which can successfully compete in this lucrative and highly competitive niche. This research examines one auto maker, Ford, and two of its products which would seem to compete against each other: the Ford Escort and the Mercury Tracer.
The Escort was the best selling Ford car for eight consecutive years during the 1980s. Its sister car, the Mercury Tracer, was introduced in 1987 to lackluster results. Both cars were redesigned for the 1991 model year. The Escort featured an athletic looking line that was available in a four-door wagon, four-door hatchback or two-door hatchback. Close inspection reveals its heritage, but the car was substantially changed in appearance. The Tracer is available as a four-door wagon and a notchback. Its graceful appearance is similar to the highly successful Mercury Sable.
Mechanically, the Tracer LTS is the same car as the Escort LX-E. The ergonomics for both cars are similar, although the Tracer strives for an upscale appeal and contemporary design in its interior. This is in keeping with the brand's (Lincoln-Mercury) image as upscale. Despite their similarities, the positioning strategy for the two vehicles differs significantly. The difference is great enough that the two cars are considered to target separate niches within the small car market.
The two cars compete with other small cars, including the Saturn, Honda Civic, Nissan Sentra, Toyota Tercel, and the Hyundai Elantra. The 1993 Escort had a pr...