Ford is changing the way buyers of its popular Explorer brand will look at the SUV, betting that buyers will pay more for less. Traditionally the Explorer has offered a V-8 as the standard base engine. But for 2011 Ford is making a V-6 engine as standard and also will be offering a 4 banger as an alternative. But what will make this 4 cylinder engine different is that it will actually cost more than the standard V-6.

In a recent article it also stated that:

Buyers of the Explorer will be willing to make those trade- offs for better fuel economy, Holland said. Ford says poor gas mileage is the No. 1 reason shoppers reject the Explorer, which saw sales fall 88 percent during the past decade, from 445,157 in 2000 to 52,190 last year.

“The impact of rising gas prices has really stuck with people,” Holland said. “People now buy more expensive light bulbs to be more efficient. We’re moving to a point where people make the choice to be more responsible.”

“Fuel economy is the core truth we have to get at,” Farley said at a media briefing on the Explorer July 20. Many of the 140,000 Explorer owners who trade in their SUV annually are “disappointed and want more on fuel economy.”

Ford expects to sell more of the new model, especially with optional equipment such as the 4-cylinder engine, Farley said, while declining to reveal a sales goal. Analysts estimate annual sales for the new Explorer may top 100,000 units.

“What’s more important than the number we sell is that people see the value and that they’re willing to buy the better, more highly equipped versions,” Farley said. “That’s the key for us.”

It should be interesting to see just how well the new Explorer sells. I have seen the Ford Escape vehicle on the road, which would seem to offer more bang for the buck. The Escape also comes with a 4 cylinder power-plant that does not command a premium price.

What do you think?

Comments welcome.

Source – Bloomberg