WHEN SPORT utility vehicle owners were shelling out $50 this spring to fill their gas tanks, a wave of anxiety permeated the Ford Motor Co.'s Dearborn, Mich., headquarters. Top executives worried that if fuel prices remained high or continued to climb, SUV sales would plummet.
A drop in SUV sales would have been devastating to Ford's bottom line. The company sells about 800,000 annually -- one-fifth the automobile manufacturer's domestic sales and the most profitable product it offers. Half of Ford's profits come from selling gas-guzzlers -- SUVs, minivans and pickup trucks.
The announcement that Ford will voluntarily increase the fuel economy of its SUV vehicles by 25 percent over the next five years is a remarkable turnabout. Ford, like the rest of the auto industry, has resisted nearly all efforts by the federal government to increase mileage standards. The auto-makers maintained that they could not build fuel-efficient SUVs and light trucks and still make money.
