The case describes the challenges faced by Ford and other automakers in the era of decline of oil and volatile fuel prices. Ford diesel decision appears to reflect the classic thinking is limited mental models that were developed in a different world. Diesel engines account for over 50 percent of the car sales in Europe, because the fuel is very expensive there. If the fuel is extremely expensive in the United States, one would expect diesels to become more attractive. However, Ford seems to be stuck in the old mental model that says that Americans do not like diesels. Ford can not prove in a presentation PowerPoint, there is a big market for small diesel engines - mainly because there are a number of small diesel engines are available to consumers in the U.S.. But it traps them in a position in which they will never lead the industry or innovation beyond the current market conditions and technology. "Hide
by Francis Spital, David Wesley Source: Richard Ivey School of Business Foundation 20 pages. Publication Date: May 06, 2010. Prod. #: 910M40-PDF-ENG
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