Go blue.

Ford has established a top secret organization designated the "Blue Team" that was meant to develop strategies to (1) compete with low-cost Korean cars, and (2) sell to the youth market. With all of its other problems, the Blue Team seemed to have become the Invisible Team. But with the early successes of Scion and Mini, the Blue Team is back and plans to create low-cost vehicles that can be sold to young buyers through a Ford dealer sub-franchise is gaining steam.

A production version of Mazda's MX-Micro Sport concept has been targeted as the first donor vehicle for the Blue Team, and will be shared by Ford, Mazda and--if approved--the new franchise. A Brazilian-built adaptation with all-wheel-drive may be used for a small SUV along the lines of the Bronco Concept, though recent rumblings suggest the Bronco may be moved upmarket and onto the next-generation Escape platform, which is based on the Mazda6. The Brazilian-sourced SUV would then be targeted at the entry-level buyer.

[ILLUSTRATION OMITTED]

If the Blue Team does as expected and follows the Scion roadmap, they will tap Ford's global offerings to bring unique vehicles to the U.S. Rumors out of Dearborn suggest the Ford Ka will be repackaged in its next iteration, adding a small hatchback, five-door and convertible to the lineup. All would be built on the Micro Sport's Mazda2/Ford Fiesta platform, and have a single-generation shelf life in the U.S. This would place Ford in the midst of the growing premium youth market, and make room for it to move the Focus upmarket when it moves back to the global C-car platform in 2008.--CAS