Ford to Cease Production of Sedans as it Looks to Boost Profits

Adjust Comment Print

Ford said it would "not invest in next generations of traditional Ford sedans for North America", and instead would be transitioning towards only selling two models of cars in the region - the Mustang and a new Focus Active crossover, which is coming out next year.

Ford has announced that, in the United States, it plans to cull its existing base of passenger cars down to just two vehicles - the Mustang, and the Focus Active.

Ford says it is also exploring new "white space" vehicle silhouettes that combine attributes of cars and utilities, such as higher ride height, space and versatility.

"Everything will be on the table", Shanks said.

"We're starting to understand what we need to do and making clear decisions there", Hackett said.

Ford reported first quarter net income of $1.7 billion in 2018 and a 7 percent revenue increase from 2017.

Ford Motor Co (NYSE:F) Sentiment Change Report
Ford to Cease Production of Sedans as it Looks to Boost Profits

Ford will, however, continue to offer its full gamut of trucks, SUVs and crossovers. We will have to make choices around how we disposition those businesses going forward. It identified Lincoln as a low-performing area but Shanks said sales are growing and the brand is not in jeopardy.

President Donald Trump's announcement to impose a tariff of 25% on steel and 10% on aluminum comes at a tough time for USA automakers, which have faced flattening sales in recent months.

Ford has since also confirmed that only the next-generation Focus Active will arrive stateside, meaning the sedan and hatchback versions of the vehicle will not make their way to the USA market. The company previously predicted $14 billion in cuts by 2022.

The No. 2 USA automaker said it now plans to cut $25.5 billion in costs by 2022, up from a total of $14 billion the company announced to investors last fall. Almost half of the cuts would be in sales and marketing - through incentive optimization, reduced advertising and other actions - with the rest coming from engineering and product development, material costs, manufacturing and information technology, in that order. "I don't think they're done yet".

The decision, which Hackett said was due to declining demand and profitability, means Ford will no longer sell the Fusion midsize auto, Taurus large vehicle, CMax hybrid compact and Fiesta subcompact in the U.S., Canada and Mexico.

The announcement was made with little fanfare as it was tucked away in the company's first quarter financial results.

Amazon hints at the Fire TV Cube
Other Indian-specific features such as ordering food from Zomato, booking an Ola cab etc. can be done through the Echo Spot . The company has also set up special kiosks in Bangalore, Mumbai and across other 350 offline retail outlets in India.