Abandon Car! Ford Dropping All Passenger-Car Models Except Mustang

26 April, 2018, 12:46 | Author: Natasha Holloway
  • The all-new Ford Focus

Ford Motor Co. on Wednesday announced plans to dramatically narrow its North American sedan lineup in the coming years, as trucks and SUVs continue to dominate the US market.

Cutting its slow-selling sedans and hatchbacks will serve to free up even more capital for light truck and mobility development.

Ford plans to cut $25.5 billion in costs by 2022, up from a total of $14 billion the company announced to investors last fall.

The automaker says over the next few years, the Ford auto portfolio will transition to two vehicles: the best-selling Mustang and the all-new Focus Active crossover coming out next year.

"What we have to do is become more fit, but then on top of that have great new products", he said.

To date, the company has been testing its self-driving technology on its Fusion sedan cars, but Ford told Quartz that it plans to develop an entirely new vehicle, unlike anything it's released to date, for when it starts producing autonomous vehicles for consumers-which the company says it'll be ready to do in 2021.

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Ford has stated that nearly nine out of every 10 vehicles it sells in 2020 will be a truck or SUV, so grab your Focuses, Fusions and Fiestas while you can, ye Ford faithful. In 2017, the company's pretax profit fell to $8.4 billion from $10.3 billion.

Ford shares rose 2.6 percent to $11.40 in after-hours trading on Wednesday.

The company reported a first-quarter net profit of $1.74 billion, or 43 cents per share, up from $1.6 billion, or 40 cents per share, a year earlier. Analysts polled by FactSet expected 41 cents per share and revenue of $36.78 billion. Ford's sedans are slow sellers with profit margins that aren't as high. The company will still produce a range of SUVs and trucks, including the Escape, Explorer, Bronco, and F-150-the best-selling truck model in the US. Europe was the only other region to turn a profit for Ford.

About $4 billion of the $11.5 billion in cuts would be accomplished in 2019 and 2020, Shanks said, with the rest occurring in the subsequent two years. Its Asia Pacific business swung to a $119 million loss, from a $148 million profit a year ago.

Joe Hinrichs, president of global operations, said Ford plans to build a new product its Hermosillo plant in Mexico when it quits production of the Fusion sedan, and will also build a new battery electric vehicle in Mexico.

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