Ford Motor Company (F) Announces It's Dropping Sedans In Major Product Shift

Robyn Valdez
April 27, 2018

Earlier this year, James Farley, the company's president of global markets, said Ford is "shifting from cars to utilities", which have been a bigger profit driver.

The closest vehicle to being car-like (apart from the Mustang) in that transition will be the Ford Focus Active, which is itself billed as a crossover.

The company expects that by 2020 nearly 90% of its portfolio will be trucks, utilities and commercial vehicles.

Ford has also made clear that waning consumer demand and product profitability are two reasons why it's halting investment in the next generation of sedans.

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Ford posted a net profit for its first quarter of $1.74 billion equal to 43 cents a share, up from last year's first quarter of $1.6 billion equal to 40 cents a share.

In the 11 months since then, Mr. Hackett has shuffled Ford's executive ranks and outlined plans to introduce new sport-utility vehicles and electric cars. In 2017, the company's pretax profit fell to $8.4 billion from $10.3 billion.

Speaking to reporters on Wednesday as the company reported first-quarter results, Chief Financial Officer Bob Shanks said "we have looked at every single part of the business".

With that news, Ford will phase out the slumping Fusion, Taurus, CMax and Fiesta models in the United States, Canada and Mexico.

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The decision comes as sales of passenger cars continue to decline while sales of SUVs and crossovers continue to climb.

American automobile giant Ford has come up with a drastic plan for North America as part of being conservative and concentrate on future developments. Ford's automotive revenue increased to $39 billion, exceeding the average projection for $37.2 billion in a Bloomberg survey. Up to five hybrid-electric SUVs as well as a hybrid Mustang are also projected to be on sale by the end of the decade, as new technologies increasingly break the link between a vehicle's size and performance and its efficiency.

These are some of the most common options if you rent a full-size auto at a US airport location: 2018 Ford Fusion. But since then, Ford has been slow to roll out the new sorts of SUVs that have caught favor with American consumers, and it let costs creep higher. By white space, Ford refers to vehicles that don't fit into typical categories. Sure, buyers may pay around 20 percent more, but that price hike is an unavoidable reality no matter what style of vehicle you're in as new technology continues to be added.

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