Ford to begin phasing out sedans

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Ford announced in their recent quarterly call that their future vehicle lineup will consist of only the best-selling Mustang, and a new Focus Active (which will be a small crossover).

Ford will still continue to make SUVs and trucks.

Michelle Krebs, executive analyst at AutoTrader.com, said Ford's move is no shock.

Ford also plans to optimize digital marketing and offer greater discounts on vehicles, as well as putting multiple vehicles on five flexible global architectures in the next few years. The fuel-price shock that left Detroit on its knees during the Great Recession didn't last, and American consumers have gone right back to buying sport utility vehicles and big trucks like the bread-and-butter F-Series.


"The segments are still significant", GM CEO Mary Barra told analysts on an earnings call Thursday. With their emphasis on outdoorsy Jeeps that sit high above the road, Fiat-Chrysler has invested heavily on SUVs. "And it has been pushed by the automakers primarily because bigger equals more profit".

In a turning tide of events witnessed across the automotive sector, the Ford Motor Company has sketched a plan for cutting operational costs & augmenting its revenue by halting the sale of sedans in North America.

In mid-morning trading, shares of Ford were up around 2.5%, at US$11.40.

While the decision to entirely eliminate so many cars and reduce the Focus family to a single model is no doubt controversial, The New York Times has learned from Ford that the automaker is losing money on the Fusion, Focus, and Fiesta.


On Wednesday the automaker confirmed rumors that it will phase out traditional sedan vehicles in North America over the next few years and shift focus on SUVs and trucks. The company's battery electric vehicle rollout starts in 2020 with a performance utility, and it will bring 16 battery-electric vehicles to market by 2022.

The Mustang will be the only model which will be spared from Ford's slashing of its passenger-car lineup in North America. As for the Fusion, it is likely to soldier on for at least two more years.

First-quarter net income was $1.74 billion, or 43 cents per share. Electrification would mean that those vehicles will be converted to mild hybrids, plug-in hybrids, or battery-electric powertrains.

The Fusion is expected to remain in its refreshed form for an as-yet-undetermined duration, but its next-generation build program in North America was officially scrapped late in 2017.


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