Ford to kill Fusion, Taurus and Fiesta cars
- Author: Zachary Reyes Apr 26, 2018,
Apr 26, 2018, 22:13
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.
The full-size Taurus, midsize Fusion, small Fiesta and wagon-like C-Max will no longer be sold in North America, Ford officials said. The automaker will eliminate all but two cars from its North American lineup by that year. While SUVs and trucks generate richer profits than cars, Ford will probably lose some market share by exiting the vehicle business, she said.
Ford of North America has set a target - by 2020, over 90 per cent of its product lineup in North America would comprise trucks, SUVs and commercial vehicles.
Ford announced the improved guidance as the company reported a 9 percent increase in first-quarter net income. Expect more crossovers and SUVs, then, or cars that Ford describes as combining "the best attributes of cars and utilities", as the brand switches focus.
The deep cuts to Ford's vehicle lineup are part of the company's goal of creating "a winning portfolio and focusing on products and markets where Ford can win", the company said.
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.
In an unprecedented move that may reshape the entire auto industry, Ford will stop building all sedans and hatchbacks and shift production to crossovers and trucks.
In less than four year, these will be the only cars you can buy from Ford. Ford says it will have over a dozen hybrid and electric vehicle options available by 2022. With a plan to cut $5 billion in planned spending on his shoulders, it seems that now is the time for drastic measures.
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". The Ford Active as a beefy small vehicle that will have a higher profile like an SUV, but still be considered a auto. According to the company, SUVs will have a big impact on the market by 2020 so the manufacturer wants to jump on that bandwagon in the near future.