Ford to stop manufacturing most cars, focusing on trucks, SUVs
- Author: Zachary Reyes Apr 28, 2018,
Apr 28, 2018, 18:33
"It's pretty hard to make that prediction today based on volumes", Dias said from Washington, D.C., where trade talks were being held between Canada, the United States and Mexico.
"We'll restructure as necessary and we'll be decisive", Hackett said.
"This is part of a strategy of "(b) uilding a winning portfolio and focusing on products and markets where Ford can win", a first-quarter earnings release stated Wednesday. "We will also be building an all-new Explorer at Chicago Assembly". We, though, didn't expect Ford to implement the changes so quickly.
Executives say Ford could also exit or restructure low-performing areas of its business, in an aggressive effort to save costs.
Specifically, Ford said that by 2020 nearly 90% of the Ford portfolio in North America will be trucks, SUVs and commercial vehicles.
It will be the first time the Chicago Assembly Plant has not produced any cars since World War II.
While battery-powered vehicles have been money losers thus far, Ford's plans aren't completely inconsistent with the global march toward electrification that's shaking up the auto industry. "We will modernize and retool".
However, the company had not made this official until recently when it announced that it would be doing away with the traditional hatchbacks and sedans for the North American market.
"There are a number of factors", he said. Several factors are involved in this transition, a couple of which being that trucks and SUVs are often more fuel efficient and better in terms of safety ratings and ride quality.
Ford will hedge against risk of rising pump prices by spending $11 billion to bring out 40 electrified cars by 2022.
"It's a market-driven business", he said, "so what the consumer wants is what they'll have to build".
The decision comes as sales of passenger cars continue to decline while sales of SUVs and crossovers continue to climb.
The Chicago Assembly Plant made just 2,569 Tauruses last month, down 36.3 percent from the same time a year ago. While enthusiasts will moan about the potential loss of the RS and ST variants of Ford hatches, it seems that their buying power isn't quite enough to make up for the lagging mid-size and full-size sedan sales.