Published: Fri, April 27, 2018
Finance | By Gustavo Carr

Ford to drop American Sedans

Ford to drop American Sedans

The No. 2 USA automaker said it now plans to cut $25.5 billion in costs by 2022, up from $14 billion in cuts it announced last fall.

Ford F, +2.93% shifted focus on "building a winning portfolio" of vehicles, by which it meant no more of its slow-selling sedans at least for North America.

Ford isn't shy about its reasons: "declining consumer demand and product profitability" make it impractical to develop other sedans.

Ford, during its announcement Wednesday that it had a first-quarter profit of $1.7 billion, said its traditional auto lineup soon will be trimmed to just the Mustang and a new Focus Active crossover that comes out next year. 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 Mustang will remain on sale, as will the Focus Active, a model that won't debut until next year. As part of the move, Ford will be phasing out sales of traditional sedans and hatchbacks in the North American market. The company will no longer make the Fusion, Taurus, CMax hybrid compact and Fiesta subcompact in the U.S., Canada and Mexico.

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So far in 2018, Ford said, the rise in its net income is "more than explained by a lower tax rate". In March, light truck sales surged 16 percent, posting a 9.5 percent increase for the first quarter.

"Ford has been criticized by Wall Street analysts for offering few details on Mr. Hackett's strategy for the company".

American automobile giant Ford has come up with a drastic plan for North America as part of being conservative and concentrate on future developments. Could Ford of Europe be on the bubble?

Ford to let go a massive number of products including C-Max, Focus, and Fiesta, as it is focusing on the higher benefits that accompany hybrids, SUVs, and trucks. The Ford Active will be a beefy small vehicle that will have a higher profile like an SUV, but still be considered a auto. In 2017, Ford's pretax profit dropped from $10.3 billion in 2016 to $8.4 billion. He has laid out plans to introduced several new SUVs as well as a range of electric vehicles, and until now had given few details on what financial targets he planned to hit, and how.

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