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

It was that thinking that led the Ford Motor announce Wednesday that it is shedding most of its North American vehicle lineup over the next four years to stay competitive in a rapidly changing industry. Within a few years, Ford will offer only two cars in the United States: the Mustang sports auto and a new Focus variant with the shape of an SUV, Hackett said.

So far in 2018, Ford said, the rise in its net income is "more than explained by a lower tax rate".

Ford made $1.74 billion from January through March, or 43 cents per share, compared with $1.59 billion, or 40 cents per share a year ago.

For example, a Fusion starts a little above $22,000 and gets 21 miles per gallon in the city and 32 miles per gallon on the highway, Ford's website says.

Speaking 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.We are driven to turn this business around'.

By not investing in next generations of any vehicle for North America except the Mustang, Ford anticipates it'll reach an 8 percent profit margin by 2020, two years ahead of schedule. The company will cut $5 billion from capital spending from 2019 to 2022, meaning it will only have $29 billion instead of $34 billion to burn.

In a historic move, Ford announced Wednesday it would phase out production of all small cars and sedans in the "next few years", keeping only the Mustang and the upcoming Focus Active - which it characterizes as a crossover.

"We have seen the trend go where Ford and even preowned sales are gearing towards the truck and SUV more so than the sedan". Which means outside of trucks, utility and commercial vehicles (which Ford reckons will take up 90 per cent of Ford's North American portfolio by 2020), there'll be just two actual cars in Ford USA's range. But truth be told, the aging USA models already were on life support as Ford spent money on other priorities. Hackett says the multi-year transition will leave the iconic Mustang and a redesigned Focus crossover as Ford's remaining cars.

Ford is counting on its planned cost reductions to reinvigorate its North American operations. At the same time, it will begin building a new vehicle - the 2020 Lincoln Aviator SUV - which, along with an all-new Ford Explorer and police version of the SUV, should keep the plant in full swing, Ford spokeswoman Kelli Felker said Thursday. Ford also plans to bring 16 battery-electric vehicles to market by 2022.

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