Ford to stop selling sedans in North America by 2020

Ford to stop selling sedans in North America by 2020

One of North America's largest vehicle makers is shrinking its product line to save money and stay competitive in the auto market, company officials said.

The company has found another $11.5 billion in cost cuts and efficiencies, bringing the total to $25.5 billion expected by 2022, Chief Financial Officer Bob Shanks told reporters.

"We're going to feed the healthy parts of our business and deal decisively with the areas that destroy value", Hackett said during a conference call. Fiat Chrysler Automobiles moved away from sedan over a year ago, while General Motors has remained committed but has dialed back production.

Ford says it has found billions more in cost efficiencies than promised earlier, including plans to cut all but two auto models in North America as it moves to become leaner to compete in a fast-changing global marketplace.

The lion's share of the automaker's quarterly profit was driven by high-margin pickup trucks and SUVs in North America.

Ford is pretty serious about trimming its U.S. lineup in the coming years, and that's bad news for anything that isn't a truck or SUV.

It has yet to confirm which of those will come to Europe, but the company's Q1 earnings (before tax and interest) was down by $90m (£64.5m, -43.1%) across the region, said to be due to the weaker United Kingdom market, lower diesel mix and exchange rates.

"Everything is on the table", Shanks said in a statement to The Detroit News.


In North America, Ford's largest and most important market/region, pretax profit was $1.9 billion, down $200 million from a year earlier.

What's left will be nothing but profit centers, or at least potential profits, as the company focuses on what consumers are really buying these days: trucks, sport-utilities and crossovers.

"For Ford, doubling down on trucks and SUVs could be just what the brand needs", Jessica Caldwell, an analyst for Edmunds.com, said in an email.

Ford has stated that nearly nine out of every 10 vehicles it sells in 2020 will be a truck or SUV, so grab your Focuses, Fusions and Fiestas while you can, ye Ford faithful.

"It's not that the market has permanently given up on good news ever happening at Ford", said David Whiston, an analyst with Morningstar Inc. who recently lowered his rating on the stock to the equivalent of a hold. We can expect more such vehicles from them in the future.

"The hand-wringing that has been around in our business is gone", he said.

In other words? Passenger cars aren't making money, and crossovers/trucks are.

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