The Detroit automaker plans to kills production on all its sedans except Mustang and Focus; will only focus on Ford trucks and SUV’s.
Ford Taurus? Gone! Ford Fusion? See ya! Ford Five-Hundred? Is that even around anymore? Doesn’t matter, don’t care. Ford trucks and SUV’s will be the only vehicles (save for the Focus and Mustang) coming off the Detroit assembly line starting in 2019.
Ford is planning to cut the chord on all its sedan models, except for the two mentioned above, and go with the industry trend of focusing on its utility vehicles, like the Expedition, and F-Series. Plus, with the comeback of the Ranger and the Bronco, it’s no wonder cars are getting the axe.
You Can’t Stop What’s Coming
According to MarketWatch, the rise of the crossover and compact SUV fueled Ford?s decision to nix sedans from North American auto sales completely. Its slow-selling sedans weren?t helping the company?s portfolio, even though it has seen a major uptick in interest in trucks and SUV?s.
With fuel economy improvements, roomier cabins, and constantly-updated infotainment features, Ford trucks and SUV?s have been drawing attention from the average consumer. Last year Ford announced it would reallocate $7 billion to SUV?s and trucks, and shift part of its focus to bringing back classics like the Bronco and Ranger.
Focusing on the Future
By 2020, nearly 90% of the Ford lineup in North America will be made up of trucks, utility vehicles, and commercial vehicles. The company will still keep the Mustang (there would be a revolt if it cut that one) and the Focus, its most affordable vehicle for years, while also introducing the Focus Active, a new crossover out next year.
Ford reported better-than-expected sales for the first quarter, beating out Wall Street’s expectations with a 2% jump. In addition to dropping sedans from its lineup, Ford also unveiled plans to reduce capital spending by $5 billion in the next few years. Ford is essentially doing a lava lamp move right now. Ford expected to dish out about $34 billion in capital between 2019 and 2022, but that will drop to $29 billion.