Ford will still continue to make SUVs and trucks.
Incidentally, Ford has also chose to increase hybrid & pure electric vehicle production and minimize the development & production costs for increasing its revenues as well as its market share price. "The handsome thing is I'm sure Ford is going to come out with pricing that's affordable for customers to buy an SUV, front-wheel drive or all-wheel drive and still be in a price range where you can buy a vehicle".
According to Hackett, Ford's profit margin should bottom out during the year.
Ford Motor Co., by 2020, will pare its auto lineup in North America to only the Mustang and a crossover version of the Focus due out next year. The company poured a lot of money into refreshing most of the vehicles in question since 2015, and with those expenses in the rear view mirror, Barra believes it has a competitive lineup that won't require a lot of money to update over the next few years.
New US Secretary Of State Pompeo Pushes NATO Allies On Spending
On his first stop in Saudi Arabia on Saturday, Pompeo will meet Saudi King Salman and Foreign Minister Adel al-Jubeir. Pompeo, a former Army officer who was a Republican congressman, is regarded as a loyal supporter of U.S.
In its first-quarter statement on Wednesday, the company said it will sell only two vehicle models for the US market within the "next few years" and that it will "not invest in next generations of traditional Ford sedans for North America".
"The passenger vehicle rationalization plan is just the sort of bold and decisive action we believe investors have been waiting for", Ryan Brinkman, an auto analyst at JPMorgan Chase & Co., wrote in a report Thursday, according to Bloomberg. By 2020, nearly 90 percent of Ford's North American portfolio will be pickups or sport utility and commercial vehicles.
Ford said it will not invest in next generations of traditional Ford sedans for North America because of declining consumer demand and product profitability. The company had previously expected to spend about $34 billion in capital from 2019 to 2022 and has now cut that by $5 billion, to $29 billion over the same period. "At the same time, the average age of our vehicles will drop to just more than three years". However, since the MKZ and Continental share platforms with some of the Ford cars that will be discarded, their future remains in doubt.
Ford will hedge against risk of rising pump prices by spending $11 billion to bring out 40 electrified vehicles by 2022.
And it's likely not the end of the dramatic moves coming out of Ford as it seeks to reverse its fortunes. "We're starting to understand what we need to do and making clear decisions there".