Ford cuts auto offerings down to Mustang, Focus Active crossover

Apr 28, 2018, 11:02
Ford cuts auto offerings down to Mustang, Focus Active crossover

The 2019 Ford Mustang Bullitt and the 1968 Mustang from the movie "Bullitt" are shown at the North American International Auto Show on January 15, 2018.

The Ford auto portfolio in North America will transition to two vehicles in the next few years.

By not investing in next generations of any vehicle for North America except the Mustang, Ford will now anticipate till it reaches an 8 percent profit margin by 2020, two years ahead of schedule.

How Ford cuts $25 billion and invests in new product should be fascinating to watch. The only Ford-brand cars it will sell in the US will be the Mustang (a family jewel) and a single SUV-light model of the redesigned Focus hatchback called the Focus Active.

More news: Roquan Smith's Bears introduction could be the start of something big

One-third of Ford's belt-tightening will come by the end of 2020, Ford said.

Note that the streamlining of their portfolio only applies to cars like sedans.

Ford, which made its name on the Model T, will phase out production of sedans for the North American market and will instead focus its efforts on building trucks and SUVs. General Motors may soon follow suit. "They've had everything for it, except for a few little minor deals but more or less, they've had the stuff" says Glen. That factory, Barbossa says, will stay busy making the Explorer and a new SUV.

US sales of large cars have declined by 34 percent in the past 5 years, and there is "significant unmet demand" for Explorer as consumers abandon traditional sedans for SUVs, she said. As for the Fusion, it is likely to soldier on for at least two more years.

More news: Browns start round two RB run with Nick Chubb

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

"We are committed to taking the appropriate actions to drive profitable growth and maximize the returns of our business over the long term", CEO Jim Hackett said in a statement.

"By 2020, nearly 90 per cent of the Ford portfolio in North America will be trucks, utilities and commercial vehicles", the statement says. Sure doesn't look like it. Ford points out it just showed a new-ish Fusion at the NY show, so the Continental should at least have some life left. The company now builds vehicles on nine platforms that aren't as flexible.

Ford is now targeting an 8 per cent adjusted EBIT margin in 2020, two years earlier than previously projected.

More news: Amazon launches 'in-vehicle' delivery in 37 U.S. markets

Ford also observed that its average new vehicle sale prices was $36,300, outpacing the industry average for full-line OEMs. It also plans to bring a smaller, rugged SUV to market. "SUVs don't have the fuel economy penalty they once did".

Loading...
loading...
loading...
YOU MIGHT ALSO LIKE
  • Discoverie Group's (LON:DSCV) "Buy" Rating Reaffirmed at Peel Hunt

    The stock was sold at an average price of GBX 367 ($5.12), for a total value of £1,387,832.52 ($1,935,610.21). Rice Midstream Partners LP (NYSE:RMP) has declined 28.62% since April 24, 2017 and is downtrending.
    Tegra X1 vulnerability found, affects the Google Pixel C and Nvidia Shield

    Tegra X1 vulnerability found, affects the Google Pixel C and Nvidia Shield

    More games - including Mario Kart 8 Deluxe, another release based on a fan favourite - were released throughout the year. In this version, the controller can be used much like a classic system, with grips and buttons on both sides.
    Penguins over the Flyers in game 4

    Penguins over the Flyers in game 4

    They had no shots on a second-period power play, and it took them 9:21 to get their first shot in that stanza. Crosby's most recent one goal, one assist performance gives him five and four, respectively, in the series.
  • Stay Away From All Forms of Romaine Lettuce, CDC Warns

    Stay Away From All Forms of Romaine Lettuce, CDC Warns

    The CDC says people in the previous outbreak were infected with a different DNA fingerprint of E. coli O157:H7 bacteria. The FDA is continuing to investigate this outbreak and will share more information as it becomes available.
    Manchester United's Chris Smalling: FA Cup win would represent successful season

    Manchester United's Chris Smalling: FA Cup win would represent successful season

    Who will start for Manchester United when they take on Tottenham? Now we are going to share with Manchester United . Perhaps Sanchez's best display of the season came against Tottenham, but it was in an Arsenal shirt.
    Stormy Day for Trump

    Stormy Day for Trump

    I'm sorry, I'm done being bullied". "What I do for a living doesn't impact my ability to know right from wrong or tell the truth". Just when you thought you'd heard the last of Donald Trump and Tom Brady's budding bromance, the internet sucks you back in.
  • Wrestling world pays tribute to WWE legend Bruno Sammartino

    Wrestling world pays tribute to WWE legend Bruno Sammartino

    Share your Bruno Sammartino memories in the comment section below . "One of the finest men I knew, in life and in business". I'm so grateful I had the chance to meet Bruno and tell him how much he meant to my grandfather and the entire Hart family.
    Journalists, Progressives Denounce Cuomo's Decision to Restore Felon Voting Rights as Political

    Journalists, Progressives Denounce Cuomo's Decision to Restore Felon Voting Rights as Political

    Those officials will have the discretion to prevent certain offenders from regaining their rights. Andrew Cuomo , made her case as to why she's the right pick for NY in 2020.
    Telsa fans successfully crowdfund a replacement couch for billionaire Elon Musk

    Telsa fans successfully crowdfund a replacement couch for billionaire Elon Musk

    In an interview with CBS News last week, Musk mentioned the couch in his office at Tesla is, well, "not a good couch". For starters, Model 3 production (before the shutdown) stood at around 2,000 units per week earlier this month .
  • QB picks fall off after first round

    QB picks fall off after first round

    Select from these options: Breaking News, Severe Weather, School Closings, Daily Headlines and Daily Forecasts. Washington will join Steelers' star Antonio Brown , a six-time Pro Bowler, on the receiving corps.
    Jose Mourinho regrets 'little negative episodes' in the past with Arsene Wenger

    Jose Mourinho regrets 'little negative episodes' in the past with Arsene Wenger

    "I want to go peaceful and Mourinho as well, he's a great manager". "Jan is the best in the world at this time", Griezmann said. ARSENAL FULLY FOCUSED ON EUROPE "The Gunners' season has been similar to our last season [in 2016/17]".
    Romney must compete in primary for Senate seat

    Romney must compete in primary for Senate seat

    Kennedy edged Romney in the vote among convention delegates, 51 percent to 49 percent, according to The Salt Lake Tribune . The primary election will June 26, with ballots mailed to voters three weeks before election day.
popular