Ford slashes U.S. auto lineup, kills Focus, Fusion, Fiesta

Ford slashes U.S. auto lineup, kills Focus, Fusion, Fiesta

The decision to eliminate the entire sedan lineup in North America is drastic to say the least as even Fiat Chrysler Automobiles chose to keep the Chrysler 300 and Dodge Charger when it chose to focus on trucks and SUVs.

Since Ford recently refreshed its Fusion sedan for the second time, that auto will stick around the longest-at least for the next couple of years, according to company spokesman Said Deep.

The shares rose 0.5 percent to $11.17 as of 4:22 p.m.in NY, after the close of regular trading. Sedan sales across the industry have been falling off the proverbial cliff in the last two years as consumers flock to utility vehicles.

"What we have to do is become more fit, but then on top of that have great new products", he said.

More news: What is Recommendation from Analysts on Lloyds Banking Group Plc (LYG)?

Ford has announced that, in the U.S., it plans to cull its existing base of passenger cars down to just two vehicles - the Mustang, and the Focus Active.

The company said its first-quarter net income rose 9 percent due largely to a lower income tax rate.

In the first quarter of 2018, Ford's profit margin dipped to 5.2pc from 6.4pc a year earlier, as it was squeezed by higher aluminium and steel prices. In fact, it looks as though the Mustang and an upcoming Focus Active crossover are the only cars that will survive the cuts. We will have to make choices around how we disposition those businesses going forward.

During the company's first-quarter financials conference call on Wednesday, Ford presumably just said, ah, the hell with it, and more or less confirmed that it's dropping the axe on four of its cars.

More news: Israel says 15 Hamas operatives arrested in West Bank raid

The move is bad news for sedans, but good news for trucks and crossovers.

Shanks suggested that Ford could reduce investment in certain geographic regions or exit them completely if it did not see adequate returns on the horizon.

Ford will cut $5 billion from capital spending from 2019 to 2022, reducing it from $34 billion to $29 billion.

But the market in the U.S. has shifted to larger vehicles that consumers perceive as safer; Ford's decision to pare down their model offering to trucks and sports cars appears to be servicing the demand it sees directly ahead of it.

More news: Rahul Gandhi assails PM; Shah calls him 'failed leader'

Shanks wouldn't say if employees would be cut but said nothing is off the table. The entire team is focused on improving the operational fitness of our business, as well as meeting and exceeding our accelerated 2020 target of 8 percent margin and ROIC in the high teens.

Related Articles

  • Woman kills husband's mistress then turns gun on herself, police say

    Woman kills husband's mistress then turns gun on herself, police say

    Later, he was a creative director at the University of DE and reportedly worked there with Chapman for a time. She took to Facebook to share how much she was enjoying her new job less than two hours before her death.
    2 officers, 1 civilian shot in Texas

    2 officers, 1 civilian shot in Texas

    The male officer, who was shot in the back of the head, has succumbed to his injuries, according to a local NBC affiliate. A suspect is in custody after two Dallas police officers were critically wounded in a shooting outside a hardware store.
    Salah for €42m & the 15 most undervalued players in history

    Salah for €42m & the 15 most undervalued players in history

    Currently, Liverpool is third in the Premier League , behind Manchester City and Manchester United . Salah was named PFA Player of the Year at the ceremony in London on Sunday night.
  • Trump says Mnuchin, USTR to travel to China for trade talks

    Trump says Mnuchin, USTR to travel to China for trade talks

    While the meeting with Yi did not focus on trade with China , Mnuchin said he remains "cautiously optimistic" about the issue. Christopher Balding, associate professor at the HSBC Business School in Shenzhen, said: "I wouldn't read too much into it".
    Cops Try Unlocking Phone With Dead Man's Finger

    Cops Try Unlocking Phone With Dead Man's Finger

    Mr Phillip was killed when officers tried to arrest him on March 23 after smelling marijuana in his auto . In other words, attempting to use a dead person's fingerprint to unlock a smartphone might be legal now .
    Israel Air Force opts out of USA  drill as Iranian threat looms

    Israel Air Force opts out of USA drill as Iranian threat looms

    Iran's Fars News Agency published photographs and names of three Revolutionary Guards personnel who it alleged had been killed in the strikes.
  • Chelsea, Arsenal target Ancelotti handed Italy job

    Chelsea, Arsenal target Ancelotti handed Italy job

    We couldn't talk about the programme and the financial side. "Since we are obliged to respect the rules, we spoke about other things".
    Spotify makes improvements to its ad-supported experience

    Spotify makes improvements to its ad-supported experience

    Now that Spotify is officially a public company , it has to continually make more money year-over-year to appease shareholders. While the basic goal of the app remains the same, it has undergone various changes which would benefit the free subscriber.
    Congress-Led Impeachment notice step against CJI Dipak Misra gets Rejected

    Congress-Led Impeachment notice step against CJI Dipak Misra gets Rejected

    It showed in the January 12 press conference of four judges of Supreme Court. "I refuse to admit the Notice of Motion", he said. If the opposition parties at all proceed to Supreme Court, Congress may end up facing bigger embarrassment in near future.
  • Sensex gains 147 points, Nifty reclaims 10600-mark

    Sensex gains 147 points, Nifty reclaims 10600-mark

    Bharti Airtel also ended 0.61 per cent higher while IDFC Bank dropped 1.24 per cent ahead of their Q4 results. Wall Street shares skidded overnight, with the S&P 500 falling 1.34 percent, the most in two-and-a-half weeks.
    Allison Mack Released On $5 Million Bond

    Allison Mack Released On $5 Million Bond

    Raniere was arrested last month on federal charges of sex trafficking , sex-trafficking conspiracy and forced labor conspiracy. Mack repeatedly reached out to " Harry Potter " star Emma Watson in 2016, asking her chat about joining a "women's movement".
    Asus Zenfone Max Pro M1 Launched; Priced in India at Rs 10999

    Asus Zenfone Max Pro M1 Launched; Priced in India at Rs 10999

    The 5000mAh battery on the Zenfone Max Pro coupled with the power efficient Snapdragon 636 SoC , the battery life was exceptional. Connectivity options includes- Wi-Fi 802.11 a/b/g/n, Bluetooth 4.2, Micro-USB, Location, 3.5mm audio-jack, and 4G VoLTE.