Ford plans $11.5 billion in extra cuts, killing several USA sedans

27 April, 2018, 00:38 | Author: Carmen Reese
  • 2018 Ford Mustang facelift

Ford plans to shift $7.0 billion in investment capital from its auto business over to SUVs, estimating that SUVs could make up as much as half of the industry's USA market by 2020. Which means that in the very near future, the only Ford "cars" you'll be able to buy there will be the Mustang and the incoming Focus Active.

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. By 2020, nearly 90 percent of the Ford portfolio in North America will be trucks, SUVs and commercial vehicles, including electrified versions, Felker said.

"We will refresh our entire lineup of traditional crossovers and SUVs that everyone knows, like Explorer and Escape", said Jim Farley, Ford's president of global markets, according to USA Today.

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

More news: Anthony Joshua v Deontay Wilder: WBC champion makes $50m offer for fight

The company reported a first-quarter net profit of $1.74 billion, or 43 cents per share, up from $1.6 billion, or 40 cents per share, a year earlier. Profits before taxes fell to $2.2 billion from $2.5 billion.

Ford had already announced that the new Fiesta ST would not be crossing the pond due to a lack of interest in the segment, but the main justification is, understandably, profit. Europe was the only region to turn a profit for Ford. By 2021, Ford projects it will surpass Toyota and become the leader in the USA hybrid vehicles market in terms of sales, in part thanks to the hybrid F-150 and Mustang. Move comes as no surprise Michelle Krebs, executive analyst at AutoTrader.com, said Ford's move is no shock, reports the Detroit Free Press. Ford confirms that it is taking appropriate moves to drive profitable growth and maximise returns on a long term. But since then, Ford has been slow to roll out the new sorts of SUVs that have caught favor with American consumers, and it let costs creep higher. He has laid out plans to introduced several new SUVs as well as a range of electric vehicles, and until now had given few details on what financial targets he planned to hit, and how.

Changes are afoot for Ford Motor Company (NYSE:F), at least in North America. To get there, the automaker is ready to take steps including forsaking certain categories and markets.

Recommended:



Popular

Mueller Protection Bill Passes Judiciary Committee (Audio)
But Cornyn, the number two Republican in the senate, made a stark prediction "This bill will not be taken up on the Senate floor". Two Republicans and two Democrats introduced the bill earlier this month as Trump ramped up criticism of the special counsel.

Arizona teacher walkout: Protests, preparations underway for teacher rally
Organizers have billed the walkout as #REDforED, with participants and supporters wearing red clothes as a show of solidarity. She said she had a "wake-up call" for school funding when she learned about a teacher paying out of pocket for a field trip.

Comcast's $31 Billion Bid for Sky Could Crush Rupert Murdoch's Dreams
Fox, which already has a 39 percent stake in Sky, first announced its 10.75 pound per share cash offer in December 2016. The offer also establishes Comcast's intent to maintain Sky's United Kingdom headquarters at its Osterly campus.

Wife shot husband's mistress dead then killed herself after discovering their affair
Jennair Gerardot didn't drive to Chapman's home and it wasn't immediately clear how she got there, police said. When police arrived, Mark Gerardot was outside the house saying, "My wife may be inside".

Wenger says timing of his Arsenal departure not his decision
He also refused to answer rumours of former Barcelona boss Luis Enrique replacing him. I just want to do as well as I can", said Wenger.

Slate Belt musician who wrote 'Schoolhouse Rock' songs is dead at 94
DOROUGH served as the Music Director of a 40th anniversary DVD edition of the entire, five-subject series. He performed all the multiplication songs, and collaborated on the history, science, and grammar songs.

Amazon Echo Spot launched in India, a smart speaker with circular display
The convenience of Drop In is available on all Echo devices in India including the Echo Spot , Echo Dot , Echo and Echo Plus . While Google Home and Home Mini match Echo and Echo Dot , the Echo Spot will stand apart as an unique offering.

EPL: Why Ancelotti might not replace Wenger at Arsenal
We just had a bit of banter about the opportunity but we didn't talk about plans or the economic aspects. They believe Ancelotti is the right man to take their squad forward for the Euros and next World Cup.

Suspect in Dallas Shooting Injuring Three People Arrested by Police
In a tweet about the shooting Tuesday evening, the Dallas Police Department said the officers were critically wounded. Hall said the off-duty officer was working at the store and that she called for assistance in making an arrest.

Equity indices close higher, RIL top gainer
However, the gains were capped by selling pressure in metals, IT, teck, power, consumer durables and PSU stocks. On Tuesday, Sensex rallied 165.87 to settle at 34,616.64 and the Nifty ended 29.65 points higher at 10,614.35.