Ford drafts cost-cutting plan, halts sedan sales in North America

Ford pivots away from making cars, will focus on trucks and SUVs

By 2020, almost 90 percent of the automaker's North American lineup will consist of trucks, SUVs and commercial vehicles, Ford said.

"Given declining consumer demand and product profitability, the company will not invest in next generations of traditional Ford sedans for North America", the carmaker said.

Just two years from now, a mere 10 percent of the vehicles rolling off Ford assembly lines and into North American showrooms will be sedans and sports cars like the Taurus or Mustang.

In what I can only perceive as trying to calm the waters, Ford global markets boss Jim Farley said that, while all this is going on, the company is exploring new vehicles with crossover space and small-car fuel economy.

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Company adjusted EBIT of $2.2 billion was down from a year ago, due to commodity cost increases and adverse exchange rates Ford said.

As usual, North America drove Fords profits for the quarter with pretax earnings of $1.9 billion.

The carmaker has also announced that they will add hybrid powertrains to the F-150, Mustang, Explorer, Escape and upcoming Bronco. Currently, Lincoln sells the MKZ medium-sized and full-sized Continental - both on the platforms of Ford. This range falls into several segments: from compact to medium Focus, Fiesta, C-Max and Fusion to full-size Taurus. Move comes as no surprise Michelle Krebs, executive analyst at AutoTrader.com, said Ford's move is no shock, reports the Detroit Free Press. This auto lineup will compliment their trucks and crossovers in North America. "At the same time, the average age of our vehicles will drop to just more than three years". According to the company, SUVs will have a big impact on the market by 2020 so the manufacturer wants to jump on that bandwagon in the near future.

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

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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.

Now the Dearborn company is more aggressively phasing out its passenger cars as it focuses on trucks and electric vehicles.

"Those of us who've been reporting this out for months, we saw this coming", Howes said. The Asia Pacific region will probably lose money in the second quarter before returning to profit in the back half of the year.

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