It's all about those sweet, sweet profits.
Ford’s future product lineup will look sparse if you’re searching for a hatchback or a sedan. The Dearborn automaker plans to eliminate a slew of products – C-Max, Fiesta, Focus, Fusion, and Taurus – while focusing on the higher profits that come with crossovers, SUVs, and trucks. That means eliminating a majority of the brand’s sedans while leaving the Ford Mustang and all-new Ford Focus Active. Currently, Ford loses money on the Fiesta, Focus, and Fusion, according to The New York Times.
“Over the next few years, the Ford car portfolio in North America will transition to two vehicles – the best-selling Mustang and the all-new Focus Active crossover coming out next year,” the company said today in its Q1 financial report.
Ford’s new strategy also includes committing to new propulsion choices, such as adding hybrid-electric powertrains to profitable vehicles such as the F-150, Mustang, Explorer, Escape, and Bronco. The company will begin the rollout of its battery electric vehicles with a performance electric model in 2020. The company plans to bring 16 battery-electric vehicles to market by 2022.
“We are committed to taking the appropriate actions to drive profitable growth and maximize the returns of our business over the long term,” said Jim Hackett, president and CEO, in the company’s Q1 financial report. “Where we can raise the returns of underperforming parts of our business by making them more fit, we will. If appropriate returns are not on the horizon, we will shift that capital to where we can play and win.”
The news Ford is revamping its lineup to eliminate sedans and focus on crossover and SUVs doesn’t mean Ford’s not looking at making new products. The company will explore what it calls “white space” silhouette vehicles – which are vehicles that combine the best attributes of cars and utility vehicles.
Ford doesn’t offer a timeline for when the C-Max, Fiesta, Focus, Fusion, and Taurus will leave the U.S. market. However, in the financial report, Ford says, “For example, by 2020, almost 90 percent of the Ford portfolio in North America will be trucks, utilities, and commercial vehicles.” That’s relatively soon. If you want a Ford sedan, now’s your chance to buy one.