Ford cutting production of cars to just Mustang, Focus by 2020

29 April, 2018, 01:47 | Author: Greg Lawrence
  • Rise of The Cobra: Ford marks the car's 50-year anniversary

The shocking part of Ford's announcement is "how quickly and how many vehicles" it chose to scrap in one move, said Jessica Caldwell, executive director of industry analysis for Edmunds.

Ford announced in their recent quarterly call that their future auto lineup will consist of only the best-selling Mustang, and a new Focus Active (which will be a small crossover).

The Ford assembly plant on Chicago's Southeast Side is not expecting any layoffs as the company phases out most cars - including the signature Taurus sedan built there - in favor of SUVs and trucks. In addition to putting hybrid-electric power trains into high-volume sellers in its SUV and truck line, the company will roll out a "performance utility" vehicle powered by an electric battery in 2020. Ford expects to move from second to first place on the market of hybrid cars, the USA sales, ahead of current leader Toyota by 2021, thanks to the upcoming hybrid Mustang and F-150. "It's been easy to identify what's wrong and what we need to do about it". "They're king of the truck market, and their SUVs do well, but they're losing money on their cars".

According to Eisenstein, the demand for crossover vehicles is growing rapidly. "The entire team is focused on improving the operational fitness of ourbusiness, as well as meeting and exceeding our accelerated 2020 target of 8 percent margin and ROIC in the high teens". Electrification would mean that those vehicles will be converted to mild hybrids, plug-in hybrids, or battery-electric powertrains. "It's a little bit of everything, and I don't think they're done yet".

The formal shift away from cars comes after Ford sold 128,794 cars so far in 2018 - a drop of almost 14 percent from the same period in 2017. "At the same time, the average age of our vehicles will drop to just more than three years".

Ford Fusion sales, for example, declined 21 percent while Nissan Altima sales declined 17 percent.

Stillwater Investment Management LLC Maintains Position in Apple INC (AAPL)
Following the sale, the insider now owns 422 shares of the company's stock, valued at approximately $49,745.36. At the end of 12/31/2017 reporting period, 1,233 institutional holders increased their position in Apple Inc .

Toyota and Honda, which still amass big sales numbers with the Camry, Accord, Civic, and Corolla, probably would be slower to remove sedans from their lineups, Abuelsamid said. While future fuel-economy regulation policies are very unclear, Ford's big bet on trucks and crossovers comes with a similarly big bet on electrification and widespread cost-cutting measures to make those cars affordable and popular. Ford is known for SUVs and trucks. "Ford also made station wagons and woodies, and those were sort of the forerunners of SUVs". He added that the company will restructure and start focusing on profitable businesses only.

For some analysts, Ford's latest move was hailed as decisive and necessary.

"The passenger vehicle rationalization plan is just the sort of bold and decisive action we believe investors have been waiting for", Ryan Brinkman, an auto analyst at JPMorgan Chase & Co. wrote in a report Thursday.

In an earnings call on Wednesday, the giant automaker said it plans to discontinue the Ford Fusion, Taurus, and Fiesta in North America.

Ford Chief Financial Officer Bob Shanks told reporters it is too early to say whether the additional cuts and "efficiency opportunities" would result in layoffs or staffing reductions.

"Keeping mustang of course because it's an iconic brand of Ford", said Rob Keller, President at Keller Ford.

Recommended:



Popular

13 children die as India school bus hits train
"The train driver tried to apply the brake but the speed of the train was such that a collision could not be averted". According to the Railway Ministry, it was an unmanned level crossing with Gate Mitra deployed there.

England and South Africa begin quest to end World Cup drought
More details of all 48 matches will be officially revealed later on Thursday, with details of ticket pricing to also be confirmed. The big-ticket India vs Pakistan clash will take place on June 16, and that will be India's fourth game of the tournament.

Why Nintendo Switch is Dominating (And What It Means for Gamers)
Nintendo has just reported its financial results for the year, and the results are absolutely staggering. "Ultimately Mr. It's unlikely that Nintendo will be able to repeat the success of the Wii which sold 101 million units globally.

WH Doubles Down Support For Jackson, Who Vows To Continue With Confirmation
The Montana Democrat told CNN's Anderson Cooper that around 20 people raised concerns to his committee about Rear Adm. The situation was so disruptive that the #Secret Service had to stop him because he would've woken President Obama .

Couturier played with torn MCL
A year ago, we spoke about being a team with depth and the ability to not look to one, or two, or three, or four players. Jake Guentzel's four goals led the Pittsburgh Penguins to victory against the Philadelphia Flyers .

Pit Bull Attacks Woman On NYC Subway Train
The video shows the pooch chomping down on a woman's shoe for several seconds as straphangers yell at the animal's handler. A viral video of a pit bull attacking a woman on a New York City subway has caught the attention of police .

Israel, US concerned by recent Iranian cargo flights to Syria
Votel is also expected to discuss Washington's possible withdrawal from the 2015 nuclear deal with Tehran, the source said. A separate report said that the target of the air strike was an Iranian drone base .

Palestinians die of wounds sustained in Gaza protests
He was moved from Gaza to the West Bank for treatment before being admitted to an Israeli hospital due to his critical condition. The protests began in late March and are set to continue until at least May 15, the day Palestinians mourn Israel's creation.

Trump pick for VA faces allegations over drug prescriptions, wreck
Trump insisted he would stand behind his nominee, even as he suggested the political battle might not be worth it. Coons , Delaware Democrat, said on CNN.

US Supreme Court divided over Texas electoral district fight
The case covers two congressional districts in the Lone Star State but mostly several state house districts. Attorneys for the voters echoed these concerns that the case was prematurely before the court.