The company announced Wednesday that it cut most of its vehicle lineup in North America. By 2020, nearly 90 percent of Ford's North American portfolio will be pickups or sport utility and commercial vehicles.
In other words, small-car fuel consumption will largely be left to small crossovers-with or without electrification-and those crossovers have a way to go today. That's similar to the road map Fiat Chrysler Automobiles NV has followed on the way to pulling ahead of Ford in North American profitability.
GM reportedly has considered discontinuing some cars such as the Chevrolet Impala.
A union official says Ford workers in Ontario aren't likely to be affected by a cost-cutting program announced by the automaker.
Similarly, at Haldeman Ford of Kutztown, the Ford sedans - such as the Fusion and Taurus - that made up probably half of the dealership's business five years ago now represent only 10 to 15 percent of its new auto sales, owner Todd Haldeman said.
Dave Sullivan, manager of product analysis for AutoPacific, Inc., called the move bold but also not surprising.
Ford also plans to optimize digital marketing and offer greater discounts on vehicles, as well as putting multiple vehicles on five flexible global architectures in the next few years. "Obviously, this has done well for brands such as Subaru".
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Incidentally, Ford has also made a decision to increase hybrid & pure electric vehicle production and minimize the development & production costs for increasing its revenues as well as its market share price. Automotive revenue increased to $39 billion, exceeding the average projection for $37.2 billion in a Bloomberg survey.
So far in 2018, Ford said, the rise in its net income is "more than explained by a lower tax rate".
CFRA researcher Efraim Levy cautioned that while Ford's move to cut spending is a positive, there are "strategic risks and opportunity costs for essentially going "all-in" on trucks, utility vehicles and commercial vehicles", he wrote in a note to clients. This is a big increase from the $14 billion which the company had announced previously.
The latest planned reductions will come from areas including engineering, materials costs, marketing and sales.
Investors had been growing impatient for additional detail on the money-losing models Ford would ditch - and for signs its reorganization efforts would bear fruit.