Published on April 28th, 2018 | by Daniel Sherman Fernandez0
Ford will not invest in next generations of traditional Ford sedans?
Yes, this is the latest news from Ford North America. Ford’s shift toward selling predominately trucks and SUVs in the U.S. took another step last week as the company announced it would not replace its long-running Fiesta, Fusion, and Taurus sedans (pictured below) with new versions.
“Given declining consumer demand and product profitability, the company will not invest in next generations of traditional Ford sedans for North America,” Ford wrote in a note to investors last Monday.
Instead of new sedans, Ford will offer its Mustang sports car and a new tall-riding Focus Active hatchback based on the next-generation Focus starting next year. A Ford spokesman confirmed that the next-generation Focus sedan, regular hatchback, and wagon won’t make it stateside.
The Fiesta will end production in May 2019 after nearly a decade on sale in the U.S., according to a Ford spokesman. The Fiesta’s demise largely can be attributed to cheap gas and affordable electric small cars.
Getting rid of its Taurus sedan may be a harder proposition. The Taurus helped revive Ford in the 1980s. Sales waned in the early 2000s and the Taurus was discontinued before coming back in 2008. Production of the Taurus will end in March 2019, according to Ford. It’s unclear if the Chicago plant that produces the Taurus will continue to produce a police cars based on the Taurus, or if that will end too. Ford offers a next-generation Taurus in China, although it’s unlikely that model will be imported to the U.S.
The company’s big bet on SUVs (like the Ford Edge ST pictured above)and trucks is geared toward appeasing investors wary of slow-selling sedans and impatient with Ford’s turnaround and new CEO, Jim Hackett.
In its financial statement, Ford announced cuts of USD11.5 billion from its operating costs, and said the company posted a USD1.7 billion net income in the first three months of 2018, up 9% from the same period last year. The company also scaled back future spending from USD34 billion by 2022 to USD29 billion.