Ford Says No New Cars in US Except Mustang, Focus Active XUV

New Ford Focus ST to get RS engine

New Ford Focus ST to get RS engine

Responding to a shift in consumer demand to SUVs and pickup trucks, Ford said it planned to trim its North American vehicle portfolio to just two models: the sporty Mustang, which debuted 50 years ago this month, and a new compact crossover called Focus Active starting in 2019.

Cutting its slow-selling sedans and hatchbacks will serve to free up even more capital for light truck and mobility development.

Hackett also announced that Ford Motor will implement $11.5-billion in cost reductions by 2020, on top of $14-billion in cost reductions announced earlier.

The company said its first-quarter net income rose 9 percent due largely to a lower income tax rate.

"We're going to feed the healthy parts of our business", Hackett told analysts on a conference call Wednesday, "and deal decisively with the parts that destroy value".

For those keeping count, Ford will be left with only two auto models after the current generation Fusion, Fiesta and Taurus die off. Ford dealerships will be left only with the Focus Active and Mustang.

Ford's shares traded up about 2.2% in after-hours trading Wednesday at $11.35 after closing at $11.11, in a 52-week range of $10.14 to $13.48.

Ford "will not invest in next generations of traditional Ford sedans for North America", including the midsize Fusion and full-size Taurus, the company said. We are determined to turn this business around right throughout the whole company.

Ford has stated that nearly nine out of every 10 vehicles it sells in 2020 will be a truck or SUV, so grab your Focuses, Fusions and Fiestas while you can, ye Ford faithful. For the quarter, the automaker posted adjusted diluted earnings per share (EPS) of $0.43 on revenues of $41.96 billion. Ford is choosing the "much higher-performing" [in terms of profitability] utilities and not "traditional-silhouette sedans that tend to be commoditized".

In the first quarter of 2018, Ford's profit margin dipped to 5.2pc from 6.4pc a year earlier, as it was squeezed by higher aluminium and steel prices. Its Asia Pacific business swung to a $119 million loss, from a $148 million profit a year ago.

Shanks said Ford is "unleashing the creativity of the teams to challenge norms, challenge conventions".

The move comes just a few weeks after the automaker announced plans to have eight utility vehicles on sale by 2020, including a new Bronco and an all-electric performance model codename Mach 1.

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