Ford to phase out sedans in North America

Ford to phase out Fusion, Taurus and Fiesta models

Ford to phase out Fusion, Taurus and Fiesta models

The company will be keeping SUVs and trucks, but they'll be cutting actual cars down to just two models.

In a bid to cut expenses, Ford has made a decision to reduce its offerings in the United States market to just the Mustang and the Focus Active crossover in the passenger auto segment.

Ford recently announced that it will cut $11.5 billion in costs.

Ford said it expects pretax profit margins of 8 percent globally and 10 percent in North America by 2020, ahead of a previous target of 2022.

Ford's new fitness regime kicks off with a dramatic shift in product and market strategy, starting with the sedan segment in North America.

New vehicle sales data tells the story.

Ford posted a net profit for its first quarter of $1.74 billion equal to 43 cents a share, up from last year's first quarter of $1.6 billion equal to 40 cents a share. The Ford Mustang and Ford Focus will also remain in the lineup. But kiss goodbye to the Fiesta, Focus, Fusion, Taurus, and C-MAX.

"We have looked at every single part of the business", Shanks said. It is clearly saying any advantages the traditional sedan had (such as a lower center of gravity) are no longer enough to make up for a small- or medium-size crossover's greater space.

Ford has allocated $7 billion of research funds from cars to SUVs and trucks.

Notably, this doesn't mean we won't get Ford's promised hybrid-electric trims for some of its most popular models. Could Ford of Europe be on the bubble? They plan to only produce the Mustang and Focus Active crossover vehicles as well as trucks, SUV's, and commercial vehicles.

American automobile giant Ford has come up with a drastic plan for North America as part of being conservative and concentrate on future developments. Felker says Ford expected demand for those vehicles "to support the same number of employees as we have today".

Shanks said the Lincoln brand still is losing money in China, where it launched in 2015, but now plans to begin local production there in 2020. By phasing out most of its lineup, Ford can begin developing new mobility services and further invest in its "smart city" concept.

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