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Ford decides to not to invest in traditional sedans in North America

ABR Staff Writer Published 27 April 2018

Ford Motor said that will not invest in next generations of traditional sedans for North America due to declining consumer demand and product profitability.

The company announced the decision in its first quarter 2018 financial results.

Ford said that about 90% of its portfolio in North America will be trucks, utilities and commercial vehicles by 2020.

The Ford car portfolio in North America will transition to two vehicles in the next few years.

The two vehicles include the Mustang and the all-new Focus Active crossover, which is due to be launched next year.

The company said it is also exploring new white space vehicle silhouettes that combine the best attributes of cars and utilities, like higher ride height, space and versatility.

Ford expects to improve its capital efficiency. The company had earlier expected to invest around $34bn in capital from 2019 to 2022. It has now cut that by $5bn, to $29 bn over the same period.

The company plans to create long term value by making a full commitment to new propulsion choices, including the addition of hybrid-electric powertrains to high-volume, profitable vehicles such as the F-150, Mustang, Explorer, Escape and Bronco.

Ford's battery electric vehicle rollout begins in 2020 with a performance utility, and the company will bring 16 battery-electric vehicles to market by 2022.

Ford CEO Jim Hackett said: “We’re going to feed the healthy part of our business and deal decisively with areas that destroy value.

“It’s been easy to identify what’s wrong and what we need to do about it. The hand-wringing maybe that has been around in our business is gone. We’re starting to understand what we need to do and making clear decisions there.”

The company delivered increased revenue, up 7% year over year, for the first quarter and net income of $1.7bn, up 9% year over year,

Image: Ford CEO Jim Hackett. Photo: Courtesy of The Ford Motor Company.