Published: Fri, April 27, 2018
Markets | By Josh Butler

Ford cutting production of cars to just Mustang, Focus by 2020

Ford cutting production of cars to just Mustang, Focus by 2020

Ford says it doesn't expect any layoffs at its Chicago assembly plant after the company announced it would be phasing out most cars in favor of SUVs and trucks.

Ford is not going to invest in the next generation of Ford sedans in North America including its full-size Taurus or midsize Fusion, said the company in its outline.

By not investing in next generations of any auto for North America except the Mustang, Ford will now anticipate till it reaches an 8 percent profit margin by 2020, two years ahead of schedule.

Ford's remaining USA range will be SUVs and pick-ups, although it might introduce new "white paper" vehicles that the brand describes as combining "the best attributes of cars and utilities, such as higher ride height, space and versatility".

News of the turnaround plans arrived as Ford reported further signs of difficulty in the first quarter of 2018.

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Last week, following a report that said Ford will introduce a hybrid Mustang in the near future, a Blue Oval spokesperson confirmed that such a model is indeed in the making, waiting to make a debut in 2020. In 2017, the company's pretax profit fell to $8.4 billion from $10.3 billion. As part of the move, Ford will be phasing out sales of traditional sedans and hatchbacks in the North American market. In March, light truck sales surged 16 percent, posting a 9.5 percent increase for the first quarter. Ford's sedans are slow sellers with profit margins that aren't as high. Europe was the only region to turn a profit for Ford.

Passage's new procedure additionally incorporates focusing on new impetus decisions, for example, adding half and half electric powertrains to gainful vehicles, for example, the F-150, Mustang, Explorer, Escape, and Bronco. This change includes financial incentives like low-monthly payments, trade-in value of cars as well as the improvement of several factors from more fuel-efficient and better-equipped trucks and SUVs to improved safety ratings and ride qualities of these vehicles.

This does not mean that the Fusion, Focus, Fiesta and Taurus will necessarily die in other markets, since they are also built elsewhere.

Ford says that it "maintains the highest transaction prices of any full-line automaker - $36,300 per vehicle".

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