Ford Motor Co. dropped a bit of a bombshell when announcing its first-quarter financial results, declaring that it will phase out its slow-selling sedans in North America.
By 2020, nearly 90 percent of the automaker’s North American lineup will consist of trucks, SUVs and commercial vehicles, Ford said.
“Given declining consumer demand and product profitability, the company will not invest in next generations of traditional Ford sedans for North America,” Ford said in an April 25 news release.
By 2020, the only models in Ford’s car lineup will be the iconic Mustang and the new Focus Active crossover, the latter of which is set to debut next year.
“The company is also exploring new ‘white space’ vehicle silhouettes that combine the best attributes of cars and utilities, such as higher ride height, space and versatility,” Ford said.
For first-quarter 2018, Ford reported revenue of $42 billion, up 7 percent from first-quarter 2017, and net income of $1.7 billion, up 9 percent year-over-year.
“We are committed to taking the appropriate actions to drive profitable growth and maximize the returns of our business over the long term,” said Jim Hackett, Ford president and CEO. “Where we can raise the returns of underperforming parts of our business by making them more fit, we will. If appropriate returns are not on the horizon, we will shift that capital to where we can play and win.”