Published: Fri, April 27, 2018
Finance | By Cynthia Curry

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

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

Ford hasn't said exactly when the Taurus and other models will be phased out, but the company's statement says nearly 90% of its North America portfolio will be trucks, utilities, and commercial vehicles by 2020.

Ford of North America has set a target - by 2020, over 90 per cent of its product lineup in North America would comprise trucks, SUVs and commercial vehicles. Analysts had on average expected earnings per share of 41 cents.

Ford's revenue worldwide increased 7% to $42 billion for the quarter.

Ford previously predicted $14 billion in cuts by 2022. By 2021, Ford projects it will surpass Toyota and become the leader in the United States hybrid vehicles market in terms of sales, in part thanks to the hybrid F-150 and Mustang.

"We're not going to invest where it doesn't make sense", CFO Bob Shanks said.

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Their wives, as well as current first lady Melania Trump were also there to pay respects to Barbara Bush . People also noticed that Melania was sitting next to Barack Obama during the funeral service.

And, they were quick to remind me, not everyone wants a beefy pickup or SUV with interior room comparable to a NY studio apartment. Abstaining from that spending is part of Hackett's plan to cut $25.5 billion in costs by 2022.

The changes come amid shifting consumer demand, which has seen sales of SUV models grow and demand for saloons falter. Exactly when these models will stop being sold in the market hasn't been announced. Fiat Chrysler did away with the Dodge Dart and Chrysler 200 more than a year ago. "In a conference call on Wednesday, the chief executive said Ford will outline a full turnaround plan for investors and analysts on September 26", the NYT's Boudette reports.

You've probably heard by now: Ford is, for the most part, getting out of the auto business. Where would new customers turn for an entry-level offering when Ford's North American dealerships no longer carry a single sedan?

Dave Sullivan, manager of product analysis for AutoPacific, Inc., called the move bold but also not surprising. "Obviously, this has done well for brands such as Subaru".

Ford finds itself on a road similar to the route Fiat Chrysler Automobiles NV followed to pass Ford in North American profitability. Shanks said the higher commodity prices were largely to blame. And in every region of the world, Ford reported either a decline in profits or a loss.

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