The only two cars Ford will make will be the Mustang and a new Focus Active crossover, scheduled for release in 2019. This is exactly what Fiat Chrysler Automobiles NV did to overtake Ford in profitability in the North American region. The strategy involves doing away with some of its traditional sedan model in the North America market which have increasingly become very unpopular.
Note that the streamlining of their portfolio only applies to cars like sedans. Until hybrid versions of the Mustang, F-150, and more crossovers debut, the Fusion Energi will be Ford's only plug-in until its dedicated "performance utility" EV arrives in 2020.
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. So they may be shifting from sedans in the US market to SUVs and the larger trucks. And executives said they're reviewing strategic plans for South America, a market where Ford has been consistently losing money. In a separate post on Medium, Ford's president of global markets Jim Farley said Ford's trucks and SUVs will soon become 86 percent of the company's USA volume.
Ford's revenue worldwide increased 7 percent to $42 billion for the quarter.
Ford to GIVE UP on saloons and Hatchbacks in the United States - the beginning of the end for the Mondeo?
The company said its first-quarter net income rose 9 percent due largely to a lower income tax rate.
The deep cuts to Ford's vehicle lineup are part of the company's goal of creating "a winning portfolio and focusing on products and markets where Ford can win", the company said. For example, by 2020, nearly 90 per cent of the Ford portfolio in North America will be trucks, utilities and commercial vehicles.
The company will focus on commercial vehicles and only on Mustang and hopes to get 8 per cent profit margin in just two years, way ahead of its original plan. Among those will be 16 battery-only models, including the Mach 1, a high-performance electric SUV coming in 2020.
The company is also reviving two of its historic vehicles: the Ranger pickup, which will return in 2019, and the Bronco SUV, which will return to the USA market in 2020. For this plan to be successful for both companies, fuel needs to continue being affordable and market demand for SUVs and trucks needs to continue to grow.
The formal shift away from cars comes after Ford sold 128,794 cars so far in 2018 - a drop of almost 14 percent from the same period in 2017.