Ford fall Fiesta hatchback and Fusion saloon (the American version of the Mondeo) from their line-up to the year 2020.
The brand will also axe its great hall of Taurus, that is to say, the only cars Ford is going to sell in their home market of the next decade will be the Mustang (below), and the next Focus of Active crossover.
Ford will be the Suv’s and pick-ups, although it could introduce a new ‘white book’ of the vehicles that the brand is described as a combination of “the best attributes of cars and public services, such as a greater height, and the space and versatility”.
The changes come amid shifting consumer demand, that it has been seen that the sales of SUV models grow, and the demand of the salons falter.
“We are committed to take the appropriate actions to drive profitable growth and maximize the profitability of our business in the long term,” said the CEO of Ford, Jim Hackett.
“Where we can raise the yields of the lack of effectiveness of the parts of our business, making it more suitable, we will. If appropriate revenues are not on the horizon, we’re going to change that capital, where you can play and win.”
Stephen Odell: the man who saved Ford in Europe
Ford said in its first quarter of 2018 statement that it would introduce a hybrid-electric propulsion systems “high-volume, cost-effective vehicles”, such as the F-150 pick-up, the Mustang and the Explorer, Escape and Bronco Suv. The company will bring its first battery electric model to market in 2020; a 15 will follow in 2022.
The brand also emphasized autonomous technology and the creation of a mobility platform as a key business opportunities that you will invest in.
Ford said the changes will not require an additional investment, but instead of being enabled by the release of $11.5 billion (around £10 billion) of existing programs. Ford now expects to spend $29bn (around £25.4 bn) between 2019 and 2022; it is said that it is a $5bn (£4.4 bn) reduction in the previous estimates, thanks to the cost-effectiveness of the improvements.
The company recorded a 7% increase in revenue and a 9% increase in net income of $1.7 million in the first quarter. It boosted revenue by 18% in Europe.