Ford is about to abandon American sedans

Ford plans to cut $11.5 billion in operating costs and reduce spending by $5 million from 2019 to 2022. These reductions would come on top of the $14 billion in cuts that the automaker previously announced in the fall.

If you’re looking to buy a auto from Ford, you’ll soon have only one choice: a Mustang.

“Ford’s vehicle sales have been abysmal”, she said, noting that she has expected Ford to abandon the Taurus for years. Its Chicago plants builds the Taurus, but most of that plant’s capacity goes to the Explorer SUV. The company has announced that its production of sedans will be a thing of the past as it shifts more of its focus to what it does best.

Ford and other automakers have been shuffling resources away from cars for the past five years as consumer tastes have abandoned smaller vehicles in favor of crossovers and sport utility vehicles (SUVs). General Motors may soon follow suit. “There’s been rumblings about GM dropping the Sonic and Spark from their North American lineups”, he told us. We thought readers might be interested in some perspective.

In a state written on Medium, Jim Farley, President of Global Markets, said that Ford were adapting to the new market. “They only care about the money”.

And, they were quick to remind me, not everyone wants a beefy pickup or SUV with interior room comparable to a NY studio apartment. “All they’re trying to do is make a living and support their families”.

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. In the recent weeks, many automobile companies have recognized EV segment as the future and Ford’s decision to phase out conventional cars will give further push to electric vehicles market. Last year, the company’s pretax profit dropped to $8.4 billion from $10.3 billion. Tesla, an American-based startup, has generated huge excitement with its Model S luxury sedan and Model X SUV, both of which are higher performing, more stylish, and more distinctive than anything coming out of Europe or Japan in those price points.

Industry analysts said the announcement was not a surprise.

Detroit’s Big Three automakers aren’t the only ones dealing with the problem. Over 2,600 workers, or 16 percent of the company’s South Korean workforce, have been coerced into leaving via a “voluntary” severance program. In this struggle, workers are finding that the unions are no less determined enemies than the employers themselves. “It’s been easy to identify what’s wrong and what we need to do about it. How can you trust them?”