Published: Sun, April 29, 2018
Sport | By Ruben Hill

Ford May Be Abandoning Car Market in US

Ford May Be Abandoning Car Market in US

"The segments are still significant", GM CEO Mary Barra told analysts on an earnings call Thursday.

Ford Motor Co. reported a $1.7 billion profit for the first quarter of 2018, but the company says it's planning big changes - such as phasing out all cars except for the Mustang and a crossover vehicle in the North American market, so it can focus on SUVs and trucks.

Ford Motor said that will not invest in next generations of traditional sedans for North America due to declining consumer demand and product profitability.

Ford is trying to kick-start a turnaround that's yet to take hold nearly a year after the board ousted its chief executive officer.

Note that the streamlining of their portfolio only applies to cars like sedans. Meanwhile, the company has sold 19,164 Mustangs this year. The new US -market version of the Focus will be made in China. Ford made $119 million from its European business, and lost money in South America, Middle East and Africa and Asia Pacific.

A memo released by the company for 2017 showed truck and SUV sales climbed 4.3% compared to 2016, while passenger vehicle sales dropped by 15.2%. Earlier this year, James Farley, the company's president of global markets, said Ford is "shifting from cars to utilities", which have been a bigger profit driver.

Martinez's schedule didn't provide a schedule for the Fusion, as that vehicle, according to him, will be around for a few more years.

However, the company's pre-tax profits were $2.2 billion, a 14% drop compared with last year's result, which was attributed to commodity price increases and unfavorable exchange rates.

Incidentally, Ford has also chose to increase hybrid & pure electric auto production and minimize the development & production costs for increasing its revenues as well as its market share price. 90% of the vehicles will be Ford's pickups, commercial vehicles and SUVs.

But now, one of the great engines of 20th Century American industry, Ford, will be doing something very different.

The company's first battery-electric vehicle after the Focus BEV will be available in 2020 as a performance utility vehicle, and it's unlikely that will be priced below $35,000. Electrification would mean that those vehicles will be converted to mild hybrids, plug-in hybrids, or battery-electric powertrains. Ford estimates that by 2020, SUVs can be up to half of the total retail market in the United States, and that's why he puts $7 billion in investment capital from your business tradicionnyh cars in the SUV segment.

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