The decision to eliminate the entire sedan lineup in North America is drastic to say the least as even Fiat Chrysler Automobiles chose to keep the Chrysler 300 and Dodge Charger when it chose to focus on trucks and SUVs.
In March, Ford executives unveiled ambitious plans to shift the struggling automaker's product portfolio from passenger cars to SUVs, add more hybrid and pure electric vehicles, and reduce development and manufacturing costs - aimed at boosting profits and the automaker's share price. The automaker also said that it is "exploring new "white space" vehicle silhouettes that combine the best attributes of cars and utilities, such as higher ride height, space, and versatility".
"Everything will be on the table", Shanks said.
"We're going to feed the healthy parts of our business", Hackett told analysts on a conference call Wednesday, "and deal decisively with the parts that destroy value".
Ford will, however, continue to offer its full gamut of trucks, SUVs and crossovers.
President Donald Trump's announcement to impose a tariff of 25% on steel and 10% on aluminum comes at a tough time for US automakers, which have faced flattening sales in recent months. In fact, it looks as though the Mustang and an upcoming Focus Active crossover are the only cars that will survive the cuts. We are determined to turn this business around right throughout the whole company.
Hackett also announced that Ford Motor will implement $11.5-billion in cost reductions by 2020, on top of $14-billion in cost reductions announced earlier.
The auto maker expects its annual capital expenditure to peak this year at $7.5bn, and then will be cutting costs across engineering, marketing, manufacturing and sales between 2019 and 2022, saving a total of $25.5bn. "I don't think they're done yet".
In the first quarter, net income rose $144 million to $1.74 billion, and revenue grew 7.4 per cent to $42 billion.
Ford "will not invest in next generations of traditional Ford sedans for North America", including the midsize Fusion and full-size Taurus, the company said. The entire team is focused on improving the operational fitness of our business, as well as meeting and exceeding our accelerated 2020 target of 8 percent margin and ROIC in the high teens.
The company's loss in its Asia-Pacific region was down to a slump in sales in China.