Ford to drop American Sedans

BIZ-show08-11

In a turning tide of events witnessed across the automotive sector, the Ford Motor Company has sketched a plan for cutting operational costs & augmenting its revenue by halting the sale of sedans in North America. By 2020, nearly 90 percent of Ford's North American portfolio will be pickups or sport utility and commercial vehicles. Getting rid of slow-selling, low-margin vehicle models and refocusing the company around more lucrative trucks and SUVs is a crucial element of new CEO Jim Hackett's rebound bid. According to the news, in another 2 years, only 10% of the Ford vehicles being sold in showrooms in America will be sedans and sports cars such as the Taurus and Mustang.

"The company is also exploring new "white space" vehicle silhouettes that combine the best attributes of cars and utilities, such as higher ride height, space and versatility", Ford said.

Ford also announced that it generated net income of $1.7bn in the first quarter, up 9% year-on-year, although it made a loss of £119m in Asia Pacific and a loss of $149m in South America. "Here in the US, it certainly makes sense". The company is aiming to hit a pretax profit margin target of 8 percent by 2020.

Detroit, Mich. -based Ford has found another US$11.5 billion in cost cuts and efficiencies, bringing the total savings to US$25.5 billion expected by 2022, chief financial officer Bob Shanks told the Associated Press.

More news: Gmail receives a new design and a slew of add-ons

Ford Motor Co. announced it's going to stop making cars for the North American market, save the iconic Mustang. SUVs and trucks have higher margins than sedans and hatchbacks.

Ford expects to improve its capital efficiency. If that were to happen, the Japanese auto manufacturers such as Honda and Toyota could end up with pockets full of cash in a segment with little competition. It said its battery electric vehicle rollout will start in 2020 with a performance utility, and it plans to launch 16 battery electric vehicles by 2022.

The Mustang would not be part of the slashing of sedan cars in North America, but other slow-selling models including the Taurus, Fusion and Fiesta would be eliminated. The Focus will be the first vehicle to get the axe, as the compact hatch will officially be killed by May 2018. We've watched the trends and heard how they are getting outdoors, finding time away, and enjoying authentic experiences with their family and friends. "We're starting to understand what we need to do and making clear decisions there".

Related News:



Most liked

State will pay for repeat smear tests for women, Health Minister confirms
Vicky Phelan , who has terminal cancer, yesterday settled her case against the USA lab that tested her smear sample back in 2011. It's understood that if these women had been referred onwards, the cancer could have been prevented or treated earlier.

Alfie Evans and the Experts
He thanked the hospital staff "for their dignity and professionalism during what must be an incredibly hard time for them too". Alfie had been in a semi-vegetative state and scans of his brain had shown that nearly all of it had been destroyed.

Brokaw gets support after harassment allegation; withdraws from SHU commencement
Brokaw's Friday letter asserted that he played a key role in introducing Vester to Fox News boss Roger Ailes, who later hired her. The Today SHow reported on it this morning, and tonight the program Brokaw anchored for over 20 years addressed it as well.

Teachers in Arizona, Colorado walk out for more school money
Where else have teachers striked? Teachers in some districts have been advised to take personal leave time to participate. This demonstration occurred before school started, letting teachers be in the classroom by the time school started.

WhatsApp raises minimum user age to 16 ahead of GDPR
While this means huge changes for organisations, the changes for consumers will mostly centre around access to your online data. Currently, WhatsApp users must be 13 and over, but the firm announced this week that it's raising the age limit by three years.

White House Walks Back Trump's Suggestion That VA Nominee Step Aside
Several lawmakers expressed annoyance that they were left to do the work of properly vetting Trump's pick. Two senior officials told the Post that Jackson's nomination had been handled "disastrously".

ICC replaces Champions Trophy with World T20
The collapse of bilateral cricket between the bitter South Asian neighbours means their fans can only watch them in ICC events. In the wake of the recent ball-tampering scandal, the ICC also said that they intend to take stricter action.

NFL draft: New England playing the option game
Here's how we see the draft going for the Patriots , which includes a trade back at No. 31 overall. Health pending, of course, this is a better group of skill players than the team had in 2017.

Kanye West and Donald Trump are tweeting at each other. Here's why
The source added , "It's the same idea as a wife who stands in front of the TV when her husband is engrossed in a football game". It went on for a bit after that, with West tweeting out a MAGA hat, plus making several references to loving everyone.

Subway to close 500 United States stores amid global growth
Meanwhile, the company will open about 1,000 locations worldwide, including in Mexico, the United Kingdom, China and India. The rewards system, which offers $2 discounts and free items, is available for the chain's domestic and Canadian locations.

Nigeria 'unlikely to eliminate' malaria by 2030 - Health group forecasts
World Health Organization said the African region continues to bear an estimated 90% of all malaria cases and deaths worldwide. The NIAID also is pursuing research on malaria vaccines that could serve a critical role in future malaria control efforts .

Danish inventor Peter Madsen handed life sentence for murdering journalist Kim Wall
On August 21, a cyclist spotted a torso on the shore of Klydesoen to the south of Copenhagen which the police identified as Wall. Madsen claimed he slept next to her lifeless body for two hours, thinking about killing himself before deciding what to do next.

Asaram case: victim's father thanks judiciary for justice delivered
Asaram is married to Laxmi Devi and they have two children - son Narayan Sai, who is also behind bars, and daughter Bharti Devi. Under the new law, the death penalty could be awarded to those convicted of raping girls below the age of 12.

'Schoolhouse Rock' composer and Pa. resident Bob Dorough dead at age 94
His granddaughter Corin Wolf didn't disclose his exact cause of death but told CNN that Dorough was diagnosed with cancer a year ago .

Dez Bryant Rumors: WR Turned Down Multiyear Contract Offer from Ravens
He wants to sign a one-year deal, instead of a multi-year deal, so he can sign another huge contract in 2019. Dallas Cowboys Owner Jerry Jones assured that Dez Bryant will not be returning to the Cowboys next season.