Ford plans $11.5B in extra cuts, to end most U.S. cars

The company also is reviewing its strategic plans for South America.

“Everything will be on the table” to fix Ford, Shanks told reporters at the company’s headquarters in Dearborn, Mich. “We can make different investments, we can partner, we can exit products, markets — and we will do that.”

One factor that had been contributing to investor pessimism has been commodity costs, which Ford expects will be a $1.5 billion headwind this year.

About $500 million of that came in the first quarter, Shanks said. The automaker began the year flagging to investors that pricier raw materials including steel and aluminum would contribute to profit declining in 2018.

Ford said it won’t invest in new generations of sedans for the North American market, eventually reducing its car lineup to the Mustang and an all-new Focus Active crossover coming next year.

By 2020, almost 90 per cent of its portfolio in the region will be pickups, SUVs and commercial vehicles.

Thatmeanstheendofthe road for slow-selling sedans such as the Taurus, Fusion and Fiesta in the U.S.

The automaker conspicuously left the Lincoln Continental and MKZ sedans off its hit list, but since those models share mechanical foundations with Ford siblings, their futures also are in doubt.

“For Ford, doubling down on trucks and SUVs could be just what the brand needs,” Jessica Caldwell, an analyst for Edmunds.com, said in an email. “But this move isn’t without risk: Ford is willingly alienating its car owners and conceding market share.”

Investorshadbeengrowing impatient for additional detail on the money-losing models Ford would ditch — and for signs its reorganization efforts would bear fruit.

“It’s not that the market has permanently given up on good news ever happening at Ford,” said David Whiston, an analyst with Morningstar Inc. who recently lowered his rating on the stock to the equivalent of a hold.

“But most people aren’t expecting it until late 2019 or 2020 and that brings up the wild card of, ‘Will we be in a recession by then?’ ”

Hackett, 63, sought to assuage those concerns by promising “urgent” action.

“The hand-wringing that has been around in our businessisgone,”hesaid.“We’re starting to understand what we need to do and are making clear decisions.”