Ford has been synonymous with cars for a century; that’s about to change
portfolio” in the U.S., Canada and Mexico. The Detroit automaker plans to keep the Ford Mustang sports car and a new Focus crossover that the company plans to release next year.
The changes will also allow the company to devote more resources to SUVs and trucks, vehicles that have exploded in popularity as consumers continue to lose interest in passenger cars, which no longer have a monopoly on good gas mileage. Ford also plans to bring 16 battery-electric vehicles to market by 2022. The company’s latest cuts will not affect Lincoln sedans, including the Continental.
“We will refresh our entire lineup of traditional crossovers and SUVs that everyone knows, like Explorer and Escape,” said Jim Farley, Ford’s president of global markets, according to USA Today. “And then we’re going to be introducing and taking capital and redeploying it for also new silhouettes, products that give the customers the utility benefits without the penalty of the fuel economy.”
For some analysts, the move was hailed as decisive and necessary.
“The passenger car rationalization plan is just the sort of bold and decisive action we believe investors have been waiting for,” Ryan Brinkman, an auto analyst at JPMorgan Chase & Co. wrote in a report Thursday. “It is indicative of a management team for whom there are no sacred cows and which seems increasingly likely to pull other such levers to aggressively improve earnings and shareholder value.”