The No. 2 U.S. automaker said it now plans to cut $25.5 billion in costs by 2022, up from a total of $14 billion the company announced to investors last fall. The automaker said it will either fix or eliminate unprofitable global operations. "We are committed to taking the appropriate actions to drive profitable growth and maximize the returns of our business over the long term. We expect demand for these two vehicles to support the same number of employees as we have today".
Ford has been criticized by Wall Street analysts for offering few details on Hackett's strategy for the company.
In 2017, the company's pretax profit fell to $8.4 billion from $10.3 billion. Could Ford of Europe be on the bubble?
Ford will strip its North American lineup of passenger cars, transitioning to an nearly exclusive SUV and pick-up lineup, with the Mustang to remain as the only low-riding vehicle in dealerships. Ford's best-selling sedan is the Fusion but that too will not see an all-new model although it is yet to be known when sales will stop.
Ford Motor Co. said Wednesday it will shed most of its North American vehicle lineup as part of broad plan to save money and make the company more competitive in a fast-changing marketplace.
Marketwatch has the details on Ford's plans.
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Dropping out of the sedan business in the United States is a momentous shift for Ford.
But Americans are abandoning sedans and choosing trucks and SUVs.
Apart from the Mustang, the only other auto model that Ford will be making in future will be a new compact crossover called Focus Active, starting in 2019.
By 2020, Ford also aims to have high-performance SUVs in market, including five with hybrid powertrains and one fully battery-electric model.
If left in place, the current corporate average fuel economy (CAFE) standards would require Ford's SUVs, crossovers, trucks, and Mustang to average roughly 35 to 37 mpg, after exceptions.
The company will be keeping SUVs and trucks, but they'll be cutting actual cars down to just two models. By phasing out most of its lineup, Ford can begin developing new mobility services and further invest in its "smart city" concept.
Last May, Ford's board called on Hackett, a former chief executive of the office furniture-maker Steelcase who had been running Ford's new businesses related to autonomous vehicles, to whip the company into shape.