Currently reading: Ford to ditch Fiesta and saloons from US line-up by 2020
Blue Oval focuses on strongest-selling models and electrification
Sam Sheehan
News
2 mins read
26 April 2018

Ford will drop the Fiesta hatchback and Fusion saloon (the American version of the Mondeo) from its US line-up by 2020.

The brand will also axe its larger Taurus saloon, meaning the only cars Ford will sell in its home market from the next decade will be the Mustang (below) and upcoming Focus Active crossover.

Ford's remaining US range will be SUVs and pick-ups, although it might introduce new ‘white paper’ vehicles that the brand describes as combining “the best attributes of cars and utilities, such as higher ride height, space and versatility”.

The changes come amid shifting consumer demand, which has seen sales of SUV models grow and demand for saloons falter.

“We are committed to taking the appropriate actions to drive profitable growth and maximise the returns of our business over the long term,” said Ford CEO Jim Hackett.

“Where we can raise the returns of underperforming parts of our business by making them more fit, we will. If appropriate returns are not on the horizon, we will shift that capital to where we can play and win.”

Stephen Odell: the man who saved Ford in Europe

Ford said in its 2018 first quarter statement that it would introduce hybrid-electric powertrains to “high-volume, profitable vehicles” such as the F-150 pick-up, Mustang and Explorer, Escape and Bronco SUVs. The company will bring its first battery electric model to market in 2020; a further 15 will follow by 2022.

The brand also highlighted autonomous technology and the creation of a mobility platform as key business opportunities it will invest in.

Ford said the changes will not require additional investment but will instead be enabled by freeing up $11.5 billion (about £10bn) from existing programmes. Ford now expects to spend $29bn (about £25.4bn) between 2019 and 2022; it says that is a $5bn (£4.4bn) reduction on previous estimates, thanks to cost-efficiency improvements.

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The company recorded a 7% increase in revenue and a 9% increase in net income to $1.7bn in the first quarter. It boosted revenue by 18% across Europe.

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BeamMeUpScotty 27 April 2018

P.S. Excuses for *motorig* etc...

Old men like me ought to use some one-foot wide cell phones to write on. :-)

Some more rants though if I'm back: we can make the deduction that the horrible EcoSport stays in the US Ford game, whilst the remarquable Fiesta gets out -- what a shame...  

Scoobman 28 April 2018

The USA in numbers; Europe to follow?

4 years ago, substantially the same number of cars and light trucks (including SUVs) were sold in the USA: about 8 million of each. Car sales have fallen away by a third since then to about 5m, while light trucks have increased by a half to about 12m.

Buyers in the USA prefer SUVs, and I think that European buyers are following, although lagging by several years. I'm sure that the day will come when Ford makes the same decision in Europe, but in the meantime, I think we can expect only light make-overs in current cars from established manufacturers rather than massively expensive all-new models.

BeamMeUpScotty 27 April 2018

Don't understand at all...

...how almost everybody here (or on other motorig websites) hates SUV, and in the real life everybody buys them. OK, maybe here is the last *resistance frontier* of the *true* car segments connoisseurs?! :-)

Jokes aside, equally NOT understandable is the not-so-new pick-up mania of the US wannabe rancheros (are they all dreaming themselves as cowboys, my goodness??)

The only logical conclusion: each continent is supposed to be a subject of different social experiments.

BigMitch 27 April 2018

It's very typical and short

It's very typical and short sighted of US companies to do this. Especially Ford and GM. "No one's buying sedans anymore". No, they just aren't buying YOURS. The Toyota Corlloa is still the best selling car in the world. The Civic, Camry and even the Nissan Sylphy are all among the top 20 best selling vehicles in the world.