Published: Fri, April 27, 2018
Money | By Wilma Wheeler

Scene Changing at Ford Dealerships as vehicle are Phased Out

Scene Changing at Ford Dealerships as vehicle are Phased Out

By 2020, Ford plans to make 90 per cent of its lineup CUVs, SUVs, trucks, and commercial vehicles.

Specifically, Ford is getting rid of the following models: the Fiesta, Focus, Fusion, C-Max, and Taurus.

News of the turnaround plans arrived as Ford reported further signs of difficulty in the first quarter of 2018.

Ford made $1.74 billion from January through March, or 43 cents per share, compared with $1.59 billion, or 40 cents per share a year ago. Revenue jumped by 49 percent year over year to almost $12 billion.

The No. 2 automaker in the USA said it is now planning to cut up to $25.5 billion by 2022 in costs, which is up from its previously announced amount of $14 billion last fall.

"We will have a very diverse passenger vehicle business", Jim Farley, Ford's president of global markets, said Wednesday. That is on top of about $14 billion in efficiencies the company had already promised to achieve in the next several years.

The company's Oakville, Ont., complex now assembles the Ford Edge, Ford Flex, Lincoln MKX and Lincoln MKT - all sport utility vehicles.

The latest planned reductions will come from areas including engineering, materials costs, marketing and sales. Let's be honest, when was the last time you got excited about a Ford auto that didn't have an ST or RS badge attached to it?

In North America, Ford's largest and most important region, pretax profit was $1.9 billion, down $200 million from a year earlier.

Jerry Dias, national president of Unifor, said his union's members at Canadian Ford plants won't be affected in the short term by the accelerated cost-cutting program announced Wednesday. The company, which does still produce some vehicle models, shuffled production and preserved factory jobs. Where would new customers turn for an entry-level offering when Ford's North American dealerships no longer carry a single sedan? Move comes as no surprise Michelle Krebs, executive analyst at AutoTrader.com, said Ford's move is no shock, reports the Detroit Free Press. Could Ford of Europe be on the bubble?

Company officials said the shift was based on declining demand and profitability, but Ford reported $1.7 billion in profit for the first quarter in 2018 - a 9 percent increase compared to the same period previous year. The company expects its profit margin in North America to rise to 10 percent by 2020, Shanks said. Shanks defined disposition as a different business model, efficiency improvements, exiting or downsizing.

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