Ford beats on first-quarter earnings - but kills sedans in US (F)

The Focus Active is a crossover-style compact

The only cars Ford will renew for the North American market are the Mustang, which is to be replaced with a new model in calendar 2020, and the new Focus Active, which, anyway, the company describes as a crossover SUV.

Cutting its slow-selling sedans and hatchbacks will serve to free up even more capital for light truck and mobility development.

The decision, which Hackett said was due to declining demand and profitability, means Ford will no longer sell the Fusion midsize auto, Taurus large vehicle, CMax hybrid compact and Fiesta subcompact in the U.S., Canada and Mexico. The company will still produce a range of SUVs and trucks, including the Escape, Explorer, Bronco, and F-150-the best-selling truck model in the US.

Ford has since also confirmed that only the next-generation Focus Active will arrive stateside, meaning the sedan and hatchback versions of the vehicle will not make their way to the US market.

Sales for mid-size and large sedans has dropped significantly in the USA since March of past year. Henry Ford agreed as he was still paying per vehicle on the Selden Patent, and figured his future was in farm tractors, anyway. Automotive revenue rose to $39 billion, exceeding the average projection for $37.2 billion in a Bloomberg survey.

The all-new Bronco will be revealed next year
The all-new Bronco will be revealed next year

Crosstown rival Fiat Chrysler already has thinned its sedan lineup to the Chrysler 300, Dodge Charger, and Alfa Romeo Giulia, much to the delight of Wall Street and the automaker's investors.

Ford plans to cut $11 billion in operating costs and $5 billion in capital expenditures between 2019 and 2022.

Ford said on Wednesday the only passenger auto models it plans to keep on the market in North America will be the Mustang and the upcoming Ford Focus Active, a crossover-like hatchback that's slated to debut in 2019. "We're going to feed the healthy part of our business", and dispose of marginal operations, Hackett added. In 2017 the company's pretax profit fell to $8.4 billion from $10.3 billion. "We are driven to turn this business around".

This change includes financial incentives like low-monthly payments, trade-in value of cars as well as the improvement of several factors from more fuel-efficient and better-equipped trucks and SUVs to improved safety ratings and ride qualities of these vehicles. The 9% increase in quarterly profit can be nearly entirely attributed to a drop in the automaker's effective tax rate to 9% from 28.6%, Ford officials said.

The company's loss in its Asia Pacific region was driven by slumping sales in China, where Ford has just begun to introduce new models.

Related News:

  • ANZAC Day reminds Sabah to develop sense of togetherness

    ANZAC Day reminds Sabah to develop sense of togetherness

    Two hymns were sung during the service, Amazing Grace and Abide With Me, which also held a special place in hearts of veterans. Later in the day there will be a procession, followed by a service at Westminster Abbey.
    Policemen kill six more Naxals in Gadchiroli

    Policemen kill six more Naxals in Gadchiroli

    These 15 Maoists are said to be from among those who managed to escape into the forests during Sunday's encounter. The elite C-60 commandos of district police were involved in the operation, said another senior police official.
    Asaram rape case: verdict expected today

    Asaram rape case: verdict expected today

    August 20, 2013: Victim's family file complaint against Asaram in Delhi and the case was later transferred to Jodhpur police. January 11, 2015: Akhil Gupta, who worked for 10 years in Asaram's ashram , shot dead in Muzaffarnagar.
  • Prolonged Syrian war causing donor fatigue

    Prolonged Syrian war causing donor fatigue

    But the West has ruled that out, seeing money as its best leverage to try to force Assad into peace talks, so far in vain. Meanwhile, EU High Representative Federica Mogherini in her opening address said "we are here for Syrians, all of them".
    Pitcher Danny Farquhar in Critical Condition After Brain Hemorrhage During Game

    Pitcher Danny Farquhar in Critical Condition After Brain Hemorrhage During Game

    Bob Nightengale of USA Today reports that Farquhar is expected to remain in the hospital for at least the next three weeks. "He's alive, he's got a chance and that's what I'm hanging on to", said White Sox pitching coach Don Cooper .
    Yemen rebels say strike kills senior official

    Yemen rebels say strike kills senior official

    The coalition says the Houthis are armed and supported by Saudi arch-adversary Iran - charges the group and Tehran deny. The strike wounded 32 children, according to the head of the Al-Jimhori hospital in Hajja Mohammed AlSomali.
  • Nominations filing day for Bengal polls

    Nominations filing day for Bengal polls

    Because they did not have a support base, they had stirred up unrest in a bid to hold up the elections, he alleged. The court said that the commission would lie in contempt if the order was not executed.
    Trade rows, debt load risk world economy

    Trade rows, debt load risk world economy

    On Sunday, China's commerce ministry said it would welcome United States officials to discuss trade and economic issues. Finance leaders repeatedly sounded warnings about a potential trade war.
    Comey memos: Trump fixated on lewd accusations

    Comey memos: Trump fixated on lewd accusations

    The memos, which were obtained this week by the AP, were unclassified, though some portions were blacked out as classified. Mr Priebus asked Mr Comey, according to the memos , referring to an order under the Foreign Intelligence Surveillance Act.
  • Takeda lifts Shire takeover bid again

    Takeda lifts Shire takeover bid again

    Dealmaking has surged in the drug industry this year as large players look for promising assets to improve their pipelines. The Japanese drugmaker said it and Shire extended the deadline for talks on the acquisition to May 8.
    Can Macron's White House visit save the Iran deal?

    Can Macron's White House visit save the Iran deal?

    Macron also said he'll ask Congress for its support in efforts to stamp out terrorism and reign in rouge nations. Macron will bring with him an oak sapling to be planted at the White House as a symbol of friendship.
    Waffle House shooting victims ID'd as worker, star athlete, music artist

    Waffle House shooting victims ID'd as worker, star athlete, music artist

    He was seen walking, naked, on a road, officials said, but later was seen in trousers after apparently returning to his apartment. Police said late Sunday morning that authorities are preparing arrest warrants on murder for Reinking, who is feared to be armed.


Most liked

United States trade officials to visit China soon, Trump says
In a speech earlier this month, Chinese president Xi Jinping said his country would open itself wider to foreign companies. An Associated Press report says U.S.

Suspect in custody after two Texas police officers shot
Juarez is facing multiple counts of aggravated assault of a police officers and also has an outstanding warrant for felony theft. Two police officers and one civilian were critically wounded during a shooting at a Dallas , Texas, Home Depot store Tuesday.

Donald Trump just got a big win on Mike Pompeo
The vote came after widespread speculation that the former Kansas Congressman would not receive a favorable recommendation. President Donald Trump is attacking Democrats as he seeks Senate confirmation of Mike Pompeo as secretary of State.

IL seeks to close gun law 'loophole' after Waffle House shooting
Police said that after he was arrested, Reinking declined to offer a statement or answer questions, instead requesting a lawyer. A Nashville judge has revoked the bond of a man accused of killing four people at a Waffle House restaurant.

Police taze 'combative' American Airlines passenger
At one point, Garcia taunts officers, calling one of them a "baby" and attempting to take the Taser from them. ABC 7 Chicago added that the incident caused the American Airlines flight to be delayed for about one hour.

Brandon Belt breaks Major League Baseball all-time record with 21-pitch at-bat
Joe Panik scored on Buster Posey's double-play ball and Evan Longoria followed with a two-run homer , his fourth. Brandon Belt reacts Sunday afternoon, after hitting on a ball during his 21-pitch at Bat that is first-inning.

MotoGP, BREAKING - Marquez penalised: will start 4th
Marquez continued untroubled up front to clinch victory easily and make it six wins out of six at the Grand Prix of Americas. The Italian finishes the weekend as the championship leader but is only a point ahead of Marquez now.

TCS first Indian company to touch $100 bn in market cap
TCS , which listed on August 25, 2004, had a stellar debut, claiming a 27 per cent premium to its issue price of ₹850. TCS proved to be the flagship company for the Tata Group , accounting for 85 per cent of the group's profit.

Nicaragua Cancels Social Security Overhaul
The protests quickly spread nationwide, with scenes of massive rock throwing, burning barricades, tear gas and some gunfire. Ironically, some believe Ortega is trying to instate a dictatorship that mirrors the one that he overthrew in 1979.

Barcelona Legend Rivaldo Says Neymar 'Very Likely' to Join Real Madrid
And there, yes, I think he can be the best player in the world'. 'Barcelona, because of his situation, is hard . If you're going to analyse it, there's England, Spain, Italy, Germany ...

City keeper Ederson wants goal this season
They show how happy they are and that is the most lovely thing we can live as professionals, as a manager and football players. Guardiola's team are also one win short of Chelsea's record of 30 in a 38-game season, set past year .

Westworld Season 2 Premiere Review: "Journey Into Night"
He comes across the young boy host (young Ford), who tells him he'll be playing a new game soon and that it will find him. Thankfully, I stumbled upon this fantastic passion project by one of the editors of the Westworld fan podcast Out West .

Today is Earth Day and activists are aiming to end plastic pollution
The day was first celebrated on April 22, 1970, and the event 48 years ago was organized by US Senator Gaylord Nelson . End Plastic Pollution aims to lead a worldwide grassroots movement, which will focus on regulating plastic pollution.

A's top Red Sox
On top of the Benintendi play, there was a ball in the fifth inning that was ruled an error that Manaea thought was a hit. Melvin called for Petit, who got Ramon Vasquez on a foul pop and then struck out Tzu-Wei Lin for the third out.

Newly discovered exploding ant sacrifices itself for the colony
They say they still need to know more about the ants' behavior, chemical profile, microbiology, anatomy and evolution. As noted, only minor workers explode , but the researchers also discovered other specialities among other castes.