Ford's Audacious Plan to Save $25 Billion: Cut Every Car Except These Two Models

[GodFearinGunTotin]

Ford Plans to Cut $25 Billion from its Budget by 2022 | Fortune

This seems pretty radical. Sounds like Ford is becoming a truck and SUV company that happens to sell a couple of cars.

In a statement, Ford said it won’t invest in new generations of sedans for the North American market, eventually reducing its car lineup to the Mustang and the all-new Focus Active crossover coming out next year. By 2020, almost 90 percent of its portfolio in the region will be pickups, SUVs and commercial vehicles, the company said.

 

[K_W]

So they're going to copy RAM/Jeep and specialize?...

Fiesta SUCKS, but I would have thought they would keep the Fusion, the mid size sedan segment is huge and the Fusion is a decent car.

 

[thunderchicken]

The Fusion is a good car but they have very low resale value. The big problem right now is a number of imports are killing the domestic market with longer warranties and lower costs.

Kinda surprised GM hasn't made some similar moves.

 

[GodFearinGunTotin]

The Fusion is a good car but they have very low resale value. The big problem right now is a number of imports are killing the domestic market with longer warranties and lower costs.

Kinda surprised GM hasn't made some similar moves.

Remember GM already did it a few years ago when they flushed Oldsmobile and Pontiac. Ford has certainly taken it to a new level.

I wonder how this will affect Ford's fleet fuel economy average and what happens if/when gas prices skyrocket again?

 

[Denny347]

So they're going to copy RAM/Jeep and specialize?...

Fiesta SUCKS, but I would have thought they would keep the Fusion, the mid size sedan segment is huge and the Fusion is a decent car.

As far as I know, they are keeping the Fusion. In fact, they are introducing a special service model of their hybrid Fusion next year, after they terminate production of the Interceptor sedan.

 

[Kutnupe14]

Well, that seems like another bailout in the making. Reducing to only a couple of vehicle models is insane. If every other Ford is is either "this or that," you'll see people move on to other companies because IMO, Americans still like to be unique, and probably would think it was too cool that everyone else in their neighborhood had the same version of their car.

 

[K_W]

Remember GM already did it a few years ago when they flushed Oldsmobile and Pontiac. Ford has certainly taken it to a new level.

I wonder how this will affect Ford's fleet fuel economy average and what happens if/when gas prices skyrocket again?

Didn't Trump nix that EPA MPG mandate?... I'd bet that they're betting on two terms of Trump and more reserved Libs for the next decade or two... Dem's are taking a beating for what they let Obama do.

 

[GodFearinGunTotin]

Didn't Trump nix that EPA MPG mandate?... I'd bet that they're betting on two terms of Trump and more reserved Libs for the next decade or two... Dem's are taking a beating for what they let Obama do.

As I remember it, and I could be forgetting some stuff, Trump only nixed the insane mandates that were developed during the Obama administration. They didn't completely eliminate CAFE. Somebody correct me if I'm wrong.

 

[GodFearinGunTotin]

Well, that seems like another bailout in the making. Reducing to only a couple of vehicle models is insane. If every other Ford is is either "this or that," you'll see people move on to other companies because IMO, Americans still like to be unique, and probably would think it was too cool that everyone else in their neighborhood had the same version of their car.

Time will tell. I wonder if they know something about fuel prices in the future. Because when gas lost shot through the roof, truck sales tanked (and folks like GM and Ford make a lot of their profits off of these to keep the car lines alive) and profitability went in the ditch.

 

[K_W]

As I remember it, and I could be forgetting some stuff, Trump only nixed the insane mandates that were developed during the Obama administration. They didn't completely eliminate CAFE. Somebody correct me if I'm wrong.

I imagine we will see more hybrid or gas-extended-range EV trucks soon. No idling, full rated torque off the line for towing and climbing, plus quiet cruising... Also helps their MPG numbers. Win/Win.

 

[BehindBlueI's]

Well, that seems like another bailout in the making. Reducing to only a couple of vehicle models is insane. .

That's not what they are doing, though. They are cutting research on "traditional sedans" and looking to replace them with new models in what I'd suppose we'd call "crossovers" or small SUVs.

...the company will not invest in next generations of traditional Ford sedans for North America...The company is also exploring new “white space” vehicle silhouettes thatcombine the best attributes of cars and utilities, such as higher ride height, space and versatility.

Fiesta SUCKS, but I would have thought they would keep the Fusion, the mid size sedan segment is huge and the Fusion is a decent car.

Fiesta is already dead. The Focus Active (which looks like Ford's version of a Subaru to me) is what's staying.

As far as I know, they are keeping the Fusion. In fact, they are introducing a special service model of their hybrid Fusion next year, after they terminate production of the Interceptor sedan.

For now. Per the press release they aren't going to invest in making a next model, though, so when this one is stale that's it for the Fusion.

 

[snorko]

This is decades forward thinking on their part. Not saying I agree with it but Ford is a HUGE investor in autonomous vehicle development. They see themselves in the transportation business, not the car business.

 

[GodFearinGunTotin]

I imagine we will see more hybrid or gas-extended-range EV trucks soon. No idling, full rated torque off the line for towing and climbing, plus quiet cruising... Also helps their MPG numbers. Win/Win.

That's the dream, I suppose. I'm skeptical. Maybe there's some battery technology coming out I don't know about (which is very possible) but truck owners typically don't think like Prius owners.

 

[GodFearinGunTotin]

..the company will not invest in next generations of traditional Ford sedans for North America...The company is also exploring new “white space” vehicle silhouettes thatcombine the best attributes of cars and utilities, such as higher ride height, space and versatility.

According the article I posted, and from what I otherwise know, these car companies are all about increasing profitability right now. I've been around the industry long enough to know these companies do dumb stuff sometimes when they get on these kicks. SUVs do tend to be more profitable than sedans as anyone that's ever shopped for a Acadia verses a Malibu can attest to.

Time will tell if it is a stroke of genius or a blunder.

 

[GodFearinGunTotin]

I will say, if I'm working at a car plant right now, I think I'd see about getting transferred to a truck plant.

 

[bwframe]

Isn't Ford the smart American car company that didn't have to be govt motors?

 

[femurphy77]

The Fusion is a good car but they have very low resale value. The big problem right now is a number of imports are killing the domestic market with longer warranties and lower costs.

Kinda surprised GM hasn't made some similar moves.

The lower costs thing is huge. The GF bought a new '06 Honda and other than consumables the only maintenance we've had to pull on this thing is a new wiper motor because she left the wipers on and we had ice overnight. The next morning as soon as she turned the key the wipers tried to move but were frozen to the windshield and ended up stripping a gear in the wiper gearbox. I mean, the damn thing still has the original plugs in it! I do feel a little guilty about that one though.

 

[thunderchicken]

I mean, the damn thing still has the original plugs in it! I do feel a little guilty about that one though.[/QUOTE]

That's not surprising. Now, I'm not too familiar with Honda. So I'm not sure what kind of plugs (material) it has in it, but anymore most OEM spark plugs are rated as 100k mile plugs. With all the platinum and iridium plugs they just don't wear like the old copper electrodes used to.
Heck, I have seen spark plugs with 160k miles on them before they created a misfire condition. Pulled them out and the center electrode was worn down flush with the porcelain with more than .100 gap.

 

[melensdad]

The Fusion is a good car but they have very low resale value. The big problem right now is a number of imports are killing the domestic market with longer warranties and lower costs.

Kinda surprised GM hasn't made some similar moves.

GM killed itself the first time by having so many mediocre duplicates/clones with different name plates while it competed for a shrinking market.

I pretty much expect it to copy its failures of the past.

 

[SMiller]

I imagine we will see more hybrid or gas-extended-range EV trucks soon. No idling, full rated torque off the line for towing and climbing, plus quiet cruising... Also helps their MPG numbers. Win/Win.

That would be the 2018 Ecoboost, it now has start/stop and being direct injection twin turbo has instant full power.

I hate start/stop and will never own anything with it...