Published: Fri, April 27, 2018
Finance | By Jaime Brady

Ford plans $11.5 billion in extra cuts, killing several United States sedans

Ford plans $11.5 billion in extra cuts, killing several United States sedans

What the company will spend their energy on and be marketing for the most part is it's heavy duty vehicles like trucks sport utility vehicles and cross overs. By 2020, Ford plans to make 90 per cent of its lineup CUVs, SUVs, trucks, and commercial vehicles. Ford's automotive revenue increased to $39 billion, exceeding the average projection for $37.2 billion in a Bloomberg survey.

Ford's net income rose slightly in the first quarter due largely to a lower income tax rate.

Shanks said that rising costs for commodities, such as aluminum, steel and copper, were a almost $500-million drag on Ford's performance for the quarter.

With the planned cuts, Ford will say farewell to the Fusion sedan, of which 43,176 have been sold so far in 2018 - and the Focus, of which Ford has sold 35,046 cars this year.

Ford Motor Co. said it will no longer invest in traditional sedans for its namesake brand, spelling the eventual demise of models including a long-ago best-seller, the Taurus.

It will enable the company to cut $25.5billion in costs by 2022, up from $14 billion in cuts it announced last fall. Exactly when these models will stop being sold in the market hasn't been announced.

Just two years ago, Ford was one of the most profitable companies in the global auto industry, thanks in part to robust sales of its aluminum-bodied F-Series pickup trucks. And that means not spending any money on new generations of its vehicle models, which are less profitable and increasingly less popular than its trucks.

Dez Bryant Rumors: WR Turned Down Multiyear Contract Offer from Ravens
In fact, these reports state that the Ravens wanted to ink Dez to a multi-year deal for cap space purposes . Since the 2011 NFL Draft, there has been at least one wide receiver taken in the top-15 selections.

Leeds United face backlash from fans after latest announcement regarding pre-season
"They have ambitious goals for grass-roots and elite football development that we're delighted to be able to support". Another day, another insane decision in the world of Leeds United Football Club.

NO GENOCIDE: Trump Tightens Turkey's Grip Over US Policy on Armenian Genocide
In January the French president, Emmanuel Macron, added 24 April to the French calendar to commemorate the events 100 years ago. On Tuesday, the Armenians honor the memory of people killed in the genocide, which started in Ottoman Empire in 1915.

The Model T, the '32 deuce coupe, the Thunderbird, the Mustang: For much of its 115-year history, Ford has been synonymous with cars.

Dave Sullivan, manager of product analysis for AutoPacific, Inc., called the move bold but also not surprising.

Ford is expecting pretax profit margins to reach 8% globally while 10% in North America in two years, ahead of its previous 2022 target or four years.

In North America, Ford's biggest market, the automaker's pretax profits were down $200 million to $1.9 billion.

"We are undergoing a profound transformation", Shanks said, "and are committed to taking decisive action".

While Ford's announcement provided a little bit of an initial jolt, both Haldeman and Klepeiss said they were not overly surprised by the company's decision because of how consumer preferences have changed.

Like this: