In its latest financial update, Ford Motor Company president and CEO Jim Hackett said Ford will be focused on “building a winning portfolio and focusing on products and markets where Ford can win.”
Hackett said the market shift to utility vehicles and commercial vehicles means it’s not in Ford’s best interests to sink more money into passenger cars.
“Where we can raise the returns of underperforming parts of our business by making them more fit, we will,” Hackett said.
“If appropriate returns are not on the horizon, we will shift that capital to where we can play and win.”
An extension of the statement from Hackett appears on a release sent out after the conference.
“By 2020, almost 90 per cent of the Ford portfolio in North America will be trucks, utilities and commercial vehicles,” the statement says.
“Given declining consumer demand and product profitability, the company will not invest in next generations of traditional Ford sedans for North America.
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“Over the next few years, the Ford car portfolio in North America will transition to two vehicles – the best-selling Mustang and the all-new Focus Active crossover coming out next year.”
As well as the announcement regarding its line-up cull, Ford confirmed it will begin hybridising its range, including the Ford Mustang, as early as 2020.
“[Ford is] making a full commitment to new propulsion choices, including adding hybrid-electric powertrains to high-volume, profitable vehicles like the F-150, Mustang, Explorer, Escape and Bronco.
“The company’s battery electric vehicle rollout starts in 2020 with a performance utility, and it will bring 16 battery-electric vehicles to market by 2022.”