Why is Ford getting rid of its sedans and hatchbacks?

Article by Christian A., on May 3, 2018

A few days back, we discussed that Ford’s plan involves retiring most of its compact cars and sedans and replacing them with SUVs. However, there would be two small models that will remain in the lineup -- the Mustang and the Focus Active, at least for the United States. So what is the automaker’s reason for doing so? Well, the answer is as simple as this - money.

To support that statement, Jim Hackett, Ford’s CEO said in his interview with Automotive News that they have decided to just focus on the healthier part of the business, referring to trucks and crossovers. In the first quarter of 2018 alone, the company’s sales of $3 billion all came from this segment. Soon, 90 percent of all sales will come from this.

The CEO added that they will soon deal with the parts of the company that destroy value. He, of course, is speaking of sedans and hatchbacks. In fact, by 2022, they hope to uncover $25.5 billion in savings with the switch to SUVs and trucks. This is double the amount identified back in October ($14 million).

Ultimately, Ford has already decided to put an end to the production of small cars in the United States. This will be implemented within only a few months. This May, the Focus will be axed, while the last Taurus sedan will roll off the production line in March of next year. The demise of the Fiesta is expected later on in May of 2019.

As for the Focus Active that will be sold in the United States, production of the said model will take place in China, starting sometime in mid-2019. This means that buyers could get their hands on this high riding hatchback in 2020. As for the Mustang, it will remain the same for the next few years, but a Mustang inspired electric SUV is bound to follow. It will be called the Mach 1 and will make its debut sometime in 2020.

The fact that Ford has decided to axe most of its smaller models is mainly because of money, and for good reason. It is a business after all and it will have to answer to the demands of its customers. But then again, who knows for sure how long the SUV craze will last. Ford’s idea of sticking to just pickups and SUVs may waver in the future. By then, Ford will be forced to offer its sedans and hatchbacks once again. That’s just how it is.

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Topics: ford, sedan, hatchback

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