Ford Motor Co. announced that it will no longer invest in manufacturing and selling traditional Ford sedans for the North American market.
The company said declining consumer demand and product profitability were the main factors in its decision, according to its first-quarter 2018 financial report.
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, the report says. The company is also exploring what it calls new “white space” vehicle silhouettes that combine the best attributes of cars and utilities, such as higher ride height, space and versatility.
The move comes with Ford’s goal to have almost 90% of its portfolio in North America be trucks, utilities and commercial vehicles by 2020.
In the report, the Detriot area-based company pledged to commit 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.
Other goals the company shared in its financial report include building a viable and profitable autonomous technology business with trusted and human-centered ride-hailing and goods delivery experience. It also plans to create a mobility platform and experience for customers. At the Consumer Electronic Show in January, Ford shared its goal of creating the Transportation Mobility Cloud of choice for cities and being an orchestrator of all digital connections from vehicle to street to business to home.
To read more about the future of Ford, click here to see the company’s first quarter financial report.