DETROIT — Ford, backing up its promise to double-down on vans and SUVs, is killing the Fiesta subcompact, Fusion midsize sedan and Taurus massive sedan, it introduced Wednesday.
It will go ahead with solely two cars in its lineup: the Mustang and a brand new hatchback referred to as the Focus Active. The Ford Active as a beefy small car that can have the next profile like an SUV, however nonetheless be thought of a automotive.
The plan is consistent with on just lately outlined by CEO Jim Hackett to introduce more vans and SUVs, the automobiles that consumers need probably the most. Cars gross sales have been declining industrywide.
Ford will use the surplus capability created in its vegetation by automotive fashions which might be ending to introduce new truck and SUVs. For occasion, the brand new Ford Bronco off-roader is on the way.
“We will refresh our entire lineup of traditional crossovers and SUVs that everyone knows, like Explorer and Escape,” mentioned Jim Farley, Ford’s president of worldwide markets. “And then we’re going to be introducing and taking capital and redeploying it for also new silhouettes, products that give the customers the utility benefits without the penalty of the fuel economy.”
Fiesta and Taurus may disappear from the lineup as quickly as subsequent yr. The just-introduced model of the Fusion, which performs within the midsize automotive section that used to be the business’s hottest till SUV fervor took maintain, will possible be round for a pair more years.
Ford reveals the brand new mannequin of the favored Fusion on the North American International Auto Show in Detroit.
Detroit Free Press
The announcement got here as Ford mentioned it earned a first-quarter revenue of $1.7 billion, a 9% improve in contrast to the identical interval final yr. For the primary quarter, the Dearborn automaker earned 43 cents per share, beating Wall Street analysts’ common expectations by 2 cents per share.
Ford’s income worldwide elevated 7% to $42 billion for the quarter. The 9% improve in quarterly revenue could be virtually solely attributed to a drop within the automaker’s efficient tax charge to 9% from 28.6%, Ford officers mentioned.
The automaker’s pre-tax revenue fell 14% to $2.2 billion for the quarter.
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