Ford to Cease Production of Sedans as it Looks to Boost Profits

How Ford Earnings Soothed Investors

Responding to a shift consumer demand in favor of SUVs, crossovers and pickup trucks, Ford said it planned to trim its North American auto portfolio down to just two models: the Mustang, and a new compact crossover called Focus Active that is scheduled to debut in 2019.

Cutting its slow-selling sedans and hatchbacks will serve to free up even more capital for light truck and mobility development.

Speaking to reporters on Wednesday as the company reported first-quarter results, Chief Financial Officer Bob Shanks said "we have looked at every single part of the business".

Ford plans to cut $11 billion in operating costs and $5 billion in capital expenditures between 2019 and 2022.

Ford reported first quarter net income of $1.7 billion in 2018 and a 7 percent revenue increase from 2017.

This news comes as part of Ford's "fitness" plan, outlined by CEO Jim Hackett previous year, in which he said the Blue Oval would cut its operating costs by $14 billion by 2022.

Ford's North American pretax profit fell 9.2 percent to $1.94 billion, with commodity costs accounting for more than the entire decline.

The automaker's pre-tax profit fell 14% to $2.2 billion for the quarter.

More news: Two QB talk remains for Cleveland Browns

Ford stock rose almost 3 percent in after-hours trading Wednesday to $11.40.

In its statement, Ford said it will rely exclusively on a two-car lineup, the new Focus Active-a raised, body-cladded version of its all-new Focus hatchback (a crossover, in other words)-and the Mustang. We are determined to turn this business around right throughout the whole company.

Ford Motor Company, one of the most storied automotive brands, said it will stop producing full and mid-size sedans, as it shifts towards battery-powered SUVs, crossovers and light trucks. Analysts had on average expected earnings per share of 41 cents.

Ford Credit's profit jumped 33 percent to $641 million, while the automaker's fledgling mobility ventures lost $102 million, 59 percent more than a year ago.

The company is committed to increasing profit margins by focusing on more popular trucks and SUVs going forward.

"The threat of tariffs, particularly we believe on steel, had an impact on market prices", Shanks said during an interview on "After the Bell".

The move comes just a few weeks after the automaker announced plans to have eight utility vehicles on sale by 2020, including a new Bronco and an all-electric performance model codename Mach 1.

Related News:

  • Dallas Police Officers, 1 Civilian Shot at Home Depot

    Dallas Police Officers, 1 Civilian Shot at Home Depot

    Two police officers were shot and critically wounded outside a home improvement store in the USA state of Texas , police said. The man had a handgun and shot two responding officers and a store loss-prevention officer, the Dallas Morning News reported.
    President Naidu rejects opposition impeachment motion against CJI

    President Naidu rejects opposition impeachment motion against CJI

    He found that the press conference by the Opposition members after submitting a notice to the Chair not only denigrated the office of CJI, but also violated Rajya Sabha rules.
    Every word of Pep Guardiola's speech to mark Man City's title win

    Every word of Pep Guardiola's speech to mark Man City's title win

    Then, turning to the players who have won 28 league matches already this season (not forgetting the league cup). It will likely be a very good take a look at for all of us to see what is going to occur subsequent season'.
  • Facebook reports strong earnings despite privacy scandal

    Facebook reports strong earnings despite privacy scandal

    The scandal, at least for now, hasn't resulted in any significant loss in users for the California-based social media giant. The question for analysts will be whether the declines are truly Facebook's own design or a reflection of user preference.
    Milind Soman to tie the knot with Ankita Konwar: See pics

    Milind Soman to tie the knot with Ankita Konwar: See pics

    Photos of the soon-to-be-married couple have been shared by their friends on Instagram, who are also attending the wedding. Till then, watch the joyous couple dancing at the celebration. "The decor was a mix of Assamese and Marathi cultures".
    RUDY RETURNS: Giuliani VOWS to End Mueller Probe Within 'Weeks'

    RUDY RETURNS: Giuliani VOWS to End Mueller Probe Within 'Weeks'

    He also intensified his public attacks on the Mueller investigation, calling it "an attack on our country". Since then the White House has had trouble recruiting attorneys to bolster the team.
  • BMW's iX3 concept heralds electric expansion

    BMW's iX3 concept heralds electric expansion

    It has a more powerful battery that offers better performance and range combined with lower weight and volume. With the fast-charging stations generating up to 150kW, it can be fully charged in just 30 minutes, says BMW.
    Surgeon General choice -- Will Jackson run VA, or vice-versa?

    Surgeon General choice -- Will Jackson run VA, or vice-versa?

    But after reports surfaced that his nomination could be upended by the allegations, the White House sent out the statement early. Jon Tester's committee staff is reviewing multiple allegations of a "hostile work environment". "(M) ost feel that Capt.
    Conway Pushes Back on Media Attack Involving Her Husband

    Conway Pushes Back on Media Attack Involving Her Husband

    By trying to make herself look like a victim, Conway also conveniently ignores that Trump repeatedly targeted former FBI Deputy Director Andrew McCabe's wife , Jill McCabe, and even told McCabe to "ask his wife how it feels to be a loser".
  • Real Madrid vs. Bayern Munich in UEFA Champions League

    Real Madrid vs. Bayern Munich in UEFA Champions League

    Real are only third in La Liga, with arch domestic rivals Barcelona just one win away from sealing the title. Robert Lewandowski is Bayern's main goal threat, however, they possess attacking options all over the field.
    After Weeks of Mayhem, US Throws Aluminum Industry a Lifeline

    After Weeks of Mayhem, US Throws Aluminum Industry a Lifeline

    For example, Rusal's Aughinish alumina plant in Ireland buys bauxite that Rio mines in Guinea and sells to smelters across Europe. Rusal declined to comment on requests from worldwide media, while Deripaska's spokeswoman wasn't immediately available.
    NBA Playoff Betting: Minnesota Timberwolves vs. Houston Rockets

    NBA Playoff Betting: Minnesota Timberwolves vs. Houston Rockets

    The Minnesota Timberwolves host the Houston Rockets in game 4 of their Western Conference Playoff series on Monday night. Chris Paul was outplayed by Jeff Teague in game 3, and the Rockets have to expect more from their All Star point guard.


Most liked

'Schoolhouse Rock' composer and Pa. resident Bob Dorough dead at age 94
Born in Arkansas, Dorough was able to make a living as a pianist and composer from the time he moved to NY in 1949. Dorough has also produced three albums with the prestigious jazz label, Blue Note Records. "I'm just a bill".

Acadiana plans to take part in National Drug Take Back Day Saturday
Last fall, 77 pounds of medicine was collected at MTSU collection events, said Lisa Schrader, director of Health Promotion. The DEA can only accept pills and patches, and will not accept liquids, needles or sharps.

Danish inventor Peter Madsen jailed for life for Kim Wall's murder
The case has gripped Denmark ever since Wall failed to return from a trip on Madsen's self-built Nautilus submarine on August 10. The cause of death has never been established. "He had fresh scratches on both forearms and dried blood under his left nostril".

WhatsApp is banning under-16s in Europe ahead of GDPR
WhatsApp revealed the changes in a blog posting , in which it pointed to the imminent introduction of the tougher privacy laws. The biggest change is that WhatsApp users , who previously had to be 13 years old, can no longer use the messaging platform.

Liverpool Boss Jurgen Klopp Offers Injury Update On Alex Oxlade-Chamberlain
If we can say that already before the scan, that's never good news so that means for us it's a massive blow, of course ", he said. The season is not that long anymore. "I'm a very positive person and still hope it only feels bad, but is not that bad".

Google's G Suite redesign draws on AI to kill email clutter
Users can also add an option to encrypt the email using a passcode which the receiver needs to enter in order to access the email. Therefore this ensures that if the recipient's account were ever to be hacked, this email would no longer be accessible.

Watch Liverpool star Mohamed Salah explain his Premier League goals
The 25-year-old keeper has admitted that his future at the Spanish club is uncertain. And you can't say he doesn't deserve it.

Andrew Landry wins maiden title at Valero Texas Open
Given time to reflect, the 26-year-old will likely look back on the final two holes where nerves appeared to get the best of him. He is slated to tee it up again next week with Talor Gooch in the Zurich Classic team event.

Thunder Thrashed in Game 3 Loss to Jazz
He was instrumental in helping the Jazz come back from 12 points behind with a 20-4 run in the first half. "It's huge. Donovan Mitchell added 22 points for Utah, which took a 2-1 lead in its first-round series with Oklahoma City.

Giants-Belt-Long Plate Appearance
In fact, as the at-bat unfolded, they seemed to become even more resolute. "Like, this can't be happening", Maldonado said. Said Angels shortstop Andrelton Simmons: "That was impressive, huh?" Regardless of the end result that was fun to watch.

Was Barbara Bush partially to blame for Donald Trump's presidency?
Former US first lady Barbara Bush , the wife of former President George HW Bush, passed away at age 92 on Tuesday (April 17). But it wasn't the fact that she attended solo that got the internet talking, with the president nowhere to be seen.

Marc Short: Democrats are being pressured to vote against Mike Pompeo
He also expressed frustration that Pompeo had not previously mentioned his visit to North Korea in conversations with him. Trump has said he was doing some last-minute lobbying to bring Paul back to the fold, however.

Barack and Michelle Obama, Melania Trump & More Attend Barbara Bush's Funeral
Jim McGrath, the spokesperson for the former president's post-White House years, tweeted out a picture of the socks Saturday. The church is adorned with sprays of yellow garden roses, yellow snap dragons, antique hydrangeas and other flowers.

Deputies ambushed, killed inside Florida restaurant
A construction worker who witnessed the shooting said that Highnote emerged from the restaurant "calm as can be", WFLA reported. The investigation is ongoing at this time with no apparent motive or indications as to why the tragedy occurred.

Calgary trucking company still shut down as Humboldt crash investigation continues
On April 10, the Humboldt Broncos board of directors took over the GoFundMe campaign and contributions continued to pour in. As of the latest update provided by the team Tuesday, nine people remain hospitalized, with two in critical condition.