By CRM Staff
Toronto, Ontario -- April 30, 2018 -- While releasing its first quarter financial results for 2018, Ford announced it would be ending production of its smaller vehicle models in the coming few years, aside from two: the Mustang and the Focus Active crossover, which is expected next year. The company anticipates that by 2020 this transition will be 90% complete.
“Given declining consumer demand and product profitability, the company will not invest in next generations of traditional Ford sedans for North America,” writes the company in its financial results press release. “The company is also exploring new “white space” vehicle silhouettes that combine the best attributes of cars and utilities, such as higher ride height, space and versatility.”
Ford CEO Jim Hackett explained the decision by saying, "We are committed to taking the appropriate actions to drive profitable growth and maximize the returns of our business over the long term. Where we can raise the returns of underperforming parts of our business by making them more fit, we will. If appropriate returns are not on the horizon, we will shift that capital to where we can play and win."
The company’s financial results showed a decline in car sales by 14.2% in 2017, according to Repairer Driven News. The online news source believes this move could result in longer repair times for shops working on the company’s larger vehicles. As it previously announced 11 new vehicle releases this year, repairers should be even more diligent in checking the OEM’s repair procedures with every repair.
For more information on Ford, please visit ford.ca.