https://jalopnik.com/ford-will-phase-out-all-its-small-cars-in-north-america-1825544784

The Ford Fusion, Focus, C-Max, Taurus, and Fiesta—all on the way out in North America as Ford transitions its lineup to one that is all but entirely dominated by SUVs, crossovers and trucks, the automaker announced today.
In the coming years, only the Mustang and new Focus Active mini-crossover will be in Ford's North America lineup, Ford said today in a Q1 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 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."
Additionally, the company said "Given declining consumer demand and product profitability, the company will not invest in next generations of traditional Ford sedans for North America."

One thing Ford did not say is when this will happen, though it's fair to assume that it will happen relatively quickly. All of those small cars and sedans are pretty old and due for replacements or at least updates that now won't happen. It's also fair to say the future doesn't look bright for some of our favorite performance cars, like the Fiesta ST, Focus ST and Focus RS.

The New York Times said yesterday that Ford loses money on the Focus, Fiesta, and Fusion, and Ford CEO Jim Hackett has signaled that he intends to be ruthless when it comes to raising the automaker's profits. Ford North America's profit margin was eight percent last year, or 2.7 percent less than what GM's was.

And on Wednesday, Ford reported even worse financials.

Here's the NYT:

Net income totaled $1.7 billion, up by $100 million from the same period a year earlier, and earnings increased to 43 cents a share, up by 3 cents. But the company's profit margin slipped to 5.2 percent from 6.4 percent a year earlier. Profits before taxes fell to $2.2 billion from $2.5 billion. And in every region of the world, Ford reported either a decline in profits or a loss.
In North America, Ford's largest and most important region, pretax profit was $1.9 billion, down $200 million from a year earlier. Its margin in North America fell to 7.8 percent from 8.9 percent.

Hackett has also said he intends for Ford to go all-in on America's seemingly insatiable desire for SUVs, introducing the EcoSport this year, in addition to several more SUV models planned for the future. Hackett's hoping that those models will boost profits that have, in recent years, been propped up by the company's best-selling F-Series trucks.

Ford's exit of the North American sedan market is not without considerable risk, since it makes Ford vulnerable to a rise in gas prices, which might send consumers back to cars that aren't SUVs. Like, you know, sedans.

And then there's that Focus Active, which is a mini-crossover that would compete with the Subaru Crosstrek. It looks... fine? It'll have to do, as it will soon be the only car-ish thing in Ford's North American lineup outside of a dang Mustang.

What a shit show...

Whoops, meant this for mainstreamers. Anyways, I hope this bites them in the ass.

Everything is pointing to massive fuel cost increases coming soon.

Lol Ford.

Found Off Road Dead.

Small cars, and cars in general still sell well in Canada. I wonder if we'll eventually have to break the NA Auto Pact to source cars from Europe? This doesn't bode well for dealers up here. Our average fuel price for unleaded is over $5 a gallon and rising fast.

LOL I've seen this story before. It was 1970s, and the big three floundered while Japanese companies rushed in and stole lots of market share.

Well I sort of was a somewhat Ford fan... I will no longer care about them and not notice when they die

Wow, I guess Ford Europe is DOA now.

Real world, these small SUV's don't get as good MPG as their sedan and hatchback counterparts, and they're more expensive to buy, as well. This is a sad day.


Not to mention, the price per barrel of oil has been creeping up....



The fact that Ford can't seem to make a profit on 500K at least of units a year on car models sounds like there are serious issues at Ford. Honda, Toyota, Hyundai, and even Chevrolet offer a full line of vehicles.

Eh, those of you poo-poo-ing the decision, buy more new cars?

If gas prices rise, they still will be designing/replacing these cars, just not selling them in the US.  If gas prices rise, they'll just sell them here again.

I'm not really seeing the downside from Fords perspective.

Most current new vehicle buyers, on the other hand, fuck you.

Quote from: Rich on April 26, 2018, 12:31:07 AM
Eh, those of you poo-poo-ing the decision, buy more new cars?

If gas prices rise, they still will be designing/replacing these cars, just not selling them in the US.  If gas prices rise, they'll just sell them here again.

I'm not really seeing the downside from Fords perspective.

Most current new vehicle buyers, on the other hand, fuck you.

Import them from where? China? Mexico? Europe? The fact that they flat out cancelled the Fusion's 2020 redesign, and the fact the Fiesta is basically a heavily facelifted version of the old car is not a good sign. Also, Ford definitely sold at least 500K units of it's car shaped models last year alone. Do they really think 500K people will buy an Ecosport or Escape? It sounds incredibly short sided.

It's definitely alienating any sort of new buyers. The only cheap entry into the Ford stable will be the, Ecosport which is crap. Anything fun (Save for the Mustang) will be dead.

Quote from: 2o6 on April 26, 2018, 12:45:16 AM
Import them from where? China? Mexico? Europe? The fact that they flat out cancelled the Fusion's 2020 redesign, and the fact the Fiesta is basically a heavily facelifted version of the old car is not a good sign. Also, Ford definitely sold at least 500K units of it's car shaped models last year alone. Do they really think 500K people will buy an Ecosport or Escape? It sounds incredibly short sided.

It's definitely alienating any sort of new buyers. The only cheap entry into the Ford stable will be the, Ecosport which is crap. Anything fun (Save for the Mustang) will be dead.

why would they need to import them?  Their plants are fairly flexible, they just start making whatever they want on them.  If they do it right (have thair smaller CUVs share architecture with the sedans/hatches overseas), it shouldn't be overly painful.  I understand spinning up the supply chain can be a pain, but it's not like they would have to develop a new car/plant from scratch if they need to switch.

500K probably won't switch, but I'd bet half would.  CUV/SUV sales are booming, and I'm sure even some of the current 500K are thinking about getting CUV as a next vehicle.  We'll find out soon.

The ecosport is due for a redesign soon.  And I think I read somewhere they will have an "allroad" like Focus too. 

If things stay as they are, other OEMs will follow suit. 

Yeah, but if the cars never had any intention of being federalized from the start, then the costs associated would be high.



This doesn't sound like a very smart goal, especially from an enthusiast's perspective. Axing all cars for mediocre SUV's (and the Ecosport and Escape are mediocre) seems like a crap move.


Also, I've read more than one report that Ford is also considering pulling out of Europe as well.

I believe they think in the NA market they have enough brand loyalty that their car buyers will just roll over and switch to buying more expensive (and profitable) SUVs.

Quote from: 2o6 on April 26, 2018, 01:20:18 AM
Yeah, but if the cars never had any intention of being federalized from the start, then the costs associated would be high.
This doesn't sound like a very smart goal, especially from an enthusiast's perspective. Axing all cars for mediocre SUV's (and the Ecosport and Escape are mediocre) seems like a crap move.
Also, I've read more than one report that Ford is also considering pulling out of Europe as well.

[raza]all cars will be self driving pods anyway, like in idiocracy [see ecosport], no one will be making things for enthusiasts outside of Lotus/Ferrari/Lambo/A-M[/raza]

Quote from: Rockraven on April 25, 2018, 06:02:38 PM
Whoops, meant this for mainstreamers. Anyways, I hope this bites them in the ass.

Why, and how? Nobody wants Ford sedans. The Focus and Fusion are selling half what they used to on a monthly basis. Refreshes from competitors haven't helped (Malibu, Sonata/Optima, Accord). Margins are razor thin thanks to the UAW and incentive tolerance. What do you suggest?

Widespread enthusiasm for the automobile and the act of driving in America, and Europe, is dead.  Automakers are just chasing what consumers, and regulators, want.  Smaller, lower emissions engines.  Greater fuel economy.  More connectivity with gadgets.  More autonomous driving features like auto braking, lane assist, adaptive cruise, or even wholesale autopilot so people can pay more mind to their gadgets and increased connectivity.

I have to wonder if increased CAFE standards are a factor.  SUV have much lower CAFE requirements.  If the cars aren't big moneymakers anyway, just stop selling them rather than sinking Bunches of money into them to satisfy fuel economy regulations.

Quote from: 12,000 RPM on April 26, 2018, 06:49:34 AM
Why, and how?

Crippling fuel prices and runaway inflation during the impending Trumpocalypse.

Quote from: Rockraven on April 26, 2018, 07:00:17 AM
Crippling fuel prices and runaway inflation during the impending Trumpocalypse.

Won't happen..........................................

SUVs/trucks are way more efficient than they used to be. 10 years ago a CR-V got 22MPG combined, and a base F-150 got 14 (!!!!). Now they get 29 and 22 respectively.

Plus gas is currently like $2.80/gallon... not far from the $3.90 peak from before. And crossover sales are accelerating at the expense of (slightly) more efficient sedans.

If a recession comes it's going to affect everything equally. If anything sedans might get hit worse....

Honestly after buzzing around in a Jeep Renegade rental the last couple days, I could see how people are ready to switch. I paid $7 in gas and didn't pay attention to the odometer. I believe I was getting upwards of 26mpg in stop and go city driving and I wasn't nice to the accelerator pedal. It was comfortable to get in and out of, even though it had about the same overall room as my wife's Impreza it felt more substantial. Add the "trail ready!!!" nonsense and 4WD and I can see why people would buy CUVs over economy cars.

I know some here are OK to put infants in footwells and the like but it's nice to have room for the car seat + stroller as well as groceries and whatever we get going out.

Really the big benefit of crossovers to me isn't ground clearance or hip height or any of that shit. It's just the roominess. Me and wifey's cars are the same length but her car is way roomier. Part of it is my car being RWD but even still. A Civic is about the length of the MKX and obviously nowhere near as roomy. A wagon as roomy as the MKX would be a lot longer and a pain to park in the garage. It just works

Is the average SUV/CUV any more expensive to produce than the sedan its based off of?  I know they sell for more, but is that all just profit?  The reason I ask is because this could swing Ford's average transaction price way up and cars are already getting expensive enough as it is and potentially price people out.  This would also leave a lot of markets open.  Not sure its a great idea, TBH.

It is all margin. ATPs will go up, which is not bad. The sedans were probably selling at zero margin. New cars are and always have been a luxury, so getting priced out is no biggie.

Truthfully IMO there are too many brands and offerings with not enough meaningful differentiation to justify them all. Industry has been long overdue for a purge.

You need to sell a product though and having something that's not at the lower end will leave you with multiple hot potatoes if/when the market tanks again.  It seems like Ford is also betting that car ownership moves into primarily car subscription services in the next ten years with this move as well cause then the average price doesn't mater.

They lose ~$800m/yr selling cars in NA. They've lost money on passenger cars about as far back as I can remember. If they can't consistently make money selling something, why continue doing it?  Charity?

Is that number highlighted in their financials somewhere?  Cause Jesus, that is horrible.

Quote from: mzziaz on April 26, 2018, 12:00:28 AM
Wow, I guess Ford Europe is DOA now.

Ford of Europe is not part of this decision.

Quote from: Xer0 on April 26, 2018, 09:03:28 AM
You need to sell a product though and having something that's not at the lower end will leave you with multiple hot potatoes if/when the market tanks again.  It seems like Ford is also betting that car ownership moves into primarily car subscription services in the next ten years with this move as well cause then the average price doesn't mater.

When the recession hit, everybody died. F150, Camry, Civic, Corolla, all down by double digit %ages. Ironically, you know what top 10 seller weathered the storm the best?

*drumroll*



CR-V was only down 3%. So the suggestion that crossovers won't do well when gas spikes or a recession hits isn't true based on past data.