It is definitely a sign of the times.
The Ford Motor Company has announced that they will cease production of most of its car line over the next four years.
For those that follow the automotive industry this should not come as a big surprise.
Car sales across the board have been slumping over the past few years as consumer preferences have shifted to SUV’s and crossovers.
The announcement means the elimination of the Fusion midsize, the full size Taurus, Cmax hybrid, and the Fiesta subcompact.
The company does plan to continue producing the iconic Mustang.
For those fans of the company luxury sedans, the Lincoln brand is not going anywhere. The Lincoln, while not a best seller, is still a money maker and has a loyal following.
The decision to stop car production is based on the company’s attempt to become more profitable and eliminate $11.5 billion in costs to reach a targeted profit margin ahead of schedule.
Chief Financial Officer, Bob Shanks, said the company now expects to save $25.5 billion by 2022.
Looking at the books, company officers made the decision to eliminate slow selling, low-margin car models and focus on the more lucrative sport utility vehicles and pickup trucks.
By 2020, the plan is for 90 per cent of Ford vehicles to fall into those categories.
The decision has made a favourable impact on investors.
The company made $1.74 billion from January to March, compared to $1.58 billion during the same time last year.
While SUV and crossover sales now take a big share of the market, this doesn’t mean you’re going to see the traditional car style automobile disappear.
Other auto companies are filling that void with sedans and compacts while steering away from the truck segment.
The Ford F-150 series is still the most popular truck on the market and the best selling vehicle in North America.
While it does get competition, most notable from GMC and RAM, other manufacturers tend not to try to produce a vehicle that will go head to head with the F-150.
The over all plan is to focus on reducing costs and producing vehicles that will generate a healthy long term profit for the company.