Ford didn't quite get out of the auto business when it released its first-quarter earnings Wednesday, but it did take a few steps closer to selling nearly nothing but sport- or crossover-utilities, pickup trucks and commercial vehicles.
Ford's head of global markets, Jim Farley, said the company is exploring new vehicles that give people the space and versatility of a utility vehicle without a fuel economy "penalty". But the company's profit margin slipped to 5.2 percent from 6.4 percent a year earlier.
In other words? Passenger cars aren't making money, and crossovers/trucks are.
Given the wholesale shift from sedans to SUVs and CUVs in the USA and Canadian markets, the Ford marque is going in big on what Jim Farley, executive vice president and president of global markets for the Ford Motor Company, calls "new silhouettes". This decision is a reaction to the dropping popularity of sedans and small cars.
Full Venom Trailer Leaks From CinemaCon, And It's Awesome
Arriving in theaters October 5, Venom stars Tom Hardy , Riz Ahmed , Michelle Williams , Jenny Slate , Scott Haze and Reed Scott. Sony's " Venom " is gearing up for release this fall, and it brings Tom Hardy fully into the superhero tentpole space.
The move is bad news for sedans, but good news for trucks and crossovers.
CFO Shanks said the company expected that commodity costs would represent a $1.5 billion "headwind" in 2018, $500 million of which came in the first quarter. The news is also a reversal of the company's previous strategy as Ford had plans for a next-generation Fusion as late as October 2017.
The company also plans to reduce costs by $11.5 billion by 2020.
But the market in the USA has shifted to larger vehicles that consumers perceive as safer; Ford's decision to pare down their model offering to trucks and sports cars appears to be servicing the demand it sees directly ahead of it. "There's more work that's underway".
Judge 'rules out' Alfie going to Rome (2)
Nothing, except the power of life and death over its subjects and the potential for embarrassment if they are proven wrong. Alfie , aged 23 months, has been in Alder Hey hospital , Liverpool , since December 2016 with an undiagnosed ...
For comparison, Ford's light truck sales rose 7.2 percent, while GM's light truck sales jumped 26.1 percent.
We have looked at every single part of the business.
The company's loss in its Asia-Pacific region was down to a slump in sales in China. Year-to-date, Ford stock has declined over 12%.
Former US President George Bush hospitalised
His doctors said chronic bronchitis is a condition more prevalent with age and can aggravate the symptoms of pneumonia. A few months before that, he spent 16 days recovering from pneumonia.
- Madonna Loses Tupac Auction Lawsuit
- Martha Jefferson Hospital Receives A Grade for Safety
- What data breach? Facebook shows the world how fan appeal means business
- Dallas Officer Dead, Two Others Critical In Arrest Of Shoplifting Suspect
- Uzbekistan to attend SCO foreign ministers' meeting in Beijing
- Sessions won't recuse self from Cohen probe
- Thousands Of Jubilant Napoli Fans Welcome Team After Juve Win
- To-play 'Battle Royale H1Z1' hits PS4 very soon
- How Analysts Rated Redcentric plc (LON:RCN) Last Week?
- IPL: Mumbai Indians set 168-run target for Rajasthan Royals