Ford Motor Co’s profit target might be hurting the company’s clients more than was previously estimated by the market spectators as this automobile manufacturer is looking to cut several sedans from the lineup. Among models which may be cut be the manufacturer are also Fusion and Taurus. With these models cut Ford is hoping to save as much as $25.5 billion in 4 years. According to the recent report the company is now on the way to reach 8 percent profit margin way ahead of schedule.
For now, all the powers of Ford’s officials are aimed at convincing investors that the recent changes are good for the well-being of the company. New CEO of the firm says that getting rid of slow and bad selling models and shifting the main focus to sports cars and massive trucks is one of the few ways the company has in order to boost profits.
The CEO of Ford said in an interview yesterday “We’re going to feed the healthy part of our business and deal decisively with areas that destroy value. We aren’t just exploring partnerships; we’ve now done them. We aren’t just talking about ideas; we’ve made decisions.”
Last quarter was the toughest for the company since the big fall of 2017 when its North American Operating Margin fell from $11.3 percent to 5.8 percent in a single quarter.
North American market of Ford will probably suffer the most from the cuts as the company is not going to invest in new generation of sedans, reducing the market to Mustang and Focus models. This means that American roads will see a lot less of Fiesta and Fusion models.