April 26 (UPI) — Ford Motor Co. will cut out all but two of its passenger cars for its North American lineup due to waning demand for the vehicles, the company said.
The motor gamut of trucks, sport-utility vehicles and crossovers will remain — but Ford’s Fiesta, Taurus, Fusion and regular Focus models will disappear within the next two years.
The automaker said by 2020, almost 90 percent of the Ford portfolio will comprise of trucks, SUVs and crossovers and commercial vehicles.
The only two cars that will stay in Ford’s North America market — the Mustang and Focus Active, a hatchback that will debut next year.
“Given declining consumer demand and product profitability, the company will not invest in next generations of traditional Ford sedans for North America,” Ford said in a statement.
The company is also exploring new vehicles that combine the most popular features of cars and utility vehicles, like rider height, space and versatility.
Ford CEO Jim Hackett said the automaker is committed to driving profitable growth and maximizing business returns for the long term.
“Where we can raise the returns of underperforming parts of our business by making them more fit, we will,” he said. “If appropriate returns are not on the horizon, we will shift that capital to where we can play and win.”
Ford made the announcement as it reported first quarter earnings of $1.7 billion, which is up 9 percent from the same period last year. The earnings report also shared details of an improved capital efficiency plan that will cut $5 billion in expenditures by 2022.
“This quarter is in line with expectations and consistent with our outlook for the full year, but we know we can, and must, do better,” said Ford Executive Vice President Bob Shanks. “The entire team is focused on improving the operational fitness of our business.”