In a surprising announcement, Ford Motor Co. said Wednesday that they will stop making most of its North American car lineup. This will include getting rid of all cars in the region during the next four years except for the Mustang sports car and a compact Focus crossover vehicle, reports The Washington Post.
This is part of a broad plan to save money and make the company more competitive in the quickly-changing marketplace. CEO Jim Hackett said the decision was due to declining demand and profitability. Ford will not longer sell the Fusion midsize car, Taurus large car, CMax hybrid compact and Fiesta subcompact in the U.S., Canada and Mexico.
The U.S. market has seen a dramatic shift towards trucks and SUVs. The company found another $11.5 billion in cost cuts and efficiencies, which brings the total to $25.5 billion expected by 2022, Chief Financial Officer Bob Shanks said, according to the Post.
The savings will come from engineering, product development, marketing, materials and manufacturing. Ford also wants to raise its operating profit margin from 5.2 percent to 8 percent by 2020, which is two years earlier than a previous forecast.
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