Ford’s recent decision was a big example that unexpected things can also happen in the automobile industry. An announcement by Ford about phasing out most of its cars it sells in North America has created a sensation in the world of cars.
As per the latest financial release, Ford will only offer two new cars in North America over the coming years-the Mustang and an unannounced vehicle, the Focus Active which is a rugged-looking hatchback that has already debuted in Europe, and resembles the Subaru Crosstrek or the Buick Regal Tour X. The rest of the Ford range will be restricted to SUVs, trucks and commercial vehicle.
But do you know the exact reason “why Ford stop selling cars in North America”? The reason behind such a major decision by Ford is clear: declining consumer demand and product profitability which make it impractical for Ford to develop other sedans. To improve its profit margins, Ford fins the easiest way to do is by stop making cars. But what is the success guarantee for the SUVs or trucks in America? Well, trucks, by contrast, are much more expensive, and frequently get upgraded by buyers wanting specialized things.
The announcement added that it will launch its first all-electric vehicle (the Mach 1 SUV) in 2020, with 16 EV models on the market by 2022. According to auto industry forecasting firm LMC Automotive, by the end of 2022, almost 73% of all consumer vehicles sales in the United States are expected to be utility vehicles of some kind, and about 27 percent will be cars.
LMC Automotive is also expecting 84 percent of GM’s U.S sales volume will be SUVs, crossover, and trucks. Chrysler will be at 97 percent and Ford is expected to be at 90 percent.
In reference to the reduction in consumer demand and product profitability, Ford has taken this big decision about not to invest in the next generation of sedans. Fiesta, C-Max, Taurus, Focus and Fusion is no more for North Americans.
For some, it is a smart move by Ford while many believe that Ford will regret this discontinuing decision. No matter why this crucial decision has been taken by Ford but the North Americans will surely be going to miss such amazing cars by Ford. Let’s take an example of the Ford Fiesta, which is currently one of the best selling cars in the UK. The Fiesta is considered one of the best superminis around and its fun to drive and impressively refined. It is affordable by any standard.
Ford C-Max is in the market since 2003 and is a compact multi-purpose vehicle. It is predicted that the reason for Ford to discontinue C-Max production for the U.S market is the total number of sales which was only 18,390 in 2017.
The first-generation Ford Taurus will no more be available to North Americans gave the native people an unexpected shock. The demise of the Taurus in North America was a sad shock which actually made a 41,236 in 2017.
Ford Focus was redesigned for the 2019 model year on a new platform with powered new engines, new tech, and safety features. But sadly, Ford Focus will be there in Global markets before reaching the North Americans.
As per the New York Times, Ford loses money on the Focus, Fiesta, and Fusion. And according to the data compiled by Business Insider and Kelley Blue Book, the Ford F-Series, Chevrolet Silverado, and Ram Pickup have remained the top three best-selling vehicles in America throughout the first half of 2018.
Ford F-Series has remained the strong choice as the best-selling vehicle of any kind in America for the past 3 years.
It cannot be denied that Crossover SUVs are clearly the vehicles Americans want but this does not hide their love for sedans. The powerful American Ford Mustang has earned the name for becoming the world’s favorite and most sellable sports car.
Americans have always loved and will definitely be going to love the Ford Mustang for its extraordinary appearance and the exhaust sound of its engine.
Where the Ford lovers still want Ford to change its decision, it is still unclear if the company has plans for future hybrid or electric models as potential replacements for its outgoing lineup.
