In its statement, Ford said it will rely exclusively on a two-car lineup, the new Focus Active-a raised, body-cladded version of its all-new Focus hatchback (a crossover, in other words)-and the Mustang.
"Ford said it expected to reduce sales, marketing, engineering and other costs by $11.5 billion between 2019 and 2022".
Ford F, +2.93% shifted focus on "building a winning portfolio" of vehicles, by which it meant no more of its slow-selling sedans at least for North America.
The company announced Wednesday that it "will not invest in next generations of traditional Ford sedans for North America".
Ford said it is exploring new white space vehicle silhouettes combining attributes from cars and utility vehicles, it plans to bring five new vehicles between the smallest and largest utility vehicles.
The announcement came as Ford said it earned a first-quarter profit of $1.7 billion, a 9% increase compared to the same period past year.
By 2019, Ford will also introduce a brand new Focus Active in North American countries. In 2017, the company's pretax profit fell to $8.4 billion from $10.3 billion. Where would new customers turn for an entry-level offering when Ford's North American dealerships no longer carry a single sedan?
Specifically, Ford is getting rid of the following models: the Fiesta, Focus, Fusion, C-Max, and Taurus. Crossovers and SUVs have quickly come to represent more than half of the total industry's USA sales, while sedans and small cars have been sinking.
Ford's revenue worldwide increased 7 percent to $42 billion for the quarter. They plan to only produce the Mustang and Focus Active crossover vehicles as well as trucks, SUV's, and commercial vehicles.
Last May, Ford's board called on Hackett, a former chief executive of the office furniture-maker Steelcase who had been running Ford's new businesses related to autonomous vehicles, to whip the company into shape. Sure, buyers may pay around 20 percent more, but that price hike is an unavoidable reality no matter what style of vehicle you're in as new technology continues to be added.