The only cars Ford will renew for the North American market are the Mustang, which is to be replaced with a new model in calendar 2020, and the new Focus Active, which, anyway, the company describes as a crossover SUV.
"Our intention is to raise the level of performance on all parts of the business through fitness", Shanks told reporters at Ford's headquarters near Detroit. "We can make different investments, we can partner, we can exit products, markets - and we will do that". Buried underneath various statistics is a rather blunt statement that the company will "not invest in next generations of traditional Ford sedans for North America".
In a statement, Ford said it won't invest in new generations of sedans for the North American market, eventually reducing its auto lineup to the Mustang and the all-new Focus Active crossover coming out next year.
Ford's shares traded up about 2.2% in after-hours trading Wednesday at $11.35 after closing at $11.11, in a 52-week range of $10.14 to $13.48. The company will instead focus only on high-profit models like trucks and SUVs.
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"We're seeing consumers around the world, not just in the United States, move towards more SUVs as well as trucks and that's very positive for us", Shanks said.
The decision to eliminate the entire sedan lineup in North America is drastic to say the least as even Fiat Chrysler Automobiles chose to keep the Chrysler 300 and Dodge Charger when it chose to focus on trucks and SUVs. Europe was the only other region to turn a profit for Ford.
Shanks said the Lincoln brand still is losing money in China, where it launched in 2015, but now plans to begin local production there in 2020.
President Donald Trump's announcement to impose a tariff of 25% on steel and 10% on aluminum comes at a tough time for USA automakers, which have faced flattening sales in recent months.
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Authorities are still trying to establish what the suspect did in the 35 hours between the fatal attack and his arrest. He was charged with unlawful entry, but the charges were dismissed after he completed community service.
The No. 2 U.S. automaker said it now plans to cut $25.5 billion in costs by 2022, up from a total of $14 billion the company announced to investors last fall.
Automotive segment revenues totaled $39 billion for the quarter, up by $2.5 billion year over year but automotive pre-tax margin slipped by 1.1 percentage points to 7.8%.
Ford Credit's profit jumped 33 percent to $641 million, while the automaker's fledgling mobility ventures lost $102 million, 59 percent more than a year ago.
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