The company has previously hinted at scaling back in its consumer auto department in favor of two other markets: trucks and SUVs.
Ford predicted that by 2020, nearly 90 percent of its portfolio would be trucks, SUVs and CUVs, and commercial transportation like vans and police cars. Ford CEO, Jim Hackett has announced that going forward, the company will be focusing only on pick-up trucks, SUVs or commercial vehicles. Ford says it is exploring "white space" vehicles that combine the best attributes of cars along with utility attitude and character such as good interior space, versatility and high riding stance. Cars sales have been declining industrywide.
The first Ford Fusion built in the United States comes off the assembly line at Ford Motor Company's Flat Rock Assembly Plant August 29, 2013 in Flat Rock, Michigan. Ford's larger cars can weigh more and take up more of the road than than some of its smaller crossovers. Profits before taxes fell to $2.2 billion from $2.5 billion.
"Where we can raise the returns of underperforming parts of our business by making them more fit, we will", said Mr Hackett. As part of the move, Ford will be phasing out sales of traditional sedans and hatchbacks in the North American market.
Revenue rose 7 percent to $41.96 billion. Ford said this is the future, and it means a total refresh of the existing lineup of SUVs and crossovers. And in every region of the world, Ford reported either a decline in profits or a loss.
In North America, Ford's biggest market, the automaker's pretax profits were down $200 million to $1.9 billion. They will also produce an EV by 2020 that will be a "performance utility", and that there will be 16 battery-electric vehicles by 2022.
Ford says that it "maintains the highest transaction prices of any full-line automaker - $36,300 per vehicle".
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.