Ford cancels all sedans and hatchbacks for United States market

Ford has announced it is dropping all but two of its passenger cars in a move to cut costs and meet the demands of consumers that increasingly opt for larger vehicles.

By "2020, nearly 90 percent of the Ford portfolio in North America will be trucks, utilities and commercial vehicles", the automaker said.

The company that put Americans in cars affirmed Wednesday that those vehicles are going the way of the Model T and it will focus ever more on trucks and SUVs.

Ford this week announced it would withdraw almost all of the cars it sells from the North American market (via TechCrunch).

Ford says the only auto models it plans to keep are the Mustang and the upcoming Ford Focus Active, a crossover that's slated for 2019.

• Heroin: Two saved from overdoses at rest stop. "Where we can raise the returns of underperforming parts of our business by making them more fit, we will". Its margin in North America fell to 7.8 percent from 8.9 percent. In March, light truck sales surged 16 percent, posting a 9.5 percent increase for the first quarter.

The company reported a first-quarter net profit of $1.74 billion, or 43 cents per share, up from $1.6 billion, or 40 cents per share, a year earlier.

"Ford is committed to rolling out battery-powered cars that could compete with Tesla Inc.in 2020 and offering hybrid versions of its most popular sports cars, trucks and SUVs", observes Christina Rogers for the Wall Street Journal. Yahoo Finance put the average estimate of analysts at US$0.41 a share.

Investors reacted favorably to the earnings.

The company's stock was up 2.16 percent at $11.35 in after-hours trading.

The cost savings will come by optimizing digital marketing and discounts on vehicles, as well as putting multiple vehicles on five flexible global architectures in the next few years. Of course, there are way more people who pay attention to vehicles like the Mustang and F-150, but the OEM has a strong history in the sedan and coupe space so it's worth pouring one out for the company. The company will cut $5 billion from capital spending from 2019 to 2022, meaning it will only have $29 billion instead of $34 billion to burn. The company will spend less on low-performing areas such as cars.

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