Ford ditches cars and goes all in on trucks and SUVs
Ford is switching gears in North America and focusing solely on truck and SUVs, according to Executive Vice President Joe Hinrichs, who told FOX Business 90% of the fleet will be trucks and SUVs.
“By 2020 we believe that is where the market is going,” Hinrichs said to Maria Bartiromo during an exclusive interview on “Mornings with Maria” on Thursday. “If you look at historically what is taking place in the U.S. industry in the last 10 years, consumers are moving more towards SUVs.”
In April, the Dearborn, Michigan-based automaker announced that it will almost exclusively stop selling sedans in North America and only sell the Mustang and Focus Active.
“We believe we can give people better options at the same price points -- the things they want -- but also give them flexibility and the fuel economy they are looking for,” he said.
Ford reported better first-quarter earnings and revenue than expected and plans to save around $25 billion in cost cuts and efficiencies by 2022. It also expects to boost profit margins to 8% by 2020, two years sooner than it previously expected.