Ford stops Fiesta, Fusion and Taurus production in North America
- Ford has confirmed that it will disengage from unprofitable market segments, not only in Europe (as seen in our latest Auto-Analysis) but also in North America, where the Fiesta (B segment), Fusion (D segment) and Taurus (E segment) sedans will be phased out by 2020 and not replaced.
- The C segment Focus will be the only remaining sedan at Ford, but it is unsure whether this model will be replaced in the mid-2020s. Mustang should also survive this “mass slaughter“, as part of the sports car segment. Ford's goal is to have nearly 90% of its sales in North America in 2020 made up of pick-ups, SUVs and cargo-based utilities.
- This strategy of lightening ranges and maximizing profitability is very similar to what Sergio Marchionne announced shortly before his death last June, for his FCA group.
- For Inovev, this is not an offensive nor a conquering strategy, but rather a defensive one, because it focuses on a smaller scope keeping only high-margin products, and leaving the lost market share to the Japanese and Korean competition. The GM group could in turn adopt the same strategy in North America, which would create a great opportunity for Asian OEMs to further increase their influence.
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