Ford announced Wednesday that it plans to end production of the Taurus and other sedans to meet growing consumer demand for SUVs. By 2020, almost 90 percent of the Ford portfolio in North America will be trucks, SUVs and commercial vehicles, including electrified versions.
U.S. sales of large cars have declined by 34 percent in the last five years, and there is “significant unmet demand” for Explorer as consumers abandon traditional sedans for SUVs according to officials.
That lack of demand also included the Ford Police Interceptor sedan. The sedan was once projected to take over 75% of the police car market but it was the SUV version that soared. Just last year, the SUV took 51% of the market and it continues to rise.
Ford also is phasing out the Fiesta, Fusion and C-Max sedans over the next few years. The remaining Ford car portfolio will feature the Mustang and an all-new Focus Active crossover coming out next year.
Ford announced revenue of $42 billion and net income of $1.7 billion during its first quarter earning call Wednesday, both of which were up year over year and beat analyst expectations. The automaker is targeting even better results going forward with a strategy that entails allocating capital towards the products “where we can play and win,” Jim Hackett, Ford’s president and CEO said in a news release.