Why did Ford discontinue car production and go for SUVs?

OCTOBER 16, 2020

Over the past few years, Ford has made a complete turnaround in the automotive market, and at least in America, it has moved away from hatchbacks and sedans to SUVs.

For example, in Argentina, Fiesta and Focus said goodbye last year and it should not take too long for the last units of Mondeo to arrive, after the cessation of production at the Mexican plant where it was produced until recently. Thus, in our country, only Ka, in its hatch and sedan silhouettes, and Mustang are the only cars in the oval range.

In North America, especially in the United States, something similar happened and at present only the star pony car (Mustang) and the GT, became the survivors.

In line with this situation, Kumar Galhotra, executive director of Ford North America and vice president of Ford Motor Company, in an interview conducted by Ford Authority, clarified the panorama and revealed the reasons for this turn.

"The key here is, not only for us, the sedan segment itself, which has been in decline for a long time, and this situation has accelerated in recent years," Galhotra began.

"Our industry consumes a lot of resources: we have to create a particular product, the factory to build it, and all the tools and our suppliers, which can cost billions of dollars. So the question became, in that environment, a finite amount of capital, where do we want to invest that capital, do we want to invest it in a declining segment or do we want to invest it in a growing segment? ", continued the manager.

Seeing how the oval strategy was developed, clearly, in response to the previous question about capital, we see that the brand leaned towards the second option: "So we made the decision to invest in a growth segment, like the Bronco, like the Mach-E, like the Bronco Sport, so we have many more products on the way that will more than compensate for the loss of sedans. Simply, since the market wasn't buying those vehicles, it just didn't make sense to keep investing in it," he continued.

There was even talk recently of the possibility that Ford might launch Focus Active in the United States, but Said Deep, director of product communications for Ford North America, cut all kinds of corners: "It goes back to a declining segment, and the realization that when we look at those numbers, that might not be the best option.

In North America, the decline in car offerings began with Fiesta and Focus and continued with Taurus, Mondeo and also the Lincoln line as the MKZ, although in the next time the Continental will also disappear.

In addition to the new bets, in addition to the Bronco line and Mustang Mach-E, it is expected that some of the sedan customers will be absorbed by Maverick, the compact pick-up that the American company prepares.

Source: Parabrisas

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