Ford Exec Says This Is Why It Stopped Selling Sedans
Have you ever looked at Ford’s current lineup and wondered where all the sedans went? If you have, stop what you’re doing and keep reading. In a recent interview with Ford Authority, this executive gives us an inside look at why Ford stopped focusing on sedans and started investing in trucks and SUVs.
When did Ford stop selling sedans?
In 2018, Ford announced that it would wind down both the production and sales of passenger cars in the U.S. At the time, Ford said it would stop doing so in favor of its money makers: trucks, SUVs, and crossovers. Come 2020, Ford explained that 90% of its North American sales would consist of larger vehicles that offered lower fuel economy.
After Ford’s announcement that it would no longer sell sedans in the U.S., the automaker axed well-known passenger models like the Fiesta, Fusion, and the Ford Taurus. Today, the only remaining sedan-esque vehicle among Ford’s lineup is the Mustang, which is hardly a sedan at all.
Why did Ford stop selling sedans?
When Ford first broke the news in 2018, the automaker explained that the decision came down to numbers. Former Ford CEO Jim Hackett told analysts during a call regarding the news that Ford was “going to feed the healthy parts of our business, and deal decisively with the parts that destroy value.”
For Ford, dealing decisively meant forgoing sedans in the U.S. altogether. Kumar Galhotra, President of Ford North America and VP of Ford Motor Company, shared with Ford Authority executive editor, Alex Luft, that “the sedan segment itself has been in decline for a very long time, and that decline has been accelerating over the last few years.”
Galhotra continued, “Our industry is very resource-intensive – we have to create a particular product, and the factory to build it, and all the tooling and our suppliers – that can run into billions of dollars. The question then became, in that environment, of 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?”
With that, Ford decided to invest in its lineup of trucks and SUVs. Galhotra told Ford Authority, “So made the decision to invest in a growing segment, like the Bronco, like the Mach-E, like Bronco Sport, so we have a lot more product coming that will more than offset the loss of sedans.”
Ford’s lineup of rugged trucks and spacious family haulers
What does Ford’s lineup look like now? Just as the automaker promised, it’s packed with trucks and SUVs. From the iconic Ford F-150 to the large and in charge Ford Expedition, Ford really did deliver.
Perhaps, though, the most exciting non-sedan addition is the 2021 Ford Bronco. Discontinued way back when in the late ’90s, the Ford Bronco will be returning to dealerships for the 2021 model year.
Of course, the Ford Bronco isn’t the only recent addition to the Ford lineup. Nixed from the lineup in 2011, the Ford Ranger has since made its return and is a J.D. Power Quality Award Winner.
And if your heart is set on a Ford sedan?
In the end, Ford’s gamble paid off. And while that might sound like bad news for sedan lovers, there are other options available. Whether you opt to buy used or decide to try something new, say a new Ford SUV, today’s auto market offers no shortage of cars, trucks, and SUVs to choose from.