Customers’ trend change happens in 10-15 years time which is why the company is also moving in same direction
Ford recently announced that the company is going to discontinue its sedan models like Fusion, Fiesta, Taurus, C-Max and Focus sedan in US market as they are moving forward to crossover and SUV models. But Ford dealers are not happy with the decision to discontinue sedan models as they are priced significantly lower than current range of crossover and SUV from the American brand. This will certainly back fire as lack of entry level models won’t help Ford to bring in more numbers.
Most of the dealers have lots of stock still left with them and with this new announcement they are not expecting customers to buy it as they already know that these models will be discontinued soon. According to dealers, customers look at their budget and decide whether they want sedan or crossover not the body style which is important. Another important factor is that fuel efficiency of sedan models is better than crossover. Some dealers are even saying that Ford lineup will be limited to Mustang only in few years time.
But Ford CEO Jim Hackett is thinking differently as he want 90 percent of all vehicles sold in America to be either truck, SUV or commercial vehicles which bring more profit for the company. His decision is completely different to former CEO Alan Mullally’s in 2000 as he decided that sedan models will help Ford to survive during those difficult economic times. Jim Farley, Ford president of global markets confirmed that the new decision won’t mean that they will leave affordable car segment, instead of sedan body style they will offer crossover and SUVs.
Farley said that customer trend changes as earlier people preferred station wagons then moved to minivan and then to sedans which again changed to crossover and SUV models. This change happens in 10-15 years time which is why the company is also moving in same direction. But experts are predicting that this decision will hurt Ford in the long run as lack of entry level models will impact profit.
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Ford EcoSport is the entry level SUV model for the company in US but it is priced above Fiesta and Fusion. The American manufacturer recently revealed new generation of Focus hatchback and sedan but these models won’t come to US as they are planning to bring rugged version of Focus. Ford is also working on a small compact SUV which will be announced in March next year and it will be launched in US within next two years time.