Ford loses more than $800 million a year by selling small cars in US and the new CEO doesn’t want this number to go higher
Ford recently announced that the company will discontinue sedan models from its line up as buyers preference changes from sedan to compact SUV models. The company rolled off the final Focus and C-Max of the production line at Michigan plant. Even though there was no public announcements or events to celebrate this as manufacturers usually celebrate this occasion as it’s a milestone for the company.
Ford Focus and C-Max were the back bone of the company when they were introduced in US. In 2008, Mark Filed then president of the company said that they are going to create a new foundation of small, fuel efficient cars and crossover which will set standards in quality, fuel economy, features and refinement. But the company couldn’t continue the success for long time.
Both these products were doing well but some mistakes happened like misstating the efficiency of C-Max hybrid not once but twice and the low gasoline prices mean that people preferred other products more. The Focus sales were at its peak in 2012 as the company sold 2,45,922 units and C-Max hit the sales chart on fire in 2013 with 35,210 units.
Since 2012, the sales of Focus were constantly going down every year. But the name plate has lots of following in US thanks to performance models as people still prefer blue oval others because the engine and chassis were tuned really well. But the Focus name will come back as a crossover model soon and this model will be imported from China.
Ford C-Max name plate won’t make a return as the company is not going to introduce next generation in US. The C-Max became so popular in US thanks to the hybrid engines. With the help of hybrid and plug-in-hybrid models popularity, Ford became the second largest selling hybrid vehicles in US behind Toyota.
The Focus and C-Max are not the only products that are going to say good bye soon as the American manufacturer will discontinue Fiesta, Fusion and Taurus also. The company loses more than $800 million a year by selling small cars in US and the new CEO doesn’t want this number to go higher which is why he took this decision. Soon Ford will introduce more crossover and SUV models in US to improve sales.