Ford Discontinuing Sedans

Ford is making a bold move by discontinuing all of their sedan models.  The only car that will remain in its lineup is the Mustang. The more efficient and size-friendly Fiesta, Focus, Fusion and Taurus will all be done away with by 2020. Ford CEO, James Hackett seems confident in this decision because it is what the consumer wants, or so he believes. In his eyes, having mostly crossovers, SUV’ and trucks will bring more profit in than including sedans in the vehicle lineup.

It’s no shocker that some models are tired and in need of some updating. Ford would just rather skip that process altogether and do something completely unheard of. In contrast to Hackett, former CEO Alan Mullally believed that sedans would be the thing to help keep Ford afloat during economic hardships and skyrocketing gas prices.

What backs up Ford’s plan is the fact that modern SUVs are built more like sedans and less like trucks. Their new lineup will be likened unto taller sedans with more room but similar engines and MPG. The old Ford Explorer was designed and ran more like a truck and had the poor gas mileage to go with it. Now, more efficient engines are being put into larger cars with eco boost and hybrid technologies, making them easier to accommodate consumers with better fuel economy. Ford claims that if trends change and consumers come back to sedans, then it will not be a hard for them to transition back.

With such boldness, there is bound to be concern from the dealerships. People fear that this move will leave Ford dealers without an affordable bracket of cars that allow young buyers or those on a budget to purchase a new vehicle. SUVs and trucks are out of a lot of people’s price range. Without it, profits could drop even further. How likely are consumers to buy cars that they know will be discontinued by the following year? That leaves dealerships with excess inventory and no profit.

It’s important to have different price points. It allows consumers to get introduced to the brand at a younger age. An 18-year-old probably can’t afford the payment on an F-150, but he can afford a Focus. Letting him develop a brand loyalty now, will keep him in the family, leading to multiple sales throughout his lifetime. The EcoSport and upcoming Ford Active are supposed to fill the affordability gap, but they’ll still run you a few grand more than a Fiesta. 

Every 10 to 15 years auto companies are due for some reconstruction to stay current with consumer desires and technological upgrades. Ford can be commended for observing what consumers are buying most and trying to capitalize on that. Unfortunately, it is not a guarantee that this kind of move will increase profits or attract more buyers. They feel that they can combat environmental factors by implementing new transmissions, new vehicle designs, hybrid additions and better fuel economy. Crossovers do seem to be most popular in today’s market, so it will be interesting to see how this plays out in the dealerships. I wonder if Ford sedans will make a comeback in 2021.