Ford's decision to discontinue nearly all of its auto models in North America within two years will leave its Canadian operations intact, since they are focused mainly on sport utility vehicles and light trucks.
Ford announced Wednesday that it plans to end production of the Taurus and other sedans to meet growing consumer demand for SUVs. Ford now expects to spend $29bn (about £25.4bn) between 2019 and 2022; it says that is a $5bn (£4.4bn) reduction on previous estimates, thanks to cost-efficiency improvements. Savings will come from engineering, product development, marketing, materials and manufacturing. That is on top of about $14 billion in efficiencies the company had already promised to achieve in the next several years.
School threat: Hacked school website prompts complete district closure. Over the next year or two, America will slowly transition into only producing awkwardly proportioned, lackluster crossovers while the rest of the world pumps out fun, exciting and inspiring vehicles.More news: Donors Pledge $4.4 Billion in Aid for Syria, Neighboring Countries
School threat: Teenager sentenced for school threat. CEO Jim Hackett said that this was to turnaround "underperforming" models. Earlier this year, James Farley, the company's president of global markets, said Ford is "shifting from cars to utilities", which have been a bigger profit driver.
Ford's revenue worldwide increased 7 percent to $42 billion for the quarter. Analysts had on average expected earnings per share of 41 cents.
The company's stock was up 2.16 percent at $11.35 in after-hours trading. The company now builds vehicles on nine platforms that arent as flexible. Shanks said the business lines losing money were mainly smaller vehicles. He adds that Ford will do "whatever it takes" to fix low-performing areas. The Lincoln brand might be affected by the austerity measures, but CFO Bob Shanks said sales are still growing.
Company to sell only trucks, sport utes and crossovers.More news: Number of active Facebook users increased despite scandals
Felker said there are about 4,000 employees at the Chicago assembly plant.
Executives talked about the need to further improve operations in Europe and South America.
"We'll restructure as necessary, and we'll be decisive", he said.More news: Leader of Karabakh separatists called on Pashinyan for dialogue
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