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Ford accelerates cost-cutting plan, will drop most United States sedans

The Mustang and the upcoming Focus Active crossover are poised to become the only cars Ford sells in the North American market.

But more specifically it will save Ford close to $25 billion USA in operating costs between now and 2022.

Ford isn't going to invest in the next generation of its "traditional" saloon (sedan) line-up in the States.

The company says it hopes to work on some new vehicle types that combine the best attributes of cars and trucks.

New auto sales data tells the story.

The announcement, made during Ford's first quarter earnings report, reflects the new reality among today's automotive consumers.

On Wednesday, Ford expanded on this by adding that the remaining sedans it will be producing will be limited to the Mustang and the Ford Focus Active, a hatchback that's set to debut in 2019. In 2017, the company's pretax profit fell to $8.4 billion from $10.3 billion. But kiss goodbye to the Fiesta, Focus, Fusion, Taurus, and C-MAX.




The decision comes as sales of passenger cars continue to decline while sales of SUVs and crossovers continue to climb.

Ford's revenue worldwide increased 7 percent to $42 billion for the quarter.

Wall Street applauded the move, sending Ford shares 2.5 percent higher in early Thursday trading. In addition to putting hybrid-electric power trains into high-volume sellers in its SUV and truck line, the company will roll out a "performance utility" vehicle powered by an electric battery in 2020.

Jim Farley, Ford president of Global Markets, announced on Medium on March 15 that trucks and SUVs would be making up most of Ford's offering.

Last May, Ford's board called on Hackett, a former chief executive of the office furniture-maker Steelcase who had been running Ford's new businesses related to autonomous vehicles, to whip the company into shape.

Ford finds itself on a road similar to the route Fiat Chrysler Automobiles NV followed to pass Ford in North American profitability.

Shanks said the Lincoln brand still is losing money in China, where it launched in 2015, but now plans to begin local production there in 2020.

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