In a bid to reach an 8 percent profit margin by 2020, Ford is looking to save some USD 11.5 billion (~PHP 600 billion) and plans to axe most of its passenger car line-up (at least for North America) including the Fiesta and Focus.
In a statement via Bloomberg News, Ford said:
Given declining consumer demand and product profitability, the company will not invest in next generations of traditional Ford sedans for North America…Over the next few years, the Ford car portfolio in North America will transition to two vehicles—the best-selling Mustang and the all-new Focus Active crossover coming out next year.Ford’s plan coincides with American market preference which is moving more towards SUVs and crossovers and away from traditional passenger cars. Overall, investors are happy about this move, although it’s not without risks since Ford risks alienating its car owners and conceding market share.
Although Ford hasn’t announced if their move to effectively pull out of the North American passenger car market will affect its operation elsewhere, the carmaker has seen the same signals in both Europe and Asia Pacific. In the Philippines, for example, the Everest, Ranger, and EcoSport already accounts for 97 percent of their car sales.
The American carmaker also warned that Ford’s profit margin will “bottom out” this year. The Asia Pacific region, a growth market for Ford, will likely lose money in the second quarter due to the lack of new vehicles before rebounding in the third quarter.
Source: Bloomberg News
Poor bastards... They were ruined because of the dual clutch transmission fiasco. Never should have done that in the first place.
ReplyDeleteIts so easy to sit and watch other people fail, criticize and even call them bastards.
DeleteThats is innovation, its the risk we Filipinos never take, thats why we still drive around tricycles and jeep. Dyan tayo magaling.. Puro kayabangan.
Uhh nope. That's faulty engineering. Ford themselves acknowledged the issue.
DeleteIts notthe dct sedan sales are falling everywhere as people prefer suvs and pickups
ReplyDeleteWhat so big deal?
ReplyDeleteIt means that people can no longer buy the higly underrated ford focus. The overrated mazda3 and civic will remain stronger in the market than ever I guess.
DeletePuwede na gawing PUV ang mga Ford dito sa Pilipinas at lease Modernized na.
ReplyDelete