Why Ford Stopped Making Cars

Table of Contents

1. Introduction
2. Ford's Decision to Stop Making Cars
3. Factors at Play
   1. Analytical Data
   2. Pressure to Jump on the EV Train
4. Ford's Focus on SUVs and Trucks
5. The Success of Ford's SUVs and Trucks
   1. The Ford Bronco
   2. The F-150
6. Ford's Future Plans
7. Conclusion
8. FAQ

Ford's Decision to Stop Making Cars

In 2018, Ford Motor Company announced that it would be cutting sedan production and phasing out most of its new car models in North America over the next couple of years. This decision shocked the world, as Ford had long been known for its passenger vehicles like the Fiesta, Fusion, and Taurus. However, the company had been observing a decline in sedan sales for a very long time, and this decline had been accelerating over the last few years. As a result, Ford made the decision to focus entirely on trucks and SUVs.

Factors at Play

There were a few factors at play in Ford's decision to stop making cars. One of them was that the company was merely conforming to analytical data. Ford observed that sales of trucks and SUVs had increased significantly compared to sales of small cars and sedans. However, the most significant variable was the pressure to jump on the EV train with the rest of the world. As companies push toward competing with the likes of Tesla, Ford felt that it couldn't compete with the very best of the ICE or the BEV world by working on gas-powered cars.

Former Ford CEO Jim Hackett spoke during a call regarding the news and said that Ford was going to "feed the healthy parts of our business and deal decisively with the parts that destroy value." For Ford, dealing decisively meant canceling sedans in the U.S altogether. Kumar Galhotra, president of Ford North America and vice president of Ford Motor Company, spoke with Ford Authority executive editor Alex Luft and said, "The sedan segment itself has been in decline for a very long time, and that decline has been accelerating over the last few years."

Galhatra continued, "Our industry is very resource-intensive. We have to Create a particular product and the factory to build it and all the tooling in our suppliers that can run into billions of dollars. The question then became, in that environment of a finite amount of capital, where do we want to invest that capital? Do we want to invest it in a declining segment, or do we want to invest it in a growing segment?"

Ford's Focus on SUVs and Trucks

Ford's decision to focus on SUVs and trucks was a smart one. These vehicles are in high demand and can be sold profitably. Chrysler did the same thing, discontinuing the midsize Chrysler 200 and the small Dodge Dart so they could use the factory area to produce more Jeeps and Ram trucks. In doing so, they made more money in 2021 with less overall sales.

The Success of Ford's SUVs and Trucks

Ford's decision to focus on SUVs and trucks has paid off in the long run. The Ford Bronco, for example, has been one of the most popular cars on the planet since its introduction for the 2021 model year. Despite experiencing numerous production problems, Ford had to stop accepting orders for the 2022 model year due to demand rapidly exceeding its production capacity. The vehicles that were produced are now selling for significantly more than MSRP, and there are no deals or incentives to be had. The Ford Bronco Raptor followed suit and sold out rather quickly for the 2022 model year, while the regular model was also one of the top 20 fastest-selling new vehicles in 2022.

There's also the F-150. This vehicle was the ideal pickup truck when it was released, and today it still sells like crazy. Ford reported that it sold more than 640,000 F-series vehicles throughout the entire year of 2022. It has been the best-selling truck in America for 46 years running and the best-selling car overall for 41 years. The impressive statistic is that if You take all the sales of F-150s and spread them over a year, Ford sells one of these big trucks every 30 seconds.

Ford's Future Plans

Ford is now focusing all its efforts on EVs and hybrid vehicles, with probably more of a push toward EVs, particularly now that some regions of the world are debating possibly outlawing the sale of gas-powered vehicles in the future in an effort to combat global warming and other environmental issues. As a result, Ford will ultimately bring sedans back to the market. They simply won't be the gas-powered cars you've been used to for so long. With the exception of the Mustang, Ford doesn't look to be finished with internal combustion engine vehicles in general just yet, as there are still some internal combustion engine and hybrid truck and SUV models that haven't hit the market yet. However, it's fair to say that the company won't be spending much more time in the internal combustion engine market. There is just too much pressure to evolve thanks to the popularity of EV vehicles.

Conclusion

Ford's decision to stop making cars was a smart one. The company observed a decline in sedan sales for a very long time, and this decline had been accelerating over the last few years. As a result, Ford made the decision to focus entirely on trucks and SUVs. This decision has paid off in the long run, as Ford's SUVs and trucks have been some of the most popular cars on the planet. Ford is now focusing all its efforts on EVs and hybrid vehicles, with probably more of a push toward EVs. Ultimately, Ford will bring sedans back to the market, but they won't be the gas-powered cars you've been used to for so long.

FAQ

Q: Why did Ford stop making cars? A: Ford stopped making cars because the company observed a decline in sedan sales for a very long time, and this decline had been accelerating over the last few years. As a result, Ford made the decision to focus entirely on trucks and SUVs.

Q: What was the most significant variable in Ford's decision to stop making cars? A: The most significant variable was the pressure to jump on the EV train with the rest of the world. As companies push toward competing with the likes of Tesla, Ford felt that it couldn't compete with the very best of the ICE or the BEV world by working on gas-powered cars.

Q: Will Ford bring sedans back to the market? A: Yes, Ford will ultimately bring sedans back to the market. They simply won't be the gas-powered cars you've been used to for so long.

Q: What is Ford focusing all its efforts on now? A: Ford is now focusing all its efforts on EVs and hybrid vehicles, with probably more of a push toward EVs.