Over the next few years, Ford will be phasing out all sedans (Fusion, Focus, Taurus, Fiesta) with exception of the Mustang and one other cross over vehicle (Ford Active) from the North American market. The company is citing a general decrease in demand and profitability as their primary reasons for discontinuing the sedan lines. Ford will now be focusing their resources and energy on producing SUVs and trucks.
With SUV’s improving in gas mileage, customers are moving away from sedans. Besides gas mileage, people are attracted to the extra room, versatility as well as having a car that is higher off the ground.
Industry forecast projects that the market share will be 70-30 in favor of trucks and SUV’s. So, it makes sense that companies would invest less in the sedan market when it is being consistently outperformed by trucks and SUV’s.
Source: Ford.com (Ford Fusion)
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