Ford dealers will see big changes in their product lineup in the next few years as most cars are eliminated from their lineup. The automaker will also make big cuts in its marketing and sales departments, which include sales incentives.
Ford plans to cut more than 80 percent of its new car model lineup in the next few years, leaving only the Mustang. The Taurus, Fiesta, Fusion, C-Max and Focus will all disappear. The automaker assures its dealers that it will still have entry-level vehicles, though CUVs and SUVs are generally more expensive than passenger cars.
That means more profit for dealers and for Ford, but higher costs for consumers. Part of the point of an inexpensive entry-level vehicle is to bring a first-time buyer into the Ford family. Ford dealers will watch closely to make sure the new lineup does that.
Certainly the market has shifted dramatically in recent years toward SUVs and light trucks – even among Washington-area buyers, who have historically preferred cars. Automakers must plan several years ahead, and Ford’s latest move assumes that gas prices will stay low for the next several years.Download Bulletin PDF