Ford Motor Co. plans to stop selling all sedans in North America and has nearly doubled its cost-cutting target by 2022 from the plan it laid out only six months ago. The automaker said it will either fix or eliminate unprofitable portions of the business -- and trim sales and marketing expenses.
Ford said the only cars it will keep in North America beyond their current generations are the Mustang and the Focus Active arriving in 2019. The automaker said it now expects to achieve an 8 percent global profit margin by 2020, two years sooner than planned. It upped its five-year cost-cutting goal to $25.5 billion, from the $14 billion projected by CEO Jim Hackett in October.
Ford Chief Financial Officer Bob Shanks wouldn't say whether Ford would need to eliminate jobs to achieve the additional $11.5 billion in cost cuts. Nearly half of the cuts would be in sales and marketing -- through incentive optimization, reduced advertising and other actions -- with the rest coming from engineering and product development, material costs, manufacturing and information technology, in that order.