Executive Explains Decision To Discontinue Ford Sedans In North America

While many have questioned Ford’s decision to discontinue sedans in North America, sales numbers have done a good job of explaining the move for some time now. While many still love sedans and dislike crossovers and SUVs, it’s clear that the majority of Americans do not feel that way. So while other automakers like General Motors continue to work toward a sedan-free lineup, Ford is already there. But it’s still worth asking – why can’t Ford continue to produce sedans like other automakers?

“They key here is, not just for us, the sedan segment itself has been in decline for a very long time, and that decline has been accelerating over the last few years,” Kumar Galhotra, President of Ford North America and VP of Ford Motor Company, told Ford Authority executive editor, Alex Luft, in a recent interview.

“Our industry is very resource-intensive – we have to create a particular product, and the factory to build it, and all the tooling and 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 obviously chose the later, and has since redirected its capital into a host of new products. “So we made the decision to invest in a growing segment, like the Bronco, like the Mach-E, like Bronco Sport, so we have a lot more product coming that will more than offset the loss of sedans. It was just, as the marketplace not buying those vehicles, it just didn’t make sense to continue investing in it,” Galhotra explained.

Shortly after announcing its plans to kill off Ford sedans, The Blue Oval announced that it intended to bring the rugged Focus Active hatch to North America, but later nixed that idea as well. “It goes back to a declining segment, and the realization that, when we looked at those numbers – that might not be the best choice,” chimed in Said Deep, head of Ford North America product communications.

In recent months, we’ve seen all Ford sedans be discontinued, one by one, starting with the Ford Fiesta and Focus, followed by the Taurus, and most recently the Fusion along with the Lincoln MKZ. Similarly, the 2020 model year will be the last for the Lincoln Continental. That leaves the Ford Mustang and Ford GT as the only two cars of any sort left in The Blue Oval’s North American lineup.

There are other new models on the way to expand Ford’s crossover, SUV, and truck lineup, including the aforementioned Ford Bronco, Ford Bronco Sport, and Ford Mustang Mach-E, as well as the forthcoming Ford Maverick compact unibody pickup, which should help make up for the loss of sedans somewhat. But for those that simply want to buy a new Blue Oval sedan, well, that’s not in the cards any longer.

We’ll have more on Ford’s changing lineup very soon, so be sure and subscribe to Ford Authority for the latest Ford business news and 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

Brett Foote

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  • All this explanation is nonsense. Ford makes a huge mistake not selling sedans. There are people (like me), who no matter what will never buy an SUV or a Crossover. After 30 years buying Ford, I'm leaving to other company because I simply don't like SUV's or Crossovers. I work to buy what I want and like. Not to adapt. The market is cyclic and Ford will loose a segment of the market when trends change again as that market will become familiar with other brands. Ford should keep at least one sedan in its limeup. Ford competitors can. I don't see why Ford can't. The explanation given in this article is pure nonsense.

    • Thank goodness you’re not a CEO of an automaker, while I can understand your affection for sedans,the current market and trends doesn’t support the investment. Ford currently has a lot of debt and should correctly focus on its core strengths, which are trucks! Why waste your resources on segments that aren’t paying the bills? It is indeed sad to see sedans go in North America but I cannot argue with their decision from a business perspective.

      • The current market supports the investment. Sales figures of the Fusion shows it. I'm talking of letting just one sedan in Ford/Lincoln lineup in order not to let a market segment go. If the complete Ford competition can, I don't see why Ford can't. Ford competition has been aware that market is cyclic and trends change all the time and this SUV & truck fever will change too.

        • I have owned Lincoln sedans since 1968. I also owned a 1966 4dr Lincoln Retractable Hardtop. My current car is a 2017 Lincoln MKZ Hybrid that I absolutely love. I get 40 mpg and enjoy the comfort of the car. It’s getting time to buy another car but I guess I will not be buying another Lincoln since they no longer offer sedans. I’ve driven Lincoln crossovers and SUVs and I just don’t like the ride so as much as I hate to part with Ford motor company after so many years, I will have to go to an automobile manufacturer that still manufactures sedans. I do understand that it’s a business decision, but the fact still remains that I want a sedan.

    • I wholeheartedly agree with you. And like you, After thirty years of owning nothing but Ford's I am being forced to take my business elsewhere. It's very unfortunate that the large majority of the population are morons And insist on buying suvs and crossovers that they don't need. Especially when the cost of gas and everything else is an all time high. Unfortunately, we have reached a point in our society where Idiots lead the way!

  • I drove the Tempos, Tracers, Focuses (Foci?) and Tauruses (Tauri) of the world and now feel comfortable in an Explorer XLT and adding either a Corsair or Edge to the lineup next year. Some people refuse to evolve, they are known as NIMBY'S or Karens.

      • Spot on. My wife is no Karen. The entry threshold of an SUV simply isn't doable for her. She is one of millions that need because of medical reasons, a 4 dr sedan.

    • So people that don't want to pay more for an ugly lifted box on wheels that costs more and uses more gas are being labeled in such a way from people like you because they don't conform to your way of thinking? How lovely and so typical of your generation!

    • Mmmm, drive an Elephant or a Cheetah? If the experience of actually driving doesn't mean much, buy the SUV...if it does...buy a car.

    • I'm no Karen or a NIMBY but a 72YO retiree that has tried SUVs - Escape in particular - and found the ride and handling to be below that of my Fusion Hybrid. Gas mileage was 26 MPG on an Ecoboost unit with less than 10K miles on it. My hybrid gets 36+ even in Winter with heavy tires and less than optimal operating temps.

      Too bad Ford decided they don't need my money. I'll just give it Hyundai or someone who will appreciate my business.

  • I see more imported sedans from South Korea than from any other brand, since they sell for better quality and for a lesser cost than European, Japanese, and domestic brands. So the customers who buy them obviously will not buy SUVs or crossovers. By 2040 the U.S will only sell trucks, and all the others will be imported.

  • Just for you it makes great sense to build a sedan, Fusion sales are stronger than Mustang but you kept the Pony because of name and kill off the sedan. If Ford want to sell SUV’s Trucks, and Mustang fine kill Fusion, Focus, and Taurus. On the other hand what good for Ford is not always good for Lincoln which should keep the MKZ aka Zephyr FWD and build a new RWD Continental Flagship. Lincoln wasn’t build off of SUV’s but Sedans. You don’t want to build them out of GREED, the Mustang is getting the SUV chassis which means Continental can use it, MKZ would pick up the sales of Fusion which would double its sales for those who want a Ford / Lincoln sedans

  • I love my F-150s (have 2), as well as an old Ranger. They are workhorses on the farm, and haul everything from kayaks to cattle... Groceries, lumber, furniture, etc. But, we still have the NEED for small and mid size sedans. We have a Fusion, Mazda3, Miata, and 2 Hyundai (Elantra and Sonata) in the driveway. If Ford wants to stop sedans, I'll continue to buy sedans from Mazda or Hyundai. I refuse to give money to Chevrolet or Chrysler! Ford may increase profits but this won't maintain their North American market share as the dominant player. The smarter play would be to keep at least one low-profit sedan in the line-up for entry level purchasers. Profit may not be there, but volume sales would make up the margins, and would gain new Ford loyalists.

  • Please just bring the Focus ST and/or Fiesta ST to the states and I’ll be happy. It doesn’t need to be the base Focus or Fiesta just the ST or even RS models. Australia has a large demand for SUVs as well yet they still get these hot hatches. Why not just do what Volkswagen is doing with the Golf by importing the GTI and R models only. Plus if Europe can have our Mustang why can’t we have their ST hatches?

  • In Europe, Ford will need to keep making sedans as it is not entirely an SUV market. So, it would not have been that difficult to have a good sedan in the line-up. The problem for Ford is design and quality, they need to substantially improve both. There are swaths of hard scratchy plastic, even in the latest products like the Puma and Kuga (Escape). Whilst the Puma is a good design, the Kuga is well, not very good looking. Peugeot in Europe are leading the way in terms of design, setting the benchmark for good looking vehicles. Don't get me wrong, I love Ford vehicles and drive a Fiesta Active, but I have to say it is noisy inside, plenty of scratchy plastics and is slowly falling behind in terms of design. On the plus side, the engine and driving dynamics are excellent. I really do not think it would cost that much to improve the quality of Ford vehicles in areas that you can see, such as the internal sills on the doors. They did put some softer materials in the Puma front door sills, but left it horribly plastic in the back. This to me is pure cost cutting and as an ex-Ford employee, I would like them to do better.

  • Why not re-visit the modular chassis / powertrain especially with their continuing drift toward electric power. It seems that the electric model would lend itself very nicely to this flexibility in manufacturing. Then with a modular platform, one could create cars, and SUV exteriors and interiors to fit them, thereby reducing the overall costs of having dedicated lines with their associated costs. This would also assist with change over as purchasing habits shifts...which eventually they will...hopefully!

  • This is about money which = GREED. There’s away to build for all customers needs and wants and still make money. Ford or GM is not losing anymore money than the Import Brands are