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Ford Exec Says Automaker Will Exit Other Vehicle Segments If Needed

Ford has made some major changes in recent months, including splitting itself into two entities – Ford Blue for ICE vehicles, and Model e for EVs – as it continues to revamp its existing lineup. Recently, CEO Jim Farley said that the automaker’s existing ICE lineup is too complex, and we know that at least one model – the Ford Edgewill soon be discontinued, while Farley has also hinted that others, such as the Ford Escape, may follow suit as the automaker focuses on its “Icons”, commercial vehicles, and EVs. Another Ford exec – Kumar Galhotra, president of Ford Blue – won’t rule out the automaker exiting other vehicle segments, as it did with sedans in the U.S., too.

“Yeah, what a great question, we can look at our recent history on when we have made that type of decision first, where we exited the low margin, or unprofitable sedan business and that turned out to be the right decision because the benefits we’ve seen from that decision were great,” the Ford exec said while speaking during a recent fireside chat with BNP Paribas, a commercial banking company.

“We use that capital, both human capital engineers, et cetera, and dollars to repurpose and put them into products like the Bronco with much higher returns, and Maverick which has been a great, great success. So we are constantly assessing our portfolio for the best returns and we will take action, like, as I said, as we have in the past when appropriate, and we see a better way to serve our customers and better returns. I can’t go into specifically which vehicles first, but I think our record speaks for itself that we will take those actions when necessary.”

Currently, Ford is focused on its Icons as far as the ICE side of the business goes, which includes the Ford Bronco, Ford F-150Ford Mustang, Ford Explorer, Ford Transit, and Ford Ranger, which are long-running nameplates with a good bit of salesroom success. That list recently expanded with the addition of the Ford Maverick and Puma, all of which are due to receive more variants moving forward, as well as all-electric models in some cases, though Farley recently stated that traditional ICE customers may not necessarily “like” those EVs.

We’ll have more on the future of Ford’s vehicle lineup soon, so be sure and subscribe to Ford Authority for non-stop 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.

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Comments

  1. David Dickinson

    In fact, why bother selling vehicles at all? Just own the IP for all the data and its collection and become a data broker. That’s high margin.

    The reason Ford should have stayed in the sedan business is that it takes more business acumen and discipline to make a low margin segment work. This business discipline pays higher dividends as personnel who start on the rough-and-tumble side move up through the ranks. Ford’s abject quality failure demonstrates what happens when you only go for the easy, low hanging fruit. You get fat and lazy and, as the saying goes, “pigs get fat and hogs get slaughtered.” Ford’s quality slaughterhouse is attracting world-wide attention. It won’t be long until that effects future sales.

    Reply
    1. Steve Ketterer

      While I agree with much of what you are saying, right now our government is having the most “effect on future sales” by a long shot.

      Reply
  2. Ryan T

    I think it will be a HUGE mistake eliminating the Edge and Escape models. We have owned both and were very good quality vehicles. Our local power authority where I live was recently asking for all unnecessary lights to be turned off during one of our heat waves. We have maybe 5% EVs in our area. What if 70-80% have EVs? The infrastructure is not ready yet in my area!

    Reply
    1. JDE

      I think the issue is both are not targetted at the more profitable Offroad looking segment. The Bronco sport and even the maverick will likely take up the slack of the loss of the Escape. Both are based upon the escape and share drivetrains even, so Farley’s excuse is not valid here really, just an excuse to axe a currently ho-hum vehicle. Same with the Edge. most likely they are hoping for an EV alternative and leaving the 4 door SUV segment in ICE to the Bronco. the demand of the bronco allowing them to sell at or above MSRP versus heavily discounting the Edge.

      Reply
      1. Mike Dietsche

        Well I do not have all the stats but I know from being in the auto world mist of my years that eliminating some of your sedans could be a mistake. My years in the auto field see that the majority of moms are not going to want to have to use some type of truck for doing her running with her children and other times either. I know the big thing is EV well first our country needs to be set up so people do not need to worry about where do I stop to charge up if I am on a linger trip for my children or even several friends. I have a feeling this could hurt Ford. But I guess time will tell. Is Ford prepared if that happens do you want to be a truck type company only. The technology of EV’s has a way to go before they stop making sedans for family homes.

        Reply
    2. Nonspecific Motors

      Lol they are NOT eliminating them, they are being more creative with them to get them to sell. How does anyone not see the Mustang Mach E replaces the Edge and the Bronco Sport replaces the Escape? Ford is starting be like Mopar selling only vehicles that are a hit, and they are right for it. I’ve never owned a Ford but the only Fords I would own is one of their “Icons”. Ford quit sedans, because FWD sedans are import companies’ “Icons”. Tbh, I was gm, then went Mopar, and if Ford keeps it up, I might become a Ford man. If downsize from my Jeep Gladiator, I will consider the Maverick. If I lose the bed only, I will give the Bronco AND the Wrangler a look. The Ranger doesn’t do it for me for some reason, maybe because it looks too “euro” right now. The Ranger refresh coming soon could change my mind.

      Reply
    3. Falcon

      I agree Ryan T. I’ve had an Escape since 2009. Just recently leased an Edge. Those vehicles are more ‘car like’. They suit my needs of hauling around our grandkids and their gear. Seems like Ford wants to put me in a truck of some sort whether I like it or not, and an over priced electric vehicle is out of the question. Won’t happen.

      Reply
    4. Joe S

      “What if”? Instead of asking a rhetorical question and then assuming an answer out of thin air, provide your own answer based on evidence. What is the peak grid load during a heat wave, and what is the off-peak load? How much load would 100% EVs add to the grid? For the U.S. as a whole and every car a Model 3 at 25 kWh/100 miles, the load would increase by 10%, from 3.8 to 4.2 TWh per year. If off-peak demand is more than 10% below peak demand on heat wave days, then the grid can handle it.

      Reply
  3. The Gentle Grizzly

    As they eliminate more segments customers go elsewhere.

    Meanwhile, how many Ford dealers are researching other franchises? How many are in talks with, say, Hyundai, Kia, or even Mitsubishi?

    Reply
  4. DaveJ9

    Ford already eliminated the premium luxury segment by starving Lincoln of being world-class. In the Ford World- Rule 1: Lincoln can’t be better than Ford. Rule 3: Mustang, F150 and Bronco are King. Rule 4: Lincoln can’t have more performance/speed than Ford.

    Glad I bought a Cadillac CT6. Cadillac remains America’s only Premium Luxury Brand.

    Reply
    1. yeet1331

      Today’s Lincoln vehicles are absolutely gorgeous with incredible interiors yet they could still be just a little better to blow away competitors. Frustrating to see they don’t want to put in just a little more effort.

      Reply
    2. JDE

      I mean, sadly the Chrysler brand still held on with just a sedan and a minivan, so what is Lincoln’s excuse again?

      Reply
    3. Nonspecific Motors

      Ford should eliminate Lincoln all the way and just make premium versions of Fords, with the exception of Navigator. Kill the Expedition and move the Navigator over to Ford. Everything else at Lincoln is worthless. I hope you’re reading this Ford, FORD NAVIGATOR.

      Reply
      1. Nonspecific Motors

        They could even treat the Navigator like Jeep is treating the Wagoneer/Grand Wagoneer, and mike Navigator it’s own premium unique thing. Don’t put Ford badges on it anywhere, Just a stylized compass on it, give it its own unique symbol, so people ask what it is.

        Reply
  5. NCEcoBoost

    Seeing how ridiculously overpriced the whole lineup has become (Ford is near the top of the list for ridiculous overpricing), during a recession nothing will sell, so just shut down the whole ship while you’re at it.

    Reply
  6. Big Burning Gas Steve

    Hey Jim! Exiting low margin unprofitable sedan business???? Do you ever look at Hyundai? They have three sedans, Elantra,sonata,accent, some gas some hybrids topping 54 mpg!!!!! WTF! Why don’t you guys get some real designer’s, and don’t get me started with the Genesis brand of luxury cars!! These guys are eating your lunch! All electric by 2035! Good luck!

    Reply
  7. John Coviello

    You guys forget, Farleys only excuse for living is to DRIVE FORD OUT OF BUSINESS !!!!!!! It’s happening and will be history soon !! They have been F^*KING Lincoln for years. The Corsair and Nautilus where NEVER anything more than cheap Fords with the Lincoln name. And this comes from a happy muli-time buyer of Lincoln top of the line sedan and Aviator owner.

    Reply
  8. Bruce Holberg

    My sense is that with ICE engineering about to be starved, a “new” Mustang about to launch that is a warmed over current model, and the fact that once again the Challenger (and I think the Mach e) outsold the Mustang, it may be one of the product lines Farley is talking about. That would be tragic.

    Reply
    1. Tigger

      Farley was supposed to expand the Mustang lineup. And no the Psuedo “Mustang” Mach E does not cut it.

      Reply
  9. Bob

    Its amazing that Ford gave up on the Lincoln brand. No sedans? Why can GM figure out how to sell Cadillacs with a profit? Why can’t they make a beautiful Mk. VIII? Why not a nice two seat convertible? I guess they have figured that they wouldn’t sell enough of them.

    It is sad to hear that they want to drop the Escape. It appears they are cutting out all of the cheaper vehicles from the lineup. The vehicles that the average family can afford are no longer available….Escape, Focus, Fusion, Taurus !!! If you want a Ford, you will have to step up to the high rent district
    F-150s, Expeditions, etc….

    Reply
  10. John Coviello

    I agree with Bob above. I would luv to see a new, reasonably full sized, Mark VIII with a 3.5L EcoBoost plus all of the goodies !!!!!!! I had a 1977 Cartier Mark V, that I thought was a little too big and had a government F^*KED up 460 cu. in engine; AND LOVED IT !!!!! Although, I have always thought the Mark III was better looking. But hey, they will never listen to us customers.

    Reply
  11. Dave

    Bed. Bath and Beyond brought in a new CEO who nearly bankrupt them. Maybe it’s time to give these guys their “Golden Parachutes” and bring in some car guys. If I ever get my new Escape, it will be the last Ford I ever buy because I don’t need a “Commercial” vehicle.

    Reply
    1. Tigger

      I think it is time for Junior to retire as well. Ever since he took over as Chairman it has been a downward trajectory for Ford and one crises after another.

      Reply
  12. William

    I was considering buying either an Edge or an Escape Hybrid. Now I won’t buy either. What a big mistake Ford is making by eliminating these models.

    Reply
  13. FrankK

    S650 deserves to be utilized better than just a Mustang only. Do a longer wheelbase and gives us a proper Lincoln LS replacement! Make the wheelbase a little longer/wider and give us What a Continental Should Be. Throw in a Mark 9 and Thunderbird that are not suv’s and that seals the deal.

    Where is the Celestiq counterattack from Lincoln? Make it 1950’s all over again when Eldorado Brougham and Continental Mark II were the ultra-top shelf expensive halo vehicles.

    Stockholders should demand better for the Lincoln Brand. Buying Ford stock so I can “make waves”.

    Reply
  14. grumpyunk

    As fuel prices continue to rise, along with inflation, when the bottom drops out of the porky cash cow F150 sales, what will FoMoCo do then? Can’t sell econoboxes to anyone as they don’t produce any.
    Can’t sell sedans to anyone as they only sell in overseas markets.
    Cut out the entry level models that lure people into the showroom, so they can’t even count on recent college grads to even shop Ford.
    Good job guys. Kick those customers down the street to your competition. BMW, Mercedes, Toyota, Honda, Kia, and Hyundai all seem to make a decent profit in the ‘non-icon’ market. Hmm, guess Ford can’t compete, so they cut and run. When allocating resources, do they include streeting 8,000-odd employees as being ‘re-allocated’?
    If you are not IN a market, every sale is one that you GUARANTEE someone else will make. Icon vehicles do NOT sell to all consumers, and those consumers will go to your competition. You may make it easy on yourself to only go to successful markets, but you lose the competitive edge you would have gained by actually trying to compete. Good luck.

    Reply
  15. Richard F Klima

    Farley has got his neck stuck out so far with EV’s that Ford cannot fund the refresh or redesign of ICE vehicles, such as Edge or Escape. I don’t even want to get started with the sedan issue, because it makes me so mad. I have owned 9 new ford vehicles since 1997, but now there will be nothing left to buy in the affordable range, except for maybe the Maverick. I am out and headed to Toyota or Chevrolet. This whole situation will have a bad ending for Ford.

    Reply
  16. Bob

    They are putting all their chips on the EVs. If that fails, what do they have? This country doesn’t have an infrastructure to support millions of EV charging. There are lots of problems that no one is talking about. Do you hear much from the electric companies?
    They are amazingly silent.

    Reply
    1. Tigger

      And the chances of failure are greater with the costs of batteries going up and 10-15% annual increases in pricing as we just saw with the Lightning.

      Reply
      1. Bob

        Yep !!! The prices never go down. People that have owned the first generation EVs are selling and going back to gasoline when they discover the cost to replace the batteries.

        Reply
  17. Mike

    Ford dropping nearly all cars except the mustang really peeved me. I’m driving an 8 year old Taurus sho with 150k and I’d love to go buy a new one, but go figure, they dropped it. I dont want a pickup, and a mustang isn’t great in snow. So I too for the first time in my life am considering a GM product. Most likely the Cadillac CT-4v blackwing if I can save up the money.

    Reply
  18. William J.jr. Offutt

    Get Rid of Farley , as he is killing your Company ! With no Real Experience as an Auto Guy, he is really not worth the salt to give him in trade to another Firm ! I have a 2016 Ford Flex , -SEL , and a 1955 Packard 400- 2dr, hardtop ! Both of them are worth in build quality than the Electrics ; that you are trying to Peddle ! Hyundai , and Kia , as well as Genesis are running Ford Out of Business ! Catering to the Chinese Market is just plain Foolish ! You took the Lincoln in the wrong Direction , as I had a New 2005 Lincoln Town Car-Limited , in which you refused to Modernize through its Existence ! Every Lxury Auto were running Rings around it with the latest in Electronic s , and Safe innovations ! It was getting to be a vehicle in which the German Mercedes Bentz was making the Auto Embarrassing ! Look at the Rolls Royce, and the Bentley ! They know how to make a Beautiful Car , while making Money ! Look at the Kia Tulluride, and its Sister Hyandai SUV ! Look at the Toyota Sedans , and the Value that goes into those Values ! In 1957 , Packard was developing Beautiful Patricians, Four Hundred and Carribeans , and New Executives with innovative Features ! The New Packard Predictor was way ahead of its Time ! If you stick with Farley’s Ideas on Electrics ; you will be a Chinese Auto Company Like Volvo , with Elctric Chinese Motors, and Chinese Batteries ! You will lose your Base if you Stop making Sedans , Hardtops, and Convertibles ! You have already lost your Base in the Limousine Market to Rolls Royce, and Bentley, and Mercedes Bentz !

    Reply
  19. Ps

    So many MBAs in the comments. Y’all really think you know better while Ford is doing insanely well? Okay lmfao

    Reply
  20. MBA Boss

    Is there a way to find out how many ford/Lincoln customers left and bought a competitor? Put another way, how many ford/ Lincoln customers did they lose from 2021 by offering limited models that most of us do not want.

    Please put as much effort into Lincoln as you do Mustang and Bronco. Love the Cadillac Celestiq! Such an inspiration from America’s on luxury brand.

    Reply

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