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 Edge – will 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-150, Ford 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.
Comments
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!
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.
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.
“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.
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?
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.
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.
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.
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.
We have had a 2013 Edge with the 3.5 and now a 2022 Edge ST with the 335 hp 380 ft lb 2.7 and it is a fantastic vehicle. More fun than a barrel of monkeys. As an old hot rodder I do wish there was a factory tune for the 2.7 to get 350 hp and 410 ft lbs of tq hint hint, but it handles really well, the AWD is transparent and the brakes are unbelievably good. The style fits us so well. I really wish that they would continue making it. I would suggest possibly making it a RWD dominant and kick in the front when needed. That would be the ultimate advantage. The ST should be the only model. The B&O 12 speaker system with Sub is perfect. I really think the Edge ST should be retained with the suggested changes would be a seller. Lifetime Ford family. I have a 65 Galaxie FE powered street/strip car.
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!
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.
Amen Brother Tigger
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….
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.
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.
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”.
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.
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.
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.
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.
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 !
So many MBAs in the comments. Y’all really think you know better while Ford is doing insanely well? Okay lmfao
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.
Once again here we are at the corner of Deja Vu all over again and “QUALITY IS JOB 1”.
As they cut more employees to help the bottom line and use the excuse we’ve hired or employ too many, I agree with the comments above. Upper management is using low-hanging fruit to replace the vehicles they say is our may stay. Maverick is great but people are tired of waiting for their vehicles. The Bronco from day one has had and still has quality issues. Getting out of the car business and committing to EVs will be the death knell for FOMOCO. Listen to your Dealers. EVs are just ok and a division for Commercial vehicles, wait for the next recession. Besides, you can’t even supply Commercial vehicles to meet the need. Recalls on vehicles from the day they leave the plant to the dealer are totally unacceptable. It’s great they have taken on Consumer Reports but send our engineers to visit a Toyota or Honda Plant and maybe hire their guys to get it done.
I dont think they exit this market….one time back they were talking …make a Larger Escape /Corsair and discontintue the Nautilus and Edge….and it mabe have three rows of seating