Ford’s recent announcement that it has decided to eliminate virtually all of its cars from its North American portfolio has caused ripples in all corners of the industry, and continues to be discussed as new information and speculation arises from it.
Here are some of the main elements we’re getting out of all of it.
First of all, a number of dealerships are, understandably, nervous about what fate awaits them. Many of them count on affordable subcompacts and compacts and say that the buyer of a Ford Fiesta often comes back a few years later for a new Ford. By removing the option of an accessible small car, that client may disappear. In response, the automaker has tried to reassure retailers that they will soon be able to offer other affordable models.
Second, it’s important to understand that Ford’s move is dictated by money concerns. As it got increasingly less profitable to produce cars in comparison with SUVs, the company felt it had to act decisively. But the calculation doesn’t end there. The move towards electrification will cost a lot of money, and Ford intends to come up with that money by cutting its production of cars.