Ford beats on first-quarter earnings - but kills sedans in USA
- Ford beats analysts expectations for Q1 earnings.
- Ford is in the midst of a corporate restructuring.
- Ford announced it will not invest in new sedans in North America but will keep Mustang and a new crossover with the Focus nameplate.
Ford reported first-quarter earnings after the markets closed on Wednesday and beat analysts expectations, with a profit of $0.43 per share and revenue of $42 billion.
"We are committed to taking the appropriate actions to drive profitable growth and maximize the returns of our business over the long term," CEO Jim Hackett said in a statement.
"Where we can raise the returns of underperforming parts of our business by making them more fit, we will. If appropriate returns are not on the horizon, we will shift that capital to where we can play and win."
Winning for Ford means killing off its sedans.
"Given declining consumer demand and product profitability, the company will not invest in next generations of traditional Ford sedans for North America," the carmaker said.
"Over the next few years, the Ford car portfolio in North America will transition to two vehicles - the best-selling Mustang and the all-new Focus Active crossover coming out next year."
Consumers have made a decisive shift away from four-doors to SUVs in recently years. Fiat Chrysler Automobiles moved away from sedan over a year ago, while General Motors has remained committed but has dialed back production.
Ford shares finished the trading day on Wednesday up just over 1%, to $11. Year-to-date, Ford stock has declined over 12%.
