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Ford just announced as part of its new cost-cutting plans, to eliminate selling all cars within the U.S. by 2022 except for the Mustang.

AutomotiveNews said:
Ford Motor Co. on Wednesday said it plans to stop selling all sedans in North America and that it has nearly doubled its cost-cutting target by 2022 from the plan it laid out only six months ago. The automaker said it will either fix or eliminate unprofitable portions of the business.

Ford said the only cars it will keep in North America beyond their current generations are the Mustang and the Focus Active crossover arriving in 2019.
http://www.autonews.com/article/20180425/OEM/180429854/ford-brand-sedans-to-be-nixed-in-n-a-as-company-nearly-doubles-cost?cciid=email-autonews-daily
 

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Another example of how short-sighted American manufacturers can be. So focused on the next quarterly results they can't look 3 or 4 years down the road.

Yes, SUVs are dominating sales in America right now, but eventually gasoline prices WILL rise, car owners will be dumping 20 mpg SUVs and looking for more fuel efficient cars. it's happened before, and it will happen again, and where will Ford be with no product to sell?
 

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Wonder if they’ll move their cars to Lincoln.
 

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Wonder if they’ll move their cars to Lincoln.
Probably not, the article states ""Shanks said small cars and "most Lincoln products" are among those losing money.""
 

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Wow... That has to be the biggest paradigm shift I've ever heard in my lifetime, for the auto industry. This is beyond major news--and as mentioned above, in all likelihood--short-sighted...
 

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The return of $5.00 gallon/gas is just economy/population growth and one crisis away. I am watching folks of middle income buy huge SUV’s and pickups that they truly do not need (nothing to tow, family size of 4/5, and similar). I do worry that when the $5/G gasoline returns, that such current purchasing decisions would be super painful to those who are not making smart choices now.
 

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The return of $5.00 gallon/gas is just economy/population growth and one crisis away. I am watching folks of middle income buy huge SUV’s and pickups that they truly do not need (nothing to tow, family size of 4/5, and similar). I do worry that when the $5/G gasoline returns, that such current purchasing decisions would be super painful to those who are not making smart choices now.
Gas prices jumped a week ago and I believe are at a 3 or 4 year high. Someone correct me if my timing is off. Like you said,we're only 1 crisis away. And we're pumping more oil within the past year that ever. I know oil doesn't equate to gas prices 100% but it's a significant factor. So much so that my former employer,an airline,purchased a refinery as a hedge. They trade a large part of that oil for kerosene/jet fuel, and are a major distributor in the NYC airport area.
 

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I can see it now...... a 4 door Mustang will get them back into cars around 2025. Kinda like when they stretched the T-Bird into a 4 door in '67.
 

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Another example of how short-sighted American manufacturers can be. So focused on the next quarterly results they can't look 3 or 4 years down the road.

Yes, SUVs are dominating sales in America right now, but eventually gasoline prices WILL rise, car owners will be dumping 20 mpg SUVs and looking for more fuel efficient cars. it's happened before, and it will happen again, and where will Ford be with no product to sell?
Unfortunately the average American consumer is even more short-sighted than any manufacturer, although some claim that quarterly reports are the worst imaginable way to run a business...especially extremely large companies. Also, regarding what folks are buying, there are many studies that show approximately 50% of the vehicle purchases are WANT purchases, rather than NEED purchases. In the apparel industry, where I worked for 40 years, one huge consumer study recently showed almost 75% of all apparel purchases were WANT rather than NEED purchases! My view: more than ever in our history, most people simply will not plan for the future.

I sure wouldn't want to be heading up marketing at an auto company these days, dealing with the fickle/over extended, technology focused consumer who has little interest in cars of any type. Not to mention the sea change in the form of alternative power sources. Point being; relative to the auto industry with it's long lead times and huge investments, they really have little choice but to try and lead consumers in certain directions.
 

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Growing up in the (newly built) suburbs in the 60's, every household had at least one car. In those households that had two cars, both of them were automobiles, and one of them was a family sedan in every case. Whenever families traveled, it would be in the family sedan. The two-car households had a commuter car for Dad and another car for Mom, so she could go to her bowling league or bridge club while Dad was at work. If a family needed more carrying capacity, they bought a station wagon. No one but construction foremen and cowboys drove pickup trucks in those days. There were Chevy Suburbans and Ford Broncos and Jeeps around, but they were not family cars.

Several factors created the shift that we see today as people choose to buy more SUV's and pickup trucks, but it is certain that people feel a need to be able to carry "stuff" with them wherever they go. In Europe, where petrol is much more expensive, you see more shooting brakes and station wagons than you do here, finding a way to carry more stuff while maintaining a lower physical profile than most US drivers.

Whether or not we ever see another spike in oil prices like in the past is unknown for sure, but for the first time in a long time, the US is now energy-independent, so the chances are less than they have been for a long time. (By the way, US energy independence is thanks to US technology rather than any government policy over the last decades.)

It is not short sighted on the part of the auto industry to shift their product mix to align it with what people are buying.
 

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They are moving on to solar powered flying commuter cars :wink-new:
 

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The world currently consumes a mind-boggling 100 million barrels of crude a day, and consumption is only expected to grow in coming years.

oil.JPG

In fact, the only times in the past century when oil consumption have declined year-over-year has been during periods of economic recession.
 

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Maybe i should buy a last generation Taurus or Fusion as future collector.
Don't think I'd want the Taurus for ANY reason. It was a lousy car when new, and hasn't aged well. The Fusion OTOH.... I've had a few Fusion rentals, and they're actually quite nice for a moderately priced sedan. Decent handling, nicely weighted steering, comfortable front seats. Only cramped rear seat detracts from the family car experience.
 

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The return of $5.00 gallon/gas is just economy/population growth and one crisis away. I am watching folks of middle income buy huge SUV’s and pickups that they truly do not need (nothing to tow, family size of 4/5, and similar). I do worry that when the $5/G gasoline returns, that such current purchasing decisions would be super painful to those who are not making smart choices now.
Those who can't remember history are doomed to repeat it. The last time gas prices spiked, millions of people who bought large SUVs were dumping them for pennies on the dollar. Which proves that most people can't do math: it would have been far less costly for those people to keep driving their gas guzzlers than to take a bath selling them and then buy another new car.
 

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Whether or not we ever see another spike in oil prices like in the past is unknown for sure, but for the first time in a long time, the US is now energy-independent, so the chances are less than they have been for a long time. (By the way, US energy independence is thanks to US technology rather than any government policy over the last decades.)
independent or not, oil is a fungible commodity. Oil companies and refiners will sell their product to the highest bidder, whether domestic or foreign. The idea that we'll be insulated from price shocks because we can produce enough fuel ourselves simply doesn't reflect economic reality. Exxon Mobil isn't going to tell its stockholders "We could sell our oil for $100 a barrel, but we're going to sell it to US refiners for $50 a barrel because we're so patriotic." The entire board and executive suite would be out of work at the next stockholders meeting.

It is not short sighted on the part of the auto industry to shift their product mix to align it with what people are buying.
Looking only at what people are buying today, without considering what they'll want to buy tomorrow, is the very definition of short sighted.
 
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