A New Focus for Ford
Is Ford cutting back on its full line of sedans?
Ford—the first automaker to “put the world on wheels “—is reportedly making major changes in the face of years of earnings disappointments. Its assembly line won’t know what hit it.
Ford defects and auto recall cases have plagued the automaker in recent years—which no doubt hasn’t helped profitability.
In addition, Ford lemon law attorneys in Pennsylvania and New Jersey have successfully pursued numerous claims against the manufacturer, also off-setting profits.
So, in an effort to turn things around and reclaim a more positive profit margin, Ford announced it will be “shrinking its passenger car lineup”, and cutting back to “low-volume, high margin models” that satisfy today’s buyers. Specifically, Ford is “reallocating investment toward crossovers and rugged off-roaders” since the demand is greater for SUVs than for passenger car sedans.
And there is another buyer demand that Ford has arguably overlooked—likely to the detriment of its profit margin—but will now direct its focus and finances toward: self-driving, electric cars.
While the original automotive pioneer is not admitting it’s trying to play “catch up” on the wave of “electric, autonomous, connected and shared vehicles”, Ford pledged to “invest $11 billion to bring 40 electrified vehicles to market by 2022.” That’s a monumental undertaking likely designed to establish a formidable market presence and hopefully overshoot some of its competitors, like Chevy and Tesla, whose electric cars are already in circulation and gaining popularity on the roadways.
The automaker is literally banking on reversing the trend of past losses, and it projects future profits by simply cutting out less popular sedans from its former full line in favor of lucrative SUVs, crossovers, and the self-driving, electric models. But can Ford wait for those projected profits to actually arrive? Did it wait too long to shift its focus? Time will tell.
With such drastic changes and advancements in automotive technology, there will no likely be future auto recalls, lemon law, and breach of warranty claims across all manufacturers as these new vehicles and the systems that support them are tested and tried by consumers.
If you live in Pennsylvania or New Jersey and believe you might be driving a “lemon” because you’re relatively new car is always in the shop for the same stubborn repair, or if you feel you may have been a victim of fraud or have a breach of warranty claim, the attorneys at Timothy Abeel & Associates can help you. Contact us today for a free consultation.
Depending on your problem and circumstances, you may be entitled to such remedies as a full refund on your down payment, trade-in, monthly payments and taxes, or a brand-new car or cash settlement.