Ford Famously Ditched Sedans Years Ago. This Is Why It's Time to Reconsider.
Ford is now much better able to generate profits in the segment, and consumers are demanding it.
Ford Famously Ditched Sedans Years Ago. This Is Why It's Time to Reconsider.
Overview
Years ago, when Ford Motor Company (NYSE: F) stopped producing sedans in the U.S. (other than the prized iconic Mustang, if you count that), it was a fairly logical move. At one time, the sedan market accounted for 50% of new-car sales, but that share has consistently declined to the mid-teens as America's appetite for larger SUVs and trucks has increased. At the time, Ford's profitability on sedans was questionable, so moving production capacity and capital investment to larger, more profitable vehicles made sense.
Fast-forward to today, and things have changed yet again. Ford is planning to get back into the sedan segment in the U.S., but why, and what does that mean for its bottom line?
Details
Source
Originally published at www.fool.com.
