Ford Motor: competing is too hard

Ford CEO at an investor conference today. The company will exit the two row SUV market, as there is robust competition in that segment. The company will only build huge SUVs and trucks, because they carry the highest ATP and GP.

The laffer is Farley is insisting there will be no headcount reductions. People, there is no way a person who can barely make the payments on an Escape, can be pushed into an Explorer. Volume will fall. Plants will close. People will be laid off. But Ford will push ATP and GP higher, which is what Wall St wants. as it’s customer base gets narrower and narrower.

We old phartz have seen this movie before. Some bright lad will come in to the markets the Big Three have abandoned, in their drives to thrill Wall St and enrich the CEO, and eat their lunch.



It is still too early in the US for economies of scale to make a difference for heavy industry.

The austerity plans are going to grab headlines in a couple of weeks.

Just like Truss’s move in the UK.

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Given the large investment Ford needs to make in EVs its not surprising that they will focus on some models.

They can continue to make and sell the ICE models as long as buyers want them. But their days may be numbered if EVs succeed. Big investments are needed elsewhere.