Ford Shifts Gears: Iconic Models Drive Future as Boring Cars Fade Away

Ford CEO Jim Farley recently revealed that the company plans to phase out "boring" models, steering its focus towards more "iconic" vehicles. This strategic shift will lead to the discontinuation of popular models such as the Fiesta, Focus, Fusion, and Taurus. In Europe, vehicles like the Fiesta and Mondeo are also being phased out, with the Focus set to retire by 2025. Notably, there are no current plans to introduce electrified or updated versions of these models.

Farley acknowledged that while these cars have a loyal customer base, investing further in the likes of the Fiesta, Focus, and Mondeo is not seen as a valuable use of resources. Instead, Ford aims to reshape its product line by focusing on electric SUVs developed on Volkswagen's MEB platform, with upcoming models including the electric Explorer and Capri, as well as a new electric version of the crossover Puma.

The "iconic" models mentioned by Farley include the Bronco, Mustang, and Raptor. Ford sees the Mustang, in particular, as a vehicle capable of competing with premium brands like Porsche. By allocating more funds to these models, Ford intends to turn what were once niche enthusiast vehicles into core elements of its business strategy.

However, the move away from what Ford considers "boring" models may create openings for competitors such as Volkswagen, Toyota, Stellantis, and Kia/Hyundai. In the European market, where the most popular cars are not SUVs, Ford's decision to narrow its lineup to models like the Puma, Kuga, and Mustang Mach-E could be seen as risky.

Ultimately, while this strategic pivot aims to bolster profitability through an enhanced focus on "iconic" vehicles, the potential for market share loss to competitors remains a significant concern.