Hyperdrive
Ford Retreats From American Car Business in Penny-Pinching Push
- CEO Hackett targets $25.5 billion in cost reductions by 2022
- Only the Mustang muscle car will be spared in North America
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Ford Motor Co. is cleaving an additional $11.5 billion from spending plans and dropping several sedans, including the Fusion and Taurus, from its lineup to more quickly reach an elusive profit target.
The automaker is almost doubling a cost-cutting goal to $25.5 billion by 2022, Chief Financial Officer Bob Shanks told reporters Wednesday. By not investing in next generations of any car for North America except the Mustang, the company now anticipates it’ll reach an 8 percent profit margin by 2020, two years ahead of schedule.