Ford on Wednesday promised to raise its operating profit margin from 5.2 percent to 8 percent by 2020, two years earlier than a previous forecast.
Ford North America has confirmed it's in the process of transitioning to a passenger auto range comprising just the Mustang and Focus Active. In an interview with Quartz just three months ago, Jim Hackett, Ford's chief executive, said the company is "not planning on a future where it doesn't sell more cars".
"The automaker was very blunt in its confirmation of its plans, saying simply "[will] not invest in next generations of traditional Ford sedans for North America".
"We're going to feed the healthy parts of our business", Hackett told analysts on a conference call Wednesday, "and deal decisively with the parts that destroy value".
Ford's shares traded up about 2.2% in after-hours trading Wednesday at $11.35 after closing at $11.11, in a 52-week range of $10.14 to $13.48. There's also the potential for new cars combining the "best attributes of cars and utilities, such as higher ride height, space and versatility".
Ford has since also confirmed that only the next-generation Focus Active will arrive stateside, meaning the sedan and hatchback versions of the vehicle will not make their way to the USA market. Crossovers and SUVs have quickly come to represent more than half of the total industry's US sales, while sedans and small cars have been sinking. He said the Lincoln brand as a whole is not in danger but noted that it lost money in China because it is in ramp-up mode there after being introduced in 2014. Europe was the only region to turn a profit for Ford.
Shanks said Ford is "unleashing the creativity of the teams to challenge norms, challenge conventions".
The company previously predicted $14 billion in cuts by 2022.
The vehicle maker expects its annual capital expenditure to peak this year at $7.5bn, and then will be cutting costs across engineering, marketing, manufacturing and sales between 2019 and 2022, saving a total of $25.5bn. Revenue rose 7 percent to $41.96 billion.
"We are driven to turn this business around". Earlier this year, James Farley, the company's president of global markets, said Ford is "shifting from cars to utilities", which have been a bigger profit driver.