The auto-maker plans to target the market that want to purchase SUVs.
Earlier on Thursday, the automobile company Ford Motors made an announcement according to which the company mentioned its plans of launching all-new four SUVs in a time span of 48 months. The auto-maker plans to do so because of the growing global demand and popularity of SUVs and crossovers. The official news will be made at the Chicago Auto Show by the Vice President of Sales and Marketing, Mark LaNeve.
As per the news announced by the automobile manufacturer, it will be designing four new SUVs and produce them in the time period mentioned above – and these automobiles will be aimed to fill the gap in the market where it has not yet introduced its products. Additionally, these new products will be a part of a global plan made by the organization; however they have yet to announce where and when these vehicles will be launched.
It is possible that these new SUVs and crossover might be made a part of the organization’s mainstream Lincoln or Ford Brand. It is also likely that these cars make their debut in Europe, Asia, United States and/or South America. According to a statement by the Blue Oval, the company does not plan to remove any of its models from its product line.
Presently, the demand for SUVs is quite high and that is what all the auto-maker companies in the industry have been working on – additionally this demand for SUVs had caused numerous auto-makers to think that it would be better if they working on shifting their focus towards introducing more SUVs in the market instead of passenger cars or Sedans.
The major reason as to why the Detroit based automobile maker has made its shift into the SUV market is because these vehicles are more fuel efficient and given that the gas prices are at a low currently, it encourages a number of customers to go for SUVs instead of other cars. Additionally, the company conducted a research according to which it stated that once the younger generation moves towards starting a family in the upcoming years, they would want to purchase convenient vehicles and hence the sales of SUVs will increase significantly. These automobiles have become the starting point for a number of families now.
Furthermore, Ford recently announced its fourth quarter earnings which were much better than the Wall Street had projected it to post. According to the report, the company has given guidance for 2016 as well; according to which the profit margins in North America might not be same as they were in the previous year at 10.2%; mainly because the Ford stock dropped to $11.70 during the last week of the first month. This drop in the share price was of 1.2% however the company earned 50 cents on each share. The analyst at Wall Street had expected the company to report EPS of 51 cents.
Majority of these earnings per generated in the fourth quarter of the previous year amidst the declining oil prices. Presently, the stock is being traded at 11.17 at a discount of 1.50%.