Taurus, Fusion, CMAX, and Fiesta will soon disappear in North America Wayne Gerdes – CleanMPG – April 25, 2018 Ford's big gamble... Driven by profitability. On Wednesday Ford released its 1Q 2018 earnings under the new and much lower corporate tax structure. The company said it made $1.74 billion in the quarter, up 9.4 percent over the $1.59 billion it earned a year ago. Revenue was up 7 percent to $42 billion. Operating profit margin increased to 7.8 percent from 5.2 in Q1 of 2017 with a full year outlook of > 8 percent by 2020. North America drove Ford's profits for the quarter with pretax earnings of $1.9 billion while Asian ($119 million USD) and South American ($149 million USD) losses continue to plague the U.S. automaker. The big news from the Q1 earnings release was that the company stated it will discard MOST OF ITS NORTH AMERICAN CAR LINEUP as part of an all-encompassing plan to save cash, drive earnings, and be more competitive going forward. From the Q1 2018 earnings release... Ford’s CEO Jim Hackett said the decision was due to declining car demand and in particular, "profitability". All in, the Taurus, Fusion, CMAX, and Fiesta will soon disappear from the North American marketplace. This announcement could lead to a near term Ford employment problem while placing the company at risk due to possible higher fuel prices over the mid to long term. Ford will surely discard tens of thousands of U.S. employees working on the non-profitable car lines. When gas prices rise, so go Pickup and SUV sales. Chief Financial Officer Bob Shanks stated the company will save upwards of $25.5 billion in cost cutting by 2022. Shanks did not say if employees would be cut but said, “Nothing is off the table.” We all know what that means. The cost savings are expected to partially be achieved by designing its vehicles on five flexible global architecture platforms vs. nine today. Think of VWs MQB and Toyota’s TNGA as the direction Ford will also be taking. Finally.