Tech & Auto
Why Ford Really Discontinued The Fiesta
By OLASUBOMI GBENJO
For nearly five decades, the Ford Fiesta has been the ideal choice for many first-time car buyers, building a reputation for its styling, great handling, and fuel economy.
Unfortunately, Ford has signaled the end of the Fiesta. Despite its popularity and impressive performances on the race track, it doesn’t generate enough profit for Ford.
Smaller cars generally offer slimmer profit margins when compared to SUVs, trucks, and crossovers, which combined make up more than 60% of the market share.
Ford’s CFO, Bob Shanks, shared that the company will focus 90% of its resources on SUV and truck production while less than 10% will be allocated to passenger cars.
Ford will still make small, inexpensive cars, but these will be electric vehicles. With the EV market rapidly changing, Ford hopes to position itself as a major player.
The Fiesta may even see a revival as an EV. Martin Sander, a Ford general manager, revealed to Automotive News Europe that the idea hadn’t been dismissed.