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Ford Favors SUV's Amidst Automotive Shift
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After a second failed attempt the revitalize what was once America's best-selling car, Ford has decided to call it quits on the Taurus. Not only have auto sales in general slowed to unprecedented levels, but Americans who do own autos now prefer SUV's over full-sized sedans. And it isn't just the Taurus that is headed for the junkyard.

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Ford, for its part, has announced a major restructuring plan that will focus on making SUV's as well as investing in technology to make Ford more of a "mobility company". Indeed marketers there have decided to abandon all car models in the North American market except for its Mustang and a version of the Focus called the Active. This is a major change in marketing strategy for the 114-year-old brand, and the move is entirely do to the dramatic shift in consumer tastes over the past few years, as SUV's are now 75% of the automotive market (up from 50% in 2013). It will be interesting to see whether or not any competitors follow suit.

 

Discussion: What is driving the market for SUV's? Why the sudden shift in consumer preferences away from cars? What do you think Ford means by becoming a "mobility" company?

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