Ford plans to maneuver to non-negotiated costs for all its autos, CEO Jim Farley informed traders yesterday. Farley didn’t place a time-frame on the choice.

The announcement got here as a part of Capital Markets Day — the primary in-person convention for traders Ford has held since 2016.

Transfer Could Apply to All Automobiles or Simply EVs

Stories differ on precisely what Farley mentioned. The Related Press experiences that the CEO “mentioned Ford will go to non-negotiated car costs.” However the Detroit Free Press says, “Non-negotiated costs will likely be a part of bettering the shopper expertise for electrical car [EV] consumers,” suggesting that the coverage might apply solely to EVs.

Not The First Time Ford Has Advised This

It’s not the primary time Farley has urged the transfer. Final summer time, he urged that Ford transfer to a Tesla-like mannequin of promoting vehicles solely on-line, for fastened costs, and utilizing dealerships as native distribution and repair facilities.

Farley later informed sellers he wouldn’t observe that plan after most sellers dedicated to promoting EVs for no-haggle costs.

Competing in Fewer Areas

Farley additionally informed traders Ford would pull again from some market segments the place different automakers are doing effectively. The AP says Farley promised to “cut back funding in hypercompetitive market segments akin to 2-row smaller SUVs.”

Ford at the moment sells two compact SUVs underneath the Ford identify — the Escape and Bronco Sport — and the Lincoln Corsair compact luxurious SUV. Farley didn’t announce that any of the fashions would disappear, however the announcement calls their long-term futures into query. All three have had latest updates that ought to make canceling them unlikely for a number of years.

As a substitute, the corporate seeks to promote extra of its “iconic autos,” akin to giant pickups and the Mustang muscle automobile.

Ford has more and more targeting promoting only a few merchandise and constructing many particular editions of these. The corporate stopped making sedans completely in 2019.