Ford Motor Co. unveiled plans to boost profit by revamping its product portfolio with a shift to SUVs, while also strengthening its presence in the hybrid and electric segments.
The Big Three U.S. automaker said 75% of its product lineup will be replaced by 2020, with trucks and SUVs, including electrified vehicles, making up 86% of the mix by that time.
Ford said it is reallocating $7 billion in capital from cars to SUVs due to estimates that SUV sales could account for 50% of industry retail sales in the U.S. by 2020.
By that same year, Ford projects a lineup of eight SUVs, including five with hybrid power trains and one battery electric vehicle.
"This showroom transformation will thrill customers, drive profitable growth and further build toward our future of smart vehicles in a smart world," said Ford President and CEO Jim Hackett.
Citing a forecast by LMC Automotive, Ford said it expects its SUV sales to grow 20% to more than 950,000 by 2020 and to over 1 million by 2021.
