Ford's net income rose slightly in the first quarter due largely to a lower income tax rate.
For the first quarter, the Dearborn automaker said it earned 43 cents per share, beating Wall Street analysts' average expectations by 2 cents per share. It will also reallocate $7 billion designated for research from cars to trucks.
Company officials said the shift was based on declining demand and profitability, but Ford reported $1.7 billion in profit for the first quarter in 2018 - a 9 percent increase compared to the same period a year ago.
For example, a Fusion starts a little above $22,000 and gets 21 miles per gallon in the city and 32 miles per gallon on the highway, Ford's website says.
Ford's new fitness regime kicks off with a dramatic shift in product and market strategy, starting with the sedan segment in North America. The move not only reflects a change in consumer taste, it could make the automaker more profitable, since margins are higher on SUVs than sedans.
The No. 2 US automaker said it now plans to cut $25.5 billion in costs by 2022, up from $14 billion in cuts it announced last fall.
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"We're not going to invest where it doesn't make sense", CFO Bob Shanks said.
On the other side of the announcement, however, are those who already bought Ford sedans.
It also wasn't clear if the move will impact Ford's Lincoln brand.
By 2020 the automaker predicts that nearly 90 percent of the Ford portfolio in North American will be trucks, utilities and commercial vehicles.
"Ford's announcement to pretty much get out of the vehicle business ... comes as no surprise".
The decision was made after a long decline in sales for cars like hatchbacks and sedans.
Ford is counting on its planned cost reductions to reinvigorate its North American operations.
He said that they will be "building a winning portfolio and focusing on products and markets where Ford can win". Up to five hybrid-electric SUVs as well as a hybrid Mustang are also projected to be on sale by the end of the decade, as new technologies increasingly break the link between a vehicle's size and performance and its efficiency.