Hours after the news of the Lincoln Mark E SUV, it was no more…
Q1 net loss and Coronavirus aftermath have influenced the decision.
Fortifying the balance sheet is a necessity.
Despite, $34 billion in revenues in Q1, Ford has suffered a $2 billion net loss so far in 2020. Every aspect of their business or nearly has taken a hit, including Ford Credit and For Mobility. The outlook for the remainder of 2020 is bleak and so decisions are being made to curb various expenditures, namely the Lincoln Mark E electric SUV co-developed with Rivian.
Ford CEO Jim Hackett said: “Ford people are keeping each other safe, limiting the spread of the virus, safeguarding healthcare workers and first responders, and taking care of customers. The imagination, initiative, and execution of our team is helping save lives today, and those qualities will allow Ford to emerge from this as a stronger company.” One of the ways seems to be by cutting down on some future projects.
Now, the Lincoln Mark E was going to be a low-volume near-six-figure luxury SUV but it would have made quite the mark, and flagship for Ford’s luxury brand. As a stillborn vehicle, there are no losses to report however Ford did invest $500 million in Rivian – we can safely assume the project is only postponed.
What will go ahead is the planned launch of the Ford Mustang Mach-E and the creation of its unidentical twin under the Lincoln banner.