Report: Ford Suspends Small-Car Plan for Emerging Markets

Ford Motor Co. has dropped plans to introduce a family of small vehicles for emerging markets as consumer tastes shift from cars to crossover vehicles, sources tell Reuters.

Ford had planned a 2018 launch for its so-called B500 range that was to include a premium sedan, hatchback and SUV. The models were to be assembled primarily in China and India but also in Brazil, Russia and Thailand, according to the news service.

Ford’s move mirrors a July decision by General Motors Co. to halt plans to launch a $1 billion group of small vehicles in India. The first of GM’s new models, the Spin MPV, was to hit the market in 2017.

Ford declines to comment on the Reuters report. But notes it has invested more than $2 billion in India, intends to add a global engineering center there and remains committed to making India a production hub for the Asia-Pacific market.

Analysts tell Reuters Ford is likely to focus for now on updating its current model lineup as it develops new compact crossover models.