According to a recent Reuters report, Ford Motor Co — number two in the USA — has outlined a plan to cut costs and boost profit margins faster than previously announced; it includes dropping traditional saloon-type models in North America, as these have become less popular with consumers.

The company says it now plans to cut $25.5 billion in costs by 2022, instead of the $14 billion in cuts it announced towards the end of last year.

Chief executive Jim Hackett told investors the company is undergoing “a profound refocus” of its operations and may “exit” unprofitable businesses.

“We will restructure as necessary, and we will be decisive. We are going to feed the healthy part of our business and dispose of marginal operations.”

Ford (www.corporate.ford.com) said it expects pre-tax profit margins of 8% globally and 10% in North America by 2020, ahead of the previous target of 2022.

Responding to a shift in consumer demand to SUVs and pick-up trucks, Ford said that, starting in 2019, it planned to trim its North American car portfolio to just two models: the sporty Mustang, which debuted 50 years ago, and a new compact crossover called Focus Active, adding that the company “will not invest in next generations of traditional Ford saloons for North America,” including the mid-size Fusion and the full-size Taurus.

Ford has been under pressure from Wall Street investors to improve its product line-up and lift flagging profit margins. In 2017, the company’s pre-tax profit fell to $8.4 billion (from $10.3 billion).

In March, Ford executives unveiled ambitious plans to shift the product portfolio from passenger cars to SUVs, add more hybrid and pure electric vehicles, and reduce development and manufacturing costs — with the aim of boosting profits and the company’s share price.

Ford reported a better-than-expected first-quarter profit, with a 7% increase in revenue and a lower effective tax rate offsetting a jump in costs — especially higher commodity prices.