Ford is killing the fusion and giving the name to a sport wagon

Ford Motor Co. is killing its slow-selling Fusion sedan while keeping the name to affix to a sport wagon it is developing to take on Subaru’s popular Outback, according to people familiar with the automaker’s plans.

The Fusion name probably will live on when the sedan exits early next decade, according to a spokesman. It will be replaced in the showroom by a high-roofed hatchback built on the same mechanical underpinnings, said two people who asked not to be identified revealing future product plans.

Ford shocked the auto industry -- and many of its dealers -- when it announced plans in April to abandon the shrinking sedan market and go all in on higher-profit sport utility vehicles and pickups. By early next decade, only the Mustang pony car will remain in Ford’s U.S. lineup. Worried that customers will defect to rivals, dealers have pushed to retain the Fusion name, which just four years ago was such a strong seller that Ford had to add a second factory of production.

“They spent hundreds of millions of dollars for brand equity in that Fusion name -- not $10 million or $20 million -- but hundreds of millions,” said Rhett Ricart, one of Ford’s top dealers, whose showroom is near Columbus, Ohio. “The smart thing is to play on that brand equity.”

Ford spokesman Mike Levine declined to speculate on the new Fusion’s design while confirming “we’ll likely continue to use the name because of its awareness, positive imagery and value with consumers.”

Ford India Limited