Ford to move away from traditional cars
Ford’s new boss has outlined plans which he says will make the US car giant “fit” to compete in a changing industry.
Jim Hackett said Ford would shift resources from traditional cars to SUVs and trucks, while investing in electric power and tech services.
The firm will also automate its manufacturing processes more to help to cut costs by $14bn (£10.5bn).
Mr Hackett identified the goals after a 100-day review.
He became head of the company in May, replacing Mark Fields, who had been in the top job for only three years.
During that time, the firm had two of the most profitable years in its history, but the share price drifted lower.
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Investors have been concerned that Ford is not moving quickly enough in markets such as China and in sectors such as automated cars to fend off competitors, including new ones emerging from Silicon Valley.
“The industry is staring at the tech companies coming at it. That’s where I feel I bring some experience to Ford, where I can help,” said Mr Hackett, who joined Ford last year to lead its autonomous car division before taking the top job.
“Fitness is the way you protect your broadsides from disruption,” he told an investor meeting in New York on Tuesday.
Mr Hackett said the firm needs to automate and simplify its production processes and invest $7bn in its successful products, such as SUVs and light trucks, which have driven US sales this year.
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