Ford Is 'Transitioning' to Just 2 Car Models
- Author: Essie Rivera Apr 27, 2018,
Apr 27, 2018, 0:31
The company expects that by 2020 nearly 90% of its portfolio will be trucks, utilities and commercial vehicles.
Hackett said the plan also calls for Ford either fixing or dumping unprofitable global operations.
Ford said the changes will not require additional investment but will instead be enabled by freeing up $11.5 billion (about £10bn) from existing programmes. Savings will come from engineering, product development, marketing, materials and manufacturing.
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"We have looked at every single part of the business", Shanks said.
For more than a century, the giant American automaker has been associated with cars. That includes a 10 percent pretax margin in North America.
Ford's revenue worldwide increased 7 percent to $42 billion for the quarter.
Ford's board replaced its chief executive officer with Jim Hackett last year.He is a cost-cutter who is prepared to make the sort of audacious gambles that Wall Street thinks have been missing. Analysts had on average expected earnings per share of $1.24.
Ford outlined the bold strategy shifts in a news release about its first-quarter financial results, which continues a streak of billion-dollar profits. Profits before taxes fell to $2.2 billion from $2.5 billion.
So what Ford vehicles are being dropped?
Shanks said Ford is unleashing the creativity of the teams to challenge norms, challenge conventions. Cuts and efficiencies are not done yet, he said. He adds that Ford will do "whatever it takes" to fix low-performing areas.
Ford says that Lincoln sedans, including the Continental, will not be phased out.