Ford Motor Co (NYSE:F) reported its ambitious plans to shift its product portfolio to SUVs from passenger cars, launch more pure electric and hybrid vehicles, and reduce manufacturing and development costs – moves intended at boosting Ford’s share price and profit. Chief Executive Jim Hackett reported that Ford’s earlier mentioned margin target of 8% “now has upside.” However, firm executives targeted 2020 as it is when the overhaul of its engineering systems and product lineup will completely take hold.
Ford introduced a strategy to refurbish most of its lineup of cars over the imminent two years at a conference at its headquarters in Dearborn. The strategy focus remains on shifting measures to high-margin trucks, performance vehicles and SUVs, while also providing electrified types of the bulk of its lineup, counting its full-size F-150 truck. Ford intends to make hybrids mainstream by bringing them with the firm’s best-selling and most profitable vehicles, said Jim Farley, the President of International Markets at Ford.
In unrelated news posted on Reuters, it was stated that Ford is trying to maintain respect and trust in its associations with Jiangling Motors Group and Changan Automobile Group, putting pressure on sales initiatives, as per sources at Ford. Ford and Changan have already been associated for almost two decades, however they still don’t trust each other.
As per Peter Fleet, the head of Asia-Pacific operations at Ford, expressed that in an attempt to enhance relations and reverse a latest recent sales decline, Ford is setting for a new product blitz and a plan to localize management in China. Ford sales declined 6% last year while overall vehicle sales in China jumped 3%. Sales during the initial two months of 2018 are down 23%. Fleet reported that the firm was looking beyond overall sales figures to bring focus on structural priorities.
THE MORNING REPORT
Start your workday the right way with the news that matters most.