M ith drastic measures, the new Ford boss wants to get the car company going again, Jim Hackett announced at an investor conference on Tuesday (October 3rd, 2017). The planned measures include massive cost reductions, a revised model range and a clear focus on autonomous driving and electric mobility.
Hackett wants to reduce spending by around 14 billion dollars (12 billion euros) over the next five years material costs decrease by ten billion dollars and development costs by four billion dollars. In addition, the range of models is to be rebuilt and thinned out. Ford wants to invest more in SUVs and pickups and put the brakes on smaller models. For example, the new Ranger will come in 2018, the new Bronco in 2020. In addition, Ford wants to invest around a third less money than before in classic combustion engines. Instead, this money is to be used to further promote the development of electric cars - in addition to an already announced $ 4.5 billion funding program. In the next 5 years, 13 new hybrid and electric cars are to come onto the market. The Mustang and F-150 models are to be supplemented by hybrid versions in 2022. Hackett is also open to new partnerships on the subject of new technologies. The new 'Team Edison' was launched for both thematic areas.
Fields stumbles over share price and weak sales
The reasons for the change at the top of the company are likely the share price decline and the falling Market share of the US automaker. Since Fields took over from Allan Mulally at Ford in mid-2014, the price of Ford shares has fallen by a good 40%. The market shares have also decreased significantly.
Fields, 56, is leaving Ford after a total of 28 yearsCompany.
Fields 'successor in May was the 62-year-old Hackett, who was previously responsible for the development of autonomous cars in a subsidiary.
After Fields' departure, James will also move Farley, Joe Hinrichs and Marcy Klevorn join the Ford executive suite. The Chief Communications Officer Ray Day was also replaced. He was succeeded by Mark Truby, who was previously in charge of communications at Ford in the Asia-Pacific region and previously held the same position in Europe.