Ford To Shift $7 Billion From Car To Truck / SUV Development

How Ford Will Join the Electric-Car Revolution

Marakby said Team Edison will be "cross-functional", handling everything from marketing to engineering to determining Ford's overall electric-vehicle strategy. Hackett also said that in the last seven years we've averaged a 6.1 percent margin but that is a minus.

CEO Jim Hackett spent his first 100 days rethinking all aspects of Ford's business. Hackett traveled to Russian Federation and Turkey and visited North American plants and Ford's Silicon Valley research center as part of the review.

Ford is working to speed the development of the technology, though. This will entail pulling $10 billion out of materials costs and another $4 billion out of product engineering costs. He needed to demonstrate to Wall Street and the rest of the world how Ford was going to stop losing ground to rivals in areas from SUVs to electrification, and Hackett came forth with a roadmap for doing that and more. The automaker plans to is reduce that to 96 in the next generation. Jim Hackett, CEO Ford recently announced to investors that Ford intends to slit the costs of $14 billion in the following 5 years. Flagship models such as the F-150 and Mustang will feature hybrid technology by 2022 alongside a fully electric small SUV.

In another big strategic change the company will reallocate $7 billion from cars to SUVs and trucks, which are more profitable. Global demand for those vehicles is rising, and they are critical to Ford's bottom line. The automaker plans to cut some cars from its lineup, but didn't name them on Tuesday.

Ford hasn't shared much in the way of details yet. By 2019 Ford intends to install them in all US cars and by 2020 in all global vehicles.

Ford is also looking to address its perceived shortcomings in China, and last month announced it was launching an electric vehicle joint venture in the country, where it is working in partnership with local manufacturer Zotye.

One way to cut costs will be to offer fewer variations of Ford's models, Hackett said.

The company in September announced a partnership with San Francisco-based Lyft to develop autonomous vehicles.

"We have created a box of assets that we can pull out and use for various things", Klevorn said. The company expects adjusted earnings of $1.65 to $1.85 for the full year.

John Rosevear owns shares of Ford. Hackett took over from former CEO Mark Fields in May. He became chairman of Ford Smart Mobility in March 2016 after a stint as interim director of athletics at the University of MI.

Investors immediately responded favorably, giving Ford shares a 0.5% bump on Tuesday. It's not yet clear if his pitch will improve investors' confidence.

What likely will be gone are some of Ford's slower-selling passenger auto models, Hackett and his lieutenants emphasized during a lengthy meeting with analysts and the media.

Hackett, who joined Ford a year ago to lead its autonomous vehicle division before replacing Fields at the helm of the company, added Ford will automate its manufacturing process, a move that will result in cost savings of approximately $14bn. In January a financial forecast for the year 2018 would be presented.

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