
After much speculation, Ford CEO Jim Hackett has finally outlined where his company’s dollars will be spent in the foreseeable future. Hackett spent his summer performing what Ford called a “four-month deep dive” into the company’s strategy and business operations to see what changes needed to be made. His conclusions? This may surprise a few readers, but Ford will continue building and selling automobiles.
Alright, that isn’t a bombshell, but the brand is trying to frame itself as the Ford you’ve always trusted while also letting everyone know it’s still a “mobility company” with its eyes fixed on tomorrow. Without the public relations veneer, that plan translates into a reduced number of production models and trims, more money for electrification R&D, less for internal combustion engines, and a significant reduction in material costs.
Hackett’s address also served to reassure the nervous shareholders who ousted his predecessor, Mark Fields. Ford’s stock declined more than 30 percent during Fields’ tenure and many complained that his vision of transitioning from a traditional automaker to a Silicon Valley look-alike was partly to blame. Hackett did everything in his power to ease those fears.
“We’re going to be in the vehicle business moving both people and goods. Some myth about not being in the car business is gone,” Hackett told Wall Street. (Read More…)
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