Ford’s new CEO has his eye on the prize.
Jim Hackett was brought in to replace Mark Fields as CEO in March, and since then, he has been exploring ways that Ford can improve its business operations.
On Tuesday, Hackett gave a presentation to investors, outlining how the “Blue Oval” will cut costs and position itself such that it can become “the world’s most trusted mobility company,” according to a press release.
“When you’re a long-lived company that has had success over multiple decades the decision to change is not easy — culturally or operationally,” Hackett said in a statement. “Ultimately, though, we must accept the virtues that brought us success over the past century are really no guarantee of future success.”
Here are Ford’s five main goals that it hopes will help it achieve long-term success:
Accelerate the introduction of connected, smart vehicles and services:
— Ford claims that 100 percent of its new vehicles in the U.S. will include smart connectivity by 2019.
Rapidly improving fitness to lower costs, release capital and finance growth:
— The American automaker aims to reduce engineering costs by $4 billion over the next five years by utilizing more common parts throughout its lineup, condensing available packages and producing fewer pre-production prototypes.
Allocating capital where Ford can win the future:
— It already has begun reallocating $7 billion from cars to SUVs and trucks, as is evident from Ford’s discontinuing the Fiesta in the U.S., while bringing new models such as the Ranger and EcoSport stateside.
Embracing partnerships:
— One of the major ways the automotive industry is changing is through the necessity of partnerships, both between automakers and with outside technology companies. Ford already is working toward embracing this trend through its partnering with Domino’s, as well as electric vehicle manufacturer Mahindra.
Expanding electric vehicle opportunities:
— This reiterates Ford’s pledge that it will introduce 13 new electric models, including hybrid versions of the F-150 pickup and Mustang, in the next five years.
Thumbnail photo via Ford
