I thought this was an interesting read. Not too happy that they will be focusing on moving the Ford production plant to China and importing the vehicles to the U.S. from China. No more Mericaaa! Also, hybrid mustang... Nuff said.
https://gearheads.org/in-5-years-ford-will-be-a-dramatically-different-car-company-see-how/
Ever since Ford sacked their previous CEO Mark Fields, the newly appointed chief Jim Hackett has been on a mission of modernizing and revitalizing the company. Now, it seems, we have our first glimpses of a massive plan which could change the company from its roots.
While many of the changes are structured around massive cost savings, the truth is that Ford seeks to reimagine its product line-up. The Blue Oval wishes to adapt itself to the world of today and “focus deeply on their customers.”
Ford’s New Strategy Includes a Lot of Cost-Saving Measures
The steps Ford takes tend to resonate throughout the industry. In short, they include:
Redistributing money from developing cars into developing trucks, SUVs, and EVs
Increasing the operating margin to 8 percent (from 6.7 percent in 2016)Reducing production costs by reducing the number of models, number of versions and increasing the use of common parts across its full line-upEmbracing partnerships with foreign companies (notably from China and India)Changing its focus on electric and electrified cars by introducing 13 new models within the next 5 yearsReimagining product development and saving up to 20 percent (we guess by introducing advanced computer and augmented reality systems)
“When you’re a long-lived company that has had success over multiple decades, the decision to change is not easy – culturally or operationally,” said Hackett. “Ultimately, though, we must accept the virtues that brought us success over the past century are really no guarantee of future success.”
We Will Get Our Focus From China
The most important part of the whole plan is the relocation of Ford Focus production to China. They plan to import the car to the US from China. Also, the Fiesta and the Focus will be moving upmarket in Europe. More or less, they will get a posh interior, new elegant exterior and advanced connectivity options to match what one can get in a Golf or even an Audi A3. On the other hand, Ford seeks to drastically reduce the number of versions.
Currently, Ford offers 360 different versions of the Focus, 2,302 versions of the Escape, 35,000 versions of the Fusion and 1,168 versions of the Explorer. They will reduce the number of different versions to 26 (Focus), 228 (Escape), 96 (Fusion), and 672 (Explorer) respectively. Reducing the number of orderable configurations will definitely save a whole lot of money. Ford will actually use the savings to develop new systems focused and centered around customers.
The Internet is Ford’s new benchmark. By 2019 Ford plans to offer the option for all vehicles sold in the US, and 90 percent of those sold in China and Europe by 2020.
We Have Even More Money-Saving Strategiesreducing prototype development and productionusing common parts across the line-up (something like VW is doing with their modular platforms)Reducing money spent on ICE development by a thirdFocusing toward lower-volume, but higher-revenue sub-segments (read: selling more expensive vehicles to people with more money).
Do not think for a second that these massive savings, estimated to be in the billions (they expect to save up to 4 billion on engineering costs only), won’t go to good use. Thanks to them, the market will see the addition of a Mustang Hybrid, an F-150 Hybrid, a Transit Custom plug-in hybrid, a Ford Police Responder hybrid sedan, a hybrid autonomous vehicle, and a fully electric compact SUV.
Furthermore, a new Ranger (including theRanger Raptor we wrote about), EcoSport and Ford Bronco will reach the US. Actually, the Ford Bronco expected in 2020 will be a global effort – even Europeans will be able to buy it. Development of these cars (including five additional yet unnamed SUVs) is possible due to dramatic changes and redistribution of money. In numbers, Ford will invest $7 billion previously intended for development of cars in development of SUVs, hybrids, and EVs.
Ford is moving with the times, for sure.
Sent from my SM-G955U using Tapatalk
https://gearheads.org/in-5-years-ford-will-be-a-dramatically-different-car-company-see-how/
Ever since Ford sacked their previous CEO Mark Fields, the newly appointed chief Jim Hackett has been on a mission of modernizing and revitalizing the company. Now, it seems, we have our first glimpses of a massive plan which could change the company from its roots.
While many of the changes are structured around massive cost savings, the truth is that Ford seeks to reimagine its product line-up. The Blue Oval wishes to adapt itself to the world of today and “focus deeply on their customers.”
Ford’s New Strategy Includes a Lot of Cost-Saving Measures
The steps Ford takes tend to resonate throughout the industry. In short, they include:
Redistributing money from developing cars into developing trucks, SUVs, and EVs
Increasing the operating margin to 8 percent (from 6.7 percent in 2016)Reducing production costs by reducing the number of models, number of versions and increasing the use of common parts across its full line-upEmbracing partnerships with foreign companies (notably from China and India)Changing its focus on electric and electrified cars by introducing 13 new models within the next 5 yearsReimagining product development and saving up to 20 percent (we guess by introducing advanced computer and augmented reality systems)
“When you’re a long-lived company that has had success over multiple decades, the decision to change is not easy – culturally or operationally,” said Hackett. “Ultimately, though, we must accept the virtues that brought us success over the past century are really no guarantee of future success.”
We Will Get Our Focus From China
The most important part of the whole plan is the relocation of Ford Focus production to China. They plan to import the car to the US from China. Also, the Fiesta and the Focus will be moving upmarket in Europe. More or less, they will get a posh interior, new elegant exterior and advanced connectivity options to match what one can get in a Golf or even an Audi A3. On the other hand, Ford seeks to drastically reduce the number of versions.
Currently, Ford offers 360 different versions of the Focus, 2,302 versions of the Escape, 35,000 versions of the Fusion and 1,168 versions of the Explorer. They will reduce the number of different versions to 26 (Focus), 228 (Escape), 96 (Fusion), and 672 (Explorer) respectively. Reducing the number of orderable configurations will definitely save a whole lot of money. Ford will actually use the savings to develop new systems focused and centered around customers.
The Internet is Ford’s new benchmark. By 2019 Ford plans to offer the option for all vehicles sold in the US, and 90 percent of those sold in China and Europe by 2020.
We Have Even More Money-Saving Strategiesreducing prototype development and productionusing common parts across the line-up (something like VW is doing with their modular platforms)Reducing money spent on ICE development by a thirdFocusing toward lower-volume, but higher-revenue sub-segments (read: selling more expensive vehicles to people with more money).
Do not think for a second that these massive savings, estimated to be in the billions (they expect to save up to 4 billion on engineering costs only), won’t go to good use. Thanks to them, the market will see the addition of a Mustang Hybrid, an F-150 Hybrid, a Transit Custom plug-in hybrid, a Ford Police Responder hybrid sedan, a hybrid autonomous vehicle, and a fully electric compact SUV.
Furthermore, a new Ranger (including theRanger Raptor we wrote about), EcoSport and Ford Bronco will reach the US. Actually, the Ford Bronco expected in 2020 will be a global effort – even Europeans will be able to buy it. Development of these cars (including five additional yet unnamed SUVs) is possible due to dramatic changes and redistribution of money. In numbers, Ford will invest $7 billion previously intended for development of cars in development of SUVs, hybrids, and EVs.
Ford is moving with the times, for sure.
Sent from my SM-G955U using Tapatalk
