Ford future plans contemplate a simpler range with fewer models but more SUV

By:   Fedora Atjeh Fedora Atjeh   |   Oktober 04, 2017
Ford future plans

The American giant Ford Motor Company has just presented to its investors a future strategy that aims to modernize the company. The goal of the new directive, led by Jim Hackett (CEO), is to make Ford a leading player in the mobility of the future, by developing smart vehicles, among other things.

The aggressive rethinking of the company that proposes this plan is based on reducing costs and redesigning the way the company works for future success. The resources available will be allocated to regions, products and services with the greatest potential for growth and return. This means that in Ford plans there will be more SUVs and pick-ups, and fewer passenger cars.

The Detroit company reiterates its long-term goal of achieving an operating margin of 8%, which will require profound technological changes with which to confront its new competitors, starting with offering services, in addition to vehicles, all centered in the user experience.

Ford future plans

Cost reduction, connectivity, electrification

One of the pillars of this future plan is to accelerate the launch of intelligent and connected vehicles, as well as services that clients require and value. Ford claims that all of its cars marketed in 2019 in the United States will have connectivity, and by 2020 90% of all its global products will offer these solutions.

At the same time, cost reduction is a key factor in increasing profits. For example, Ford aims to save $ 4 billion in development spending over the next five years by increasing the number of common parts throughout its car offering, reducing both the complexity of orders and the need to to manufacture so many prototypes.

Assigning resources where they really are needed is also a cornerstone of Ford's plans. To begin with, $ 7 billion will go from cars to cars in SUVs and pick-up trucks, including the new Ford Bronco. In addition, the idea is to reduce the time of the development processes of new models by 20% thanks to advances in robotics, virtual reality, logistics, etc

Ford future plans

Another way to reduce costs is the future manufacturing in China of the new Focus for North America, or the pursuit of strategic partners in research and development, such as Mahindra Group (business development in India), Zoyte (development of low cost electric vehicles for China ) or Lyft (development of autonomous vehicles).

To make matters worse, the US giant has announced that it will significantly reduce its investment in internal combustion engines, specifically one-third, and will dedicate this sum of money - and the $ 5.4 billion it had previously announced - to the electrification of its range.

Finally, Ford has announced the creation of a specific division for electric vehicles that is already working on launching 13 new electrified products over the next five years, including the Ford F-150 Hybrid, the Ford Mustang Hybrid or a small electric SUV.

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