The new chief of Ford has revealed the plan the American carmaker has to keep up with the changes in the industry, informs the BBC.
Jim Hackett has announced that Ford will move their traditional cars resources for SUV’s and trucks and at the same time, invest in electric cars and technology services.
The US manufacturer will also automatize technology processes, resulting in a $14 billion cost reduction.
Hackett introduced the targets after 100 days of assessing the situation at Ford.
He became head of the company in May, after replacing Mark Fields, who served for three years.
The last two years of the three were the most profitable in the company’s history, but the share price fell.
Investors have been concerned that Ford is not moving fast enough in markets like China and electric and autonomous cars to keep up with the competition.
Hackett says the automaker needs to automatize, simplify production processes and invest $7 billion in successful products such as SUV’s or trucks that have led the US sales top this year.
Ford also wants to further modernize its cars, and by 2020 90% of its vehicles can be easily connected to phones and other mobile devices.
The American manufacturer also wants to expand on other business areas such as medical or commodity transportation and car rental.
Ford is already operating a shuttle bus between four US cities called Chariot and plans to extend this niche by the end of next year.
In this regard, the company has signed agreements with several cities around the world, including Mumbai.
Hackett explained that Ford has not so far focused on electric cars because of high costs. But there are partnerships in this area, such as Zotye in China, where the government has asked for a certain share of electric cars on sale.
Ford has high hopes in China, but it is watching closely what is happening in Europe, where the affairs of Americans have been affected by Brexit and the sterling of the pound.