Here's How A Stronger Performance In North America Can Impact Ford Motors

Ford shares slide on disappointing earnings outlook

The Dearborn automaker is trying to deal with a shifting automotive industry that is feeling pressured to show progress, especially in China and Europe, on expanding its electric vehicle offerings.

In North America, Ford is moving away from less profitable lines of passenger cars and doubling down on popular trucks, vans and SUVs, said James D. Farley, the company's president of global markets.

That's a significantly higher level of investment than previously disclosed and includes costs associated with developing dedicated electric vehicle architectures. Or, looked at another way, a total of 40 models with either hybrid, plug-in hybrid, or fully electric power trains- up from the 15 announced a few weeks ago. It also would make the USA less competitive than the world's other manufacturing centers, he said.

"We want to make a statement about the company that we're electrifying our iconic vehicles", Farley says. It plans to bring out 24 hybrids and 16 electric vehicles by 2022. And European and Japanese companies also use Detroit as a showcase for their new models. Hitting on these points is the idea of reducing the number of orderable combinations for products like Escape and EcoSport from thousands to one or two dozen, which will achieve the aims of cutting manufacturing costs and upping the quality of each vehicle.

Ford is increasing its electric vehicle efforts to help mitigate climate change.

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"We're starting to telegraph where we're going to play in the electrified business around the world", he said. After all, Ford invented the pony auto when it introduced the Mustang more than 50 years ago and helped to create the modern sport utility vehicle when it put a passenger auto body on a Ranger pickup chassis and called it the Explorer.

Ford president and CEO Jim Hackett talks about the culture and future of Ford.

The plan was finalised in recent months after an extensive review, a person familiar with the process said.

"The big question is how quickly consumers will adapt as electric is only 1% of the market right now", she said. The North American spec is the facelifted version of the one which is on sale in global markets and which means the ASEAN-spec models which are slated to receive similar updates soon.

"Part of it is about tougher regulation but also the expectation that electric vehicles will support autonomous driving".


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