Ford Set to Shift $7 Billion Toward Trucks and SUVs

Overall, financial analysts suggested that Hackett's lack of details on future products might delay reactions by Wall Street to Ford's plans, which were intended in part to boost its lagging stock price and market value.

Asked whether today's internal-combustion-engine engineers could make the leap to designing electric powertrains, Fascetti said that the latter required "a different skill set", but that Ford has "very responsible training programs for both engine and transmission experts so that they can move into those [new] areas". A shift to e-vans and e-trucks in China would also fit with Ford's reckoning that a best play globally for electrification and autonomous driving might be in commercial and delivery vehicles - a part of the market where it is already strong in the United States and Europe.

"The decision to change is not easy - culturally or operationally", Hackett said in the statement. Meanwhile, Ford announced the creation of "Team Edison", meant to accelerate the company's EV development and partnership work.

When Hackett was appointed, he carried out a 100-day review to assess the firm's strategy.

Ford is working to speed the development of the technology, though.

During his two hours presentation, Hackett said that Ford would welcome business partnerships for distributing the risks and expenses of experimenting with new technologies and services while at the same time making revenues from the selling of trucks and sports cars in North America.

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Meanwhile Tesla says that it missed its initial shipment goal for the Model 3. The company aims to cut material costs by $10 billion and engineering costs by another $4 billion over five years.

Ford shares rose 0.5 percent to $12.40 as of 4:22 NY, after the close of regular trading. This number includes the F-150 Hybrid, Mustang Hybrid, Transit Custom plug-in hybrid, an autonomous vehicle hybrid, Ford Police Responder Hybrid Sedan, and a fully electric small SUV.

Investors have been critical of Ford for waiting too long to bring a long-range electric vehicle to market, as GM did with the Chevrolet Bolt.

Ford has created a new internal group to accelerate its new electric vehicle programs. GM, for instance, just announced that it'll have 20 electric auto models by 2023.

The company claims that by using virtual assembly lines, it can save up to 25% of time spent on development processes.

Ford Motor Company is looking at the current state of the automotive industry and thinking it is time to expedite electrification plans.

  • Rita Burton