There's a heavy air of anxiety at Ford Motor that brings to mind the auto manufacturer's near-collapse during the dark days of the Great Recession, its incoming chief operating officer revealed.
One of Ford's new top honchos summarized his new plan of action for the firm's restructuring late Wednesday, which includes cost reductions and more fuel-efficient vehicle models in a period in which the company will roll out a reconfigured F-150 pickup truck.
"All the people at Ford know the situation we are in," Jim Farley, the automaker's 13-year veteran, told investors at a Wolfe Research gathering in New York on Wednesday. "I can see it on looks of my colleagues and it takes me back to around 10 years ago," Farley said.
Other major plans include fast-tracking Ford's venture in vehicle integration and its commercial business, Farley - who will start his position as Ford COO on March 1 following his appointment earlier this month - said during the Wolfe conference.
Putting an optimistic view on it, Farley pointed out that such tough situations are when the company functions at its best with strong convictions and masterplan, which he will spearhead along with President and chief executive officer, Jim Hackett.
Farley stressed that they have to "fix a number of things," citing a need to trim down $5 billion in warranty expenditures, unveil 10 important global cars in the next two years, and cut material and delivery costs.
Farley's comments follow the company's stock closing at $7.23 a share - the lowest closing market price since 2009. Ford's stocks in pre-market session Wednesday rallied over 2 percent to around $7.41.
Ford disclosed that it will also put more premium on advances in commercial vehicle profits. "It's a growth opportunity for Ford," Farley said, as he cited a focus on boosting the electric vehicle business of the second-biggest auto company in the US.
Farley is looking into accelerating a "double transformation" whose objective is to turn around the company's conventional automotive operations while accessing new growth segments like electric and autonomous vehicles.
Ford is undergoing a facelift of sorts globally and faces falling orders in China, its second-biggest source of revenue. Hackett said the company needs to "move with greater momentum."
The Dearborn, Michigan-headquartered carmaker has booked $3.7 billion of an estimated $11 billion in global restructuring that Ford previously announced it would undertake, and projects to book another $900 million to $1.4 billion in the next quarter.
Farley said part of those major restructuring will focus on growing the company's global fleet and data analytics. He also emphasized establishing customer loyalty with new technologies, citing giant rival Tesla, as an example.
