UPDATE: Ford to 'attack' costs, shift focus to SUVs, trucks, electric cars
By Mike Colias
Automaker to reallocate $7 billion, look to high-growth areas
Ford Motor Co. will shift about $7 billion toward the development of more trucks and sport-utility vehicles while "attacking" costs, part of new Chief Executive Jim Hackett's strategic plan for the No. 2 U.S. auto maker.
Hackett, the former office-furniture executive appointed in May, is scheduled to outline his strategy to investors and analysts in New York late Tuesday. He plans to emphasize speedier action to deploy capital in fast-growth regions and product lines while positioning the auto maker for a future of electric vehicles and connected, automated cars, according to a summary provided by Ford.
Moving capital investment to higher-margin trucks and SUVs is a response to fast-shifting consumer tastes in the U.S. market and abroad, as buyers abandon sedans for vehicles with greater utility and space. Part of the $7 billion capital reallocation includes reintroducing the Ranger pickup truck and Bronco SUV in North America and moving production of its next-generation Focus small car to China, plans that were previously disclosed.
Ford (F) also will shift about one-third of its scheduled investment in gas and diesel engines into cars that run fully or partly on battery power. That will come on top of $4.5 billion the company plans to spend through 2020 to expand its electric-vehicle lineup.
An expanded version of this report appears on WSJ.com (https://www.wsj.com/articles/ford-to-focus-on-high-growth-areas-cost-cutting-1507064473?mod=mktw).
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