In the meantime, Ford Motors also announced the creation of "Team Edison", meant to accelerate the company's EV development and partnership work. It stands to reason that a considerable amount of capital could be saved by not having to pay a supplier for the development and production of electric motors to be used in such vehicles.
Amid the changes the auto giant is making are reallocating $7bn of capital from cars to SUVs and trucks and reducing spending on combustion engines and redeploying that into electrification. Last year, Mark Fields, former president and CEO, said autonomous vehicles and new transportation services would set the company up for long-term profits, but hurt profits in the short term. They've explained what they do and how they do it.
Ford shares were little changed after hours as Hackett and other executives presented their outlook. Ford won't to walk away from small cars in the USA, as FCA has done, but it will pursue more-profitable niche segments, such as sportier versions of the Focus, executives said. 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.
Ford shares rose 0.5 percent to $12.40 as of 4:22 p.m.in NY, after the close of regular trading.
Hackett's strategic update, scheduled for 4:30 p.m. Tuesday in NY, will set the tone for his tenure as CEO.
"In the past few years, Ford simply hasn't had a compelling narrative that investors could latch onto", Barclay's analyst Brian Johnson wrote in a recent note to investors.
Signs are growing that Ford is preparing a major electric-car development effort. The company says it plans to build the next-generation Ford Focus for North America in China to save money. Ford intends to cut expenditure on internal combustion engines by a third by 2022.
"We have too much cost across our business", he said.
Ford will be open to more collaborations to spread the expenses and risks of simultaneously developing new innovation and services while churning out profit from selling trucks and sport utility vehicles in North America, Hackett stated throughout an nearly two-hour presentation.
General Motors the same day outlined plans to put 20 electric-battery and fuel-cell vehicles on the roads by 2023.
Hackett also mentioned in his presentation that another way of cutting costs would be to offer fewer modifications in Ford's vehicle models.
What do you make of Ford's plans? The future model will be ordered in only 26 combinations, Hackett's presentation said.