Ford set to move away from traditional cars 0

Ford’s new boss, Jim Hackett, has announced a new direction the brand intends to take that involves moving away from traditional vehicles. The proposals are being made to ensure the company continues to “fit” in a industry approaching a period of extreme change.

Hackett said Ford will gradually move its resources away from traditional vehicles towards SUVs and trucks, while investing heavily in electric power and new technology.

The company also intends to fully automate its manufacturing process, a move that should help cut costs by £10.5 billion.

Ford’s new goals were announced following a 100-day review that scrutinised all aspects of the operation.

Hackett took over from the company’s former head, Mark Fields, who left after just three years in the position. During his time at the helm, Ford had two of the most profitable years in the company’s history. However, this was offset by a dropping share price.

Investors have voiced concerns that Ford are not embracing emerging markets, such as China and the autonomous vehicles sector. Hackett moved to alleviate these fears.

“The industry is staring at the tech companies coming at it. That’s where I feel I bring some experience to Ford, where I can help,” said Mr Hackett, who joined Ford last year to lead its autonomous car division before taking the top job.

“Fitness is the way you protect your broadsides from disruption,” he told an investor meeting in New York on Tuesday.

Ford also intends to make its vehicles more tech-orientated, aiming for 90% of its sales globally to be “built with connectivity” by 2020.

Mr Hackett said Ford had been slow to shift to electrification due to rapidly escalating costs. But thanks to a series of partnerships, such as with Zotye in China, where the government has called for quotas related to electric car sales, this has become a more viable proposition.

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