Ford’s future strategy focuses on trucks and vans 0

Fords-future-strategy-focuses-on-trucks-and-vansFord is looking to the future. Despite being one of the world’s leading manufacturers of extremely popular, high profit cars and trucks, the Blue Oval is planning a strategy to ensure it remains relevant at the forefront of motoring for years to come.

Earlier in September, several Ford executives started to outline the company’s new direction to potential investors.

The basic premise of the strategy is that Ford will optimise what it calls its four “profit pillars”, whilst investing in three specific areas it hopes will grow as their future vision becomes a reality.

These profit pillars won’t purely be funding the new investments; they’ll continue to be big players themselves in Ford’s bottom line for years to come.

The most important of these ‘pillars’ are Ford’s high selling trucks. This is unlikely to change into the future. CEO Mark Field said: “”We’re a global leader in the highly profitable truck and van segments,” Fields said.”We’re number 1 with F-Series around the world. We’re number 1 with Transit around the world, and we’re number 3 and growing with Ranger around the world.”

This isn’t just ‘up talking’. Ford’s F-Series line has been the highest selling vehicle range in the U.S. for decades. This is very important: Ford has operations all over the globe, but their trucks create a hugely disproportionate amount of profit. To neglect your golden goose would be bad business sense.

Ford’s commercial vehicles get less attention but are also crucially important. In the UK and mainland Europe, Ford Transit vans are fixtures of the mobile business sector. In China too, they are scaling the sales charts. Ford intends to build upon their success as well.

“We deeply understand these customers,” Fields said. “We know how they use our products. And we really understand what makes them tick and what’s important to them around durability and quality, but always with an eye toward cost of ownership. And we’re expanding what I call our moat, and I think we’ve proven in the past that we can not only defend this, but also at the same time, grow it as well.”

Ford also believes that its future success in trucks and vans doesn’t lie solely with the products themselves, it’s also keen to expand its relationships with key commercial customers – and its manufacturing chops.

“Our leadership in trucks and vans is based on, I think, 4 very important elements,” Fields said. “First, really understanding that customer, really deep customer insights. That leads us to have very trusted relationships with our customers based on our sales and service capabilities.

We have a broad range of configurations, which is important for many of these customers who buy a portfolio of vehicles. And of course, we have advanced manufacturing capabilities, which is so important to build that complex range, and to do it at scale affordably and with the quality our customers expect.”

Other car makers around the globe don’t place electric versions of trucks and vans high on their priority lists. But for Ford, these are huge sellers, and the company want to maintain that for the foreseeable future.

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