Ford Motor CEO Jim Hackett announced in a presentation to investors that Ford will be moving away from gasoline-powered passenger cars and focus on the sport utility vehicles (SUVs) and the electric and self-driving vehicles markets. He said Ford was planning for a global market in which two-thirds of all vehicles sold will use hybrid or all-electric power by 2030.
Mr. Hackett also announced plans to invest more in regions that are growing and profitable, including China, and less on slower-growing regions such as Europe and India. Ford is shifting $7 billion that was previously targeted for developing new cars toward the new focus.
He also stated that an immediate area of emphasis will be “smart and connected vehicles” which collect data about their operations and surroundings to improve safety and expand new digital services. The goal is that by 2019 all US Ford models will be connected and that by 2020, 90 percent of all new models, regardless of market, will offer such connectivity.
In addition Mr. Hackett promised that new designs and operations would cut billions in material costs and engineering expenses over the next five years.