The 11th CEO in Ford’s 117-year history officially took the wheel Thursday.
Ford's Plan for Growth: New Ford Motor Company F CEO Jim Farley plans on turning Ford around. The plan outlined by the company is:
“Turn around automotive operations; allocate capital to Ford’s strongest franchises and high-growth opportunities; produce compelling, uniquely Ford electric vehicles at scale; and stand up new AV-enabled businesses.”
The operational metrics outlined during a virtual town hall with employees include top-line growth, operational excellence, high quality customer satisfaction, sustained adjusted EBIT margins of 8% and strong automotive adjusted free cash flow.
Farley put an emphasis on improving quality, reducing costs and accelerating the restructuring of underperforming businesses.
Ford's New Regional Business Units: Ford announced the creation of three regional business units: The Americas and International; Europe; and China. The new regional business units are being created to drive decision-making and accountability, according to Ford.
Ford Management Changes: John Lawler, a Ford veteran, was named as CFO. He replaces Tim Stone, who is leaving the company to join an AI startup.
Lawler has experience leading autonomous vehicle efforts and was also once the head of Ford China.
Plans were announced to add a new CIO and CMO for Ford.
One person is currently handling chief marketing efforts and running the Lincoln brand; the job will now become two roles.
Ford Electric Vehicles: The town hall included discussion on Ford’s commitment to electric vehicles. Farley said Ford needs to offer compelling Ford electric vehicles at scale. This includes the Transit, F-Series trucks, Mustang, SUVs and the Lincoln brand.
Ford had previously committed $11.5 billion through 2022 to electric vehicles. The company has spent half of this amount. By the end of 2020, Ford hopes to have 15 electrified vehicles.
What’s Next: Ford could outline more details on its plans soon. The company has what it calls a strong lineup of vehicle releases coming in the short-term, including the new F-150, the top-selling pickup in America, the electric Mustang Mach E and the Bronco.
F Price Action: Shares of Ford were up 2.07% at $6.89 at the close Friday. Shares have fallen 27% in 2020. Ford shares lost 40% of their value under prior CEO Jim Hackett.
New Ford CEO Jim Farley. Courtesy photo.
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