Jim Hackett said Ford would shift resources from traditional cars to SUVs and trucks, while investing in electric power and tech services. The overall reduction in spending is about $14 billion – $4 billion of which will be product engineering cuts, and $10 billion of which will be materials savings. That’s because Ford has decided its 6-percent margins aren’t enough to sustain itself. It wants at least 8-percent margins, and also to invest properly in autonomy and electrification (including the EV-focused Team Edison group, of which there are few details at the moment).
In addition, Ford will yank $7 billion from car development to fund truck and SUV development, including the 2018 Ranger and 2020 Bronco and three other trucks to be determined later. Ford also claims that one of them will be an EV SUV. The company will also reduce the buildable configurations of possible cars. Did you have any idea the Fusion had this many configurations? Neither did we. What this means is more popular options group bundling, and a lot fewer standalone options, in all likelihood. That’s great for manufacturing efficiency but perhaps less good for consumer choice. Read more
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