(Posted on Apr 21, 2019 at 01:54PM by Danielle Smyth)
After announcing job cuts and cost-cutting measures in 2018 as part of a restructuring plan that includes a complete revamp of the Ford lineup and ambitious plans to bring 40 EVs to market by 2022, the company’s profit margin in 2018 was only 4.4 percent, down from 6.1 percent in 2017.
Of course $11 billion in investments can eat into profits. So it’s probably too soon to tell whether the company’s turned the corner or not, but the move to drop sedans and most cars—including the Fiesta, Focus, Fusion, and Taurus—from its lineup to make way for more crossovers, SUVs, and EVs is the strategy in a nutshell. A Ford Mustang performance EV will start production at one of the Ford Mexico plants in 2020 for sale the same year.
“Just trust me on this. You’re going to be reading a lot about Ford performance going forward,” Ford CEO Jim Hackett told guests at the Detroit Economic Club April 12. There’s no question that this is going to mean great things for the automaker in the future.
A few days later, the company announced leadership changes that included promoting Joe Hinrichs president, Automotive, effective May 1. He’s tasked with achieving sustainable global earnings before taxes and interest of at least 8 percent.