Ford president and CEO, Jim Hackett is making a bold move to protect the company’s profitability and maximize future returns. He said
“We are committed to taking the appropriate actions to drive profitable growth and maximize the returns of our business over the long term. Where we can raise the returns of under performing parts of our business by making them more fit, we will. If appropriate returns are not on the horizon, we will shift that capital to where we can play and win”.
The auto market in the US is deteriorating and Hackett is shrinking the Ford lineup of cars marketed in the US to only the Mustang and the Focus. The model lines to be eliminated are the Fiesta, Fusion, C-Max and the Taurus.
They will add hybrid electric powertrains to the profitable models and they plan on exploring vehicles that will be completely electric. With this strategy, they are betting to evolve their product line to provide the consumer with a more innovative vehicle. By using this strategy, they are hoping the company can survive the downturn in the vehicle market.