CEO, Mark Fields revealed last Wednesday that for the coming two to three weeks, they will start to produce their small vehicles in low-priced areas such as Mexico.
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Fields is targeting 8% operating margins in Ford’s core sector of manufacturing cars and trucks, but closer to 20% returns from the emerging-business operations that will be built on such trends as autonomous vehicles and mobility services.
Ford Motor chief executive Mark Fields talked to Reuters on Tuesday, as the company plans for its annual investor meeting.
Ford Motor Co Chief Executive Officer Mark Fields said on Wednesday that all of the company’s small-car production would be leaving USA plants and heading to lower-cost Mexico, drawing another rebuke from Republican presidential candidate Donald Trump. General Motors, Fiat Chrysler, and Ford – all now operate billion-dollar plants in Mexico. “We’re focused on usage where miles traveled be”, he said.
Ford did not give a precise figure for how much more profits could fall in 2017. For example, Field said the current Ford Focus can be ordered in 300 configurations of options and colors.
Ford past year said it would move C-Max and Focus production out of MI, then announced a $1.6 billion small-car factory in Mexico, but the company waited until now to announce the obvious connection.
Ford had a quick reply to Trump’s hyperbolic statement that all American jobs will be lost due to the auto manufacturer’s new plant opening up in Mexico.
Fields decision to appear on CNN came after Trump appeared earlier today on Fox News and said if elected he will impose a 35% tax on automotive imports from Mexico.
“When it comes to Ford, our commitment to creating and investing in jobs in the USA has never been bigger”, Fields said.
It had initially forecast a profit equal to or better than a year ago, but pulled back after announcing a $640m recall of 2.4 million vehicles.
Originally known as an auto manufacturer of American muscle, Ford Motors has already begun changing its image. The second-largest USA automaker said it plans to trim costs annually by $3 billion between this year and 2018, and is “re-evaluating” its strategy and business model in India.
Uber’s autonomous auto service, which took to the streets of Pittsburgh today, are Ford Fusions equipped with 3D cameras, Global Positioning System and lidar technology, according to Reuters.
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“It will take time to scale some of these new businesses”, he said. However, even if USA auto sales drop to 11 million in 2017, the company will be able to break even, said Bob Shanks, Ford chief financial officer.
