It is now negotiating with the Detroit Three on a contract that expires on Monday and is anxious that three plants could close in the coming years if automakers refuse to commit to new investments. The second-largest US 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.
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The maker of the bestselling F-150 pickup truck and the iconic Mustang muscle auto has said it will invest $4.5 billion to bring 13 new electric and hybrid vehicles to market by 2020.
Fields and other top Ford executives are scheduled to meet on Wednesday with investors and analysts to address concerns that the automaker is heading into a cyclical downturn in the United States market, which generates the bulk of Ford’s profit.
Ford also reiterated its commitment to developing an autonomous vehicle by 2021.
“We haven’t ruled out doing a ride-hailing or ride-sharing business by ourselves or with partners”, Fields said. It’s also investing in companies that make sensors and maps for autonomous cars.
Mexico has seen a 40% increase in auto jobs since 2008 to 675,000 a year ago while the US saw only a 15% increase in the same period to more than 900,000, according to the Center for Automotive Research in Ann Arbor. If people want to travel by autonomous taxi or shared rides, Ford wants to provide the cars, the service or both. “For most of our history we have thought about the thing and how numerous things we have sold”.
Ford says its operating cash flow will remain positive through 2018 and the company expects financial results to improve in troubled Russian Federation and South America as restructuring efforts take hold there. It had initially forecast a profit equal to or better than a year ago, but pulled back last week after announcing a $640 million recall of 2.4 million vehicles.
Ford stock fell 1.9 percent to close at $12.14. The stock is down nearly 14 per cent so far this year. But the move from Ford is likely to set off a firestorm during the USA presidential race, where blue-collar jobs and relations with Mexico are contentious topics. But the suburban Detroit plant will get new products.
The news was revealed by chief executive Mark Field during an investor conference in MI and despite the fierce opposition of Republic Presidential candidate Donald Trump.
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Ford is also pushing an unusually large number of electric vehicles and will invest some .5bn in 13 new models that will comprise 40% of its lineup by 2020. A driver whose auto was using the system died in Florida in May in a collision with a tractor-trailer.
