Ford CEO Jim Hackett said: "We're going to feed the healthy part of our business and deal decisively with areas that destroy value. We're starting to understand what we need to do and making clear decisions there".
In mid-morning trading, shares of Ford were up around 2.5%, at US$11.40.
Ford said it expects pre-tax profit margins of eight per cent globally and 10 per cent in North America by 2020, ahead of a previous target of 2022.
Ford is widening its hybrid drivetrain line-up to include the Escape SUV, sold as the Kuga in Europe, amid declining demand for diesel engines in the region. According to the company, SUVs will have a big impact on the market by 2020 so the manufacturer wants to jump on that bandwagon in the near future.
"Everything will be on the table" to fix Ford, Shanks told reporters in Dearborn, Michigan, where the company is headquartered. It has already made a lot of investment in its mobility services since the start of this year. The company will cut $5 billion from capital spending from 2019 to 2022, meaning it will only have $29 billion instead of $34 billion to burn.
The announcement was made with little fanfare as it was tucked away in the company's first quarter financial results. The plant will continue to make the Police Interceptor Utility, which accounts for 80 percent of the police market, said Joseph Hinrichs, Ford's executive vice president and president of the Americas.
The Ford Fiesta, Fusion, Taurus and most Focus sedans all will die as their current generations play out. "Ford is committed to rolling out battery-powered cars that could compete with Tesla Inc.in 2020 and offering hybrid versions of its most popular sports cars, trucks and SUVs", observes Christina Rogers for the Wall Street Journal. If Ford phases out this platform, then Lincoln will undoubtedly suffer, too.
Hinricks said Ford will "invest heavily" in the plant so it can make the next-generation Explorer and the Aviator SUV, but declined to go into details. "In a conference call on Wednesday, the chief executive said Ford will outline a full turnaround plan for investors and analysts on September 26", the NYT's Boudette reports.