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Ford's incoming COO focuses on cost cuts, launches, change
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DETROIT (Reuters) – Ford Motor Co's (F.N) incoming chief operating officer outlined his priorities for the company’s turnaround on Wednesday, including cost cuts and more efficient new-vehicle launches in a year in which it will introduce a redesigned F-150 full-sized pickup truck.
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Other key plans include speeding up Ford's push in vehicle connectivity and its commercial vehicle business, strategy chief Jim Farley, who begins his role as Ford COO on March 1 after being appointed earlier this month, said at a Wolfe Research conference in New York.
"We have to fix a number of things," he told investors, citing a need to cut $5 billion in warranty costs, successfully launch 10 key global vehicles in the next two years, and slash material and logistics costs.
FORD MOTOR COMPANY
Ford has acknowledged that mistakes proved costly in its introduction of the redesigned Explorer SUV.
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Electric carmaker Tesla Inc (TSLA.O) has shown how connected vehicles and over-the-air updates can build customer loyalty, Farley said, and Ford could better profit from the data generated in vehicles and improve its customer service.
Ford also will focus more heavily on advantages in commercial vehicle sales.