New Ford Chief ‘Shifts into New Gear’ Towards Electric Future of Cars

The new head of American Ford has presented plans that are intended to equip the automotive giant for market competition amid far-reaching changes in the industry.

According to Jim Hackett, Ford will redirect resources from the production of traditional cars to sports utility vehicles and trucks, and invest in electric drive and technological services, reports the BBC.

The company will also automate its production processes to reduce costs by $14 billion. Hackett has outlined new goals for the company after a 100-day analysis of the situation. In May, he replaced Mark Fields as CEO, who had been at the helm of Ford for three years.

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During that period, the American company recorded two of its most profitable years, but its stock price has fallen.

Investors are concerned that Ford is moving too slowly in markets like China and in the automated vehicle sector to outpace competitors, including new ones from Silicon Valley.

– The industry is hypnotically watching the tech companies that want to take it down. I believe I could bring experience and help Ford in that area, said Hackett, who joined the American company last year as head of the autonomous vehicle division.

He believes the company needs to automate and simplify production processes, and invest $7 billion in vehicles that sell well, such as sports utility vehicles and light trucks.

He also plans to technologically develop Ford’s vehicles, with 90 percent of them worldwide expected to be ‘connected’ by 2020.

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Company leaders believe that features such as compatibility with phones and other devices will attract more customers to the American brand.

They have also opened up opportunities for new lines of business, such as medical transport and online ordering of commercial transport and goods delivery.

The company already provides minibus transport services on certain routes in four American cities based on Internet orders and plans to expand the network by the end of the year.

Ford has also reported signing a transportation cooperation agreement with cities like Mumbai, India.

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Hackett also believes that Ford has been too slow in transitioning to electric drive due to costs. They are currently working on partnerships with companies like Zotye in China, where the government is seeking quotas for electric vehicle sales.

Company leaders have stated that they are confident in the prospects in China, where the company currently lags behind competitors. They are also closely considering operations in Europe, which are partially affected by Brexit and the weakening pound.