Hackett realigned executive ranks during his first few weeks into a more rational flowchart.
Though its revenue has germinated since the Great Recession so have the costs engendering Dearborn, Mich. -based automaker to omit its goal of an 8 percent automotive operating margin. Ford will provide a financial forecast for 2018 in January.
Other automakers have cautioned that shifting to all-electric vehicles might damage profit margins.
Ford's new CEO has his eye on the prize.
Given this latest development, I think it's clear that Ford shareholders can expect Hackett to address both issues in his presentation on Tuesday. Shares of Ford gained 0.6% after ending the regular trading session up 2.1%. Nevertheless, since July 2014 Ford's share price is low by 30 %.
While Hackett made it clear Ford intends to accelerate those new lines of business, he stressed that it plans to remain "in the auto business, moving goods and people around".
Concurrent with the new emphasis on electrification, Ford is also redirecting $7 billion from vehicle to truck and SUV development, and reducing the number of cars it offers.
Ford is playing catch up in some areas.
Ford is part of what is known as the "Big Three" of United States carmakers, along with General Motors and Fiat Chrysler.
The automaker will target reducing materials costs by $10 billion and engineering outlays by $4 billion over the next five years.
Outlining a campaign to increase revenue while controlling expenses, Hackett said Ford had to become a more disciplined company. The company will invest 4.45 billion investment which will bring models such as F-150 hybrid, Mustang hybrid, and EV by 2020.
The company's investor briefing said it would start "allocating capital where Ford can win the future". Markaby said Ford will add more pure battery-electric vehicles, but he gave no details. Ford creates "Team Edison" to speed development of EVs Ford's Sherif Marakby said in an interview, the company has created "Team Edison", a group focused on speeding up the worldwide development of electric vehicles.
"We have too much cost across our business", he said. For example, customers can now order a Ford Fusion sedan in 35,000 possible combinations. Under Hackett's vision, that'll drop to just 96.