Ford CEO says a big surprise comes next year with electric cars
Ford Motor is launching new electric cars as soon as next year, said CEO Jim Hackett CNBC on Sunday.
Previously, Ford has announced its plans to invest $ 11 billion in electric cars by 2022 and produce 40 hybrid and full electric cars in a plan to revive its slow business, but the company's boss told CNBC that drivers should be prepared for a "big surprise" from Ford.
"We were talking about a big investment in electric cars. We have 16 models that are in design and development. We have a pretty big surprise next year, "said Hackett CNBC's Phil LeBeau on the sidelines of the Detroit Auto Show, starting this week.
Vehicle performance fell during the first nine months of 201[ads1]8 by 27 percent from the same period in 2017. Benefits, like the tumblet 39 percent in 2018, have hunkered below $ 10 per share for the first time since 2012.
"Part of the pain in the margins as well [is] because the vehicles are old. We have, on average, the oldest fleet in the industry, and we shall have on average the latest fleet. 75 per cent of the portfolio is transferred, says CEO.
The company is also in the midst of a comprehensive restructuring aimed at reducing costs by $ 14 billion over the next five years. Ford recently announced plans to cut thousands of jobs in Europe as well as interrupt some unprofitable lines there.
However, Hackett defended Ford's actions to correct its ship. He told CNBC that investors "needed to be a little patient with some of the long-standing issues that have not been addressed as I should represent. In less than 19 months, I've addressed each one of them." Many companies have expressed concerns about US brands potentially falling out of favor in China. For example, tech giant Apple beats its forecast in January and sounds alarms that Hackett is not that worried.
China's optimism remains high with us, he told CNBC. Even at the highest level of government, they see it as a family owned business that Central America loves. The Chinese will relate to American businesses like that, "Hackett added.
