The fastest way to cut $7-8B in costs would be
- eliminate Ford Next
- eliminate half of the LL ranks and two thirds of the “executives.”
- cut Farley an$ Bill’s salaries by 90%.
There. Done.
Ford targets $7B-$8B cost disadvantage, dysfunction
BY JORDYN GRZELEWSKI
The Detroit News
Ford Motor Co. executives on Wednesday provided greater insight into costs that are weighing on the Dearborn automaker's financial results, with CEO Jim Farley saying “fundamental change” is needed, especially around how vehicles are engineered, sourced and built.
Those costs add up to a $7 billion to $8 billion disadvantage for Ford compared with its traditional rivals, Chief Financial Officer John Lawler said; those expenses will be the target of reductions in the coming years amid the costly shift to electric vehicles.
During the company's fourth quarter and full-year 2022 earnings report earlier this month, Farley referenced “dysfunctionality” within the company's legacy business that was dragging down results.