This Is the Year, Ford CEO Tells Employees

Steph Willems
by Steph Willems

Of all the Big Three domestic automakers, Ford’s direction seems the most ambitious and confusing. Since taking the helm less than two years ago, CEO Jim Hackett has tried to articulate his vision for both the company and the country’s future roads, sometimes with head-scratching results.

There’s no doubt that change is afoot. The company has already ceased production of all but one of its non-Mustang passenger cars and taken the first steps to getting its lagging overseas operations in order. But 2019 is the pivotal year, Hackett said in a memo to employees. For the sake of Hackett’s future, it had better be.

In the memo, obtained by The Detroit News, Hackett said 2019 is when the automaker turns the corner “toward a really bright future.”

He acknowledged that change can be slow to come, but it doesn’t come at all without a plan. In Ford’s case, that plan is an $11 billion roadmap to invest in electrification and autonomous driving, turn around its Chinese, South American, and European businesses, and reduce its employee headcount. Overseas, action has a lready been taken, most recently in Brazil. Its planned global workforce reduction remains hazy in scope, but analysts expect a major cull in salaried employees.

Hackett says the company will reveal the size of layoffs by mid-2019, adding that that the job cull is the price it must pay for adding so many new employees after the recession (only to ultimately miss targets).

“It’s natural for people on the inside and outside to raise doubts and ask tough questions as they seek clarity and certainty about our future,” Hackett wrote in his memo. “This is not a Ford phenomenon by the way. Many pundits dismissed Fiat Chrysler as a lost cause coming out of Chapter 11 and predicted Tesla would go bankrupt years ago.”

Next year’s introduction of a long range, Mustang-inspired electric crossover will be accompanied by the return of the Ford Bronco and a unibody crossover that looks to be a brawnier version of the Escape. A new Ranger will be joined by revamped Super Dutys, vans, and medium-duty trucks for 2020 and 2021.

While Ford employees may need reassurance that the automaker really does need to invest in, say, e-scooter companies in order to keep pace with upstart rivals, convincing Wall Street of the company’s viability is proving a tough sell. The automaker’s stubbornly depressed stock is an anvil hanging over Hackett’s head. Ford shares are trading lower than they were at this time last year, and lower still than in 2017.

For his future to be secured, Hackett must return upward momentum to the company’s share price.

[Image: Adam Tonge/TTAC]

Steph Willems
Steph Willems

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  • Oberkanone Oberkanone on Mar 12, 2019

    Comparisons to FCA... Many industry and financial sector experts predicted only Jeep and Ram had value and would survive. Only RAM and Jeep are receiving investment for the future. Dodge, Chrysler, FIAT are all on life support in respect to age of product. Alfa is receiving billions invested and new product though it's performance is just a bit better than 1976 Buccanneers.

    • Hummer Hummer on Mar 12, 2019

      Chrysler just had half its product line updated, what are you talking about. ;) Apparently I found out that our local Fiat dealer shut its doors, as for Dodge, it’s essentially a halo brand to get people into dealerships. Of course half of those people end up buying Rams but it works out.

  • Danio3834 Danio3834 on Mar 12, 2019

    Ford will be fine as long as they can focus on the products that matter and stop pumping the BS money shedding mobility nonsense. Focus (ha) on being a car err, light truck, company and deliver what matters. Forget about techwashing the company and change the name to F150 Motor Company right now.

    • Lorenzo Lorenzo on Mar 13, 2019

      The "F" in F150 stands for Ford. As long as the chairman is addressed as Mister Ford, it will remain a family business. Over the last century-plus, that's been both a blessing and a curse. We'll see which it is in the coming years.

  • Dukeisduke Is the Volvo EX30 even on sale yet? It was pulled from the NACTOY awards because they were having software problems with the vehicle.
  • Wjtinfwb If you've only got 5k to spend on transportation, I cannot imagine a worse way to spend it than on a GM orphan from Sweden that's 15 years old with 150k on the clock and limited plus expensive parts availability and dwindling techs who'd even want to work on it. Go find a similar vintage Camry or Accord with 150k miles or even a Ford or a Chevy, whatever. Hell, even an old Jaguar is less of a crapshoot than a Saab. At least you can still get parts.
  • Kwik_Shift Brands that were considered from China include BYD, Dayun, Great Wall Motors, Maxus, Nio, Omoda/Chery, Seres, XPeng, and Zeekr. KG Mobility from South Korea also made the list of candidates.That's a lot of car companies from there ready to head here.
  • Analoggrotto Clean sweep and unanimous victory for the world affluence engine of 22nd century : Hyundai/Kia/Genesis. Toyota and Lexus, for 120 years of history have not been able to capture the zenith superlative status of Hyundai Motor Corporation the most awarded, decorated and revered automotive corporation in the history of historical. Featuring best ever, first ever and greatest ever e-ATPs the Hyundai Genesis Kia lineup is posed to become the envy of every country club, ivy league college and fortune 500 corporation in the world. I've been taking a roadtrip in my loaner Elantra N, visiting colleges from east to west, elite universities of higher learning to inspect their parking lots. WHat did I find? Leagues of Genesis models, outnumbering Lexus 3 to 1. When I interviewed faculty and staff at these places of greater learning, their response was unanimous : they chose HMC for the ATPs.
  • Mikey 2019 Chevy Impala Premier FWD with 20 inch factory Bridgestones. I'm looking at replacing tires at the 65,000 KLM's (40,000 miles ) mark ....It doesn't thrill me .. I'm pricing Michelin Cross Climate 2 tires ouch !! ..Up here in Canuckastan ....Big $$$$$
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