Ford chief, Jim Hackett reveals turnaround plan for the automaker

Ford's new chief has revealed plans, which he says will make the company "fit" to compete in a changing industry.

According to Hackett, Ford will shift resources from traditional cars to SUVs and trucks, even as the company invests in electric power and tech services.

He identified the goals following a 100-day review.

Hackett came to head the company in May, replacing Mark Fields, whose tenure lasted only three years.

During the period Ford had seen some of the most profitable years in its history, but the share price drifted lower.

Investors are concerned the company has been slow to move in markets such as China and in sectors such as automated cars as it struggles against competitors, including new ones emerging from Silicon Valley.

"The industry is staring at the tech companies coming at it. That's where I feel I bring some experience to Ford, where I can help," said Hackett, who joined Ford last year to lead its autonomous car division before taking the top job.

"Fitness is the way you protect your broadsides from disruption," he told an investor meeting in New York yesterday.

Under the plan, Ford will cut costs by $14 billion in five years targeting $4 billion in product engineering and $10 billion in material costs. Ford aims to cut engineering costs from planned levels by increasing the use of common parts across its full line of vehicles, reducing the number of possible option combinations customers can order. It also plans for  building fewer prototypes.

The plan also envisages taking $7-billion away from cars and allocating it to areas which will deliver more profits: trucks and SUVs, including the Ranger and EcoSport in North America and the all-new Bronco.

The efforts in this direction will not be US centric, the trucks-SUVs vision will be implemented globally.