In June, Ford undertook a comprehensive restructuring in
Europe, which involved the creation of three new business groups, introduction
of three new vehicle nameplates, factory closures and job cuts. The company
created three new groups for commercial vehicles, passenger vehicles and
imports. It also decided to close some of its factories in the UK, France and
Russia.
Ford also entered into a number of partnerships and investments during the year to drive growth. In April, the company made a $500 million equity investment in Rivian and announced a partnership to develop a new battery electric vehicle for Ford using Rivian’s skateboard platform.
Also read: Ford Q3 2019 Earnings Report
One of the most noteworthy partnerships that Ford announced during
the year was with Volkswagen. Both companies agreed to work together to develop
commercial vans and medium-sized pickups for global markets and later expanded this
partnership to include electric and autonomous vehicles. Volkswagen also agreed
to invest in the autonomous vehicle technology platform company Argo AI.
In September, Ford announced a partnership with Changan
Automobile aimed at developing products and technologies for the Chinese
market. A month later, Ford announced a collaboration with Mahindra &
Mahindra Limited to create a joint venture that will develop and distribute
Ford’s vehicles in India and the vehicles of both companies in high-growth
emerging markets worldwide.
It will be worth watching how these investments and strategies pan out for the company over the coming years. Shares of Ford have gained 23% thus far this year.