Categories LATEST

Ford Motor Company (F): A look at major restructuring and growth activities

The automotive industry has been witnessing several changes and in those terms, 2019 was a noteworthy year for many major players. Ford Motor Company (NYSE: F) was one of them and the company undertook a couple of restructuring activities and entered into strategic partnerships during the year in order to drive growth.

As part of its restructuring activities, Ford exited its commercial heavy truck business in South America at the beginning of this year. The company decided to stop production at its Sao Bernardo do Campo plant in Brazil ending the sales of the Cargo line-up, F-4000, F-350 and the Fiesta small car.

ford image
Photo by Sven D on Unsplash

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.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Earnings calendar for the week of January 25

Leading stock indices continued the recent rally this week, with S&P 500 and Dow Jones Industrial Average setting new records helped mainly by the tech sector. Also, the overall sentiment

COVID-related medical costs may weigh on UnitedHealth’s performance this year

The health insurance sector has been facing multiple challenges from the virus crisis, but market-leading healthcare firm UnitedHealth Group (NYSE: UNH) maintained stable financial performance as customers of its core

United Airlines (UAL): International travel expected to make quicker recovery than domestic

United Airlines Holdings Inc. (NYSE: UAL) had a tough time in 2020 and its CFO literally bid “good riddance” to the year on its quarterly conference call. The company reported

Comments

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top