Ford to Spend $11B to Remake Business
July 30, 2018—Ford recently announced that it is planning significant changes to its core business in the coming years, and that it’ll spend $11 billion to make that happen. According to CNN Money, the automaker didn’t reveal many details, but the changes likely include ramped-up development of self-driving cars, plus investing in ride-sharing programs.
Ford noted that all the pending changes would cost roughly $11 billion over the next 3-5 years.
“The team is making the hard decisions to raise the returns of underperforming assets,” said chief financial officer Bob Shanks. “We will disposition the rest. This type of profound redesign will take time, and we will communicate as decisions are made.”
Last week, Ford announced that it was forming a separate unit within the company to focus on autonomous driving vehicles. It had previously announced it’ll stop selling traditional sedans in North America and it is exploring a possible strategic alliance with Volkswagen.