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Ford Motor Company - Strategic Shift

Ford Motor Company is implementing a strategic shift to focus on electrification, advanced mobility solutions, and sustainability to maintain competitiveness in the automotive industry. Key objectives include achieving a 40% EV share by 2030, investing in connected vehicle technology, and attaining carbon neutrality by 2050. The strategy addresses current challenges such as growing EV competition and supply chain disruptions while aiming for long-term growth and market leadership.

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26 views4 pages

Ford Motor Company - Strategic Shift

Ford Motor Company is implementing a strategic shift to focus on electrification, advanced mobility solutions, and sustainability to maintain competitiveness in the automotive industry. Key objectives include achieving a 40% EV share by 2030, investing in connected vehicle technology, and attaining carbon neutrality by 2050. The strategy addresses current challenges such as growing EV competition and supply chain disruptions while aiming for long-term growth and market leadership.

Uploaded by

Fidel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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STRATEGY SHIFT PROJECT FOR FORD MOTOR COMPANY

Executive Summary

To maintain its competitive edge in the rapidly evolving automotive industry, Ford Motor
Company is implementing a strategic shift focusing on electrification, advanced mobility
solutions, and sustainability. This strategy will enable Ford to lead the transition to a carbon-
neutral future while ensuring profitability and market relevance.

Objectives of the Strategy Shift

1. ACCELERATE ELECTRIFICATION: Achieve a 40% EV (Electric Vehicle)


share in global sales by 2030.
2. INVEST IN MOBILITY SOLUTIONS: Expand Ford’s offerings in connected
and autonomous vehicle technology.
3. ENHANCE SUSTAINABILITY GOALS: Achieve carbon neutrality across
operations by 2050.
4. STRENGTHEN DIGITAL SALES CHANNELS: Boost direct-to-consumer sales
through an enhanced online platform.

Current Challenges

1. GROWING EV COMPETITION: Increasing competition from EV-focused


companies like Tesla and Rivian.
2. SUPPLY CHAIN DISRUPTIONS: Semiconductor shortages and raw material
cost increases.
3. CARBON EMISSIONS REGULATIONS: Stricter global regulations on
emissions necessitate swift action.
4. CHANGING CONSUMER PREFERENCES: Increased demand for eco-friendly
and tech-integrated vehicles.

Proposed Strategy Shift

1. ELECTRIFICATION DRIVE

OBJECTIVE: Transition Ford’s vehicle portfolio to meet the growing demand for EVs and
reduce carbon emissions.

INITIATIVES:
 Launch a comprehensive lineup of electric vehicles, including electric
versions of best-selling models like the Ford F-150 Lightning and Mustang
Mach-E.
 Establish new EV manufacturing hubs with a focus on sustainability.
 Invest $22 billion in EV development and battery technology by 2025.
 Partner with battery suppliers to secure a steady supply chain for lithium-ion
batteries.

KPIS:

 40% EV sales by 2030.


 Launch at least five new EV models by 2026.

2. ADVANCED MOBILITY SOLUTIONS

OBJECTIVE: Develop and deploy connected and autonomous vehicle technologies to enhance
customer experiences and reduce traffic congestion.

INITIATIVES:

 Invest $7 billion in autonomous vehicle research and development.


 Roll out Ford’s BlueCruise hands-free driving technology across major
markets.
 Collaborate with smart city initiatives to integrate Ford vehicles into urban
mobility ecosystems.
 Expand Ford Pro’s connected fleet management services for commercial
customers.

KPIS:

 Achieve 25% of revenue from connected and autonomous vehicle solutions


by 2030.
 Deploy autonomous delivery services in 10 major cities by 2025.

3. SUSTAINABILITY AND CARBON NEUTRALITY

OBJECTIVE: Lead the automotive industry in sustainability by reducing carbon emissions and
adopting eco-friendly practices.

INITIATIVES:

 Transition to 100% renewable energy across all manufacturing plants by


2035.
 Implement circular economy practices by increasing the use of recycled
materials in vehicle production.
 Partner with governments and NGOs to support reforestation projects and
carbon offset programs.
 Introduce initiatives to recycle EV batteries and reduce electronic waste.

KPIS:

 Achieve carbon neutrality by 2050.


 Reduce operational carbon emissions by 50% by 2030.

4. DIGITAL SALES TRANSFORMATION

OBJECTIVE: Strengthen Ford’s direct-to-consumer sales channels to improve customer


convenience and reduce dependence on dealerships.

INITIATIVES:

 Launch a comprehensive online platform for vehicle customization, financing,


and purchasing.
 Integrate augmented reality (AR) features to allow customers to visualize
their chosen vehicle configurations.
 Expand Ford’s subscription-based ownership models, such as FordPass.
 Leverage data analytics to personalize marketing and post-sale services.

KPIS:

 Achieve 30% of global sales through digital channels by 2027.


 Increase customer satisfaction scores related to the online purchasing
experience by 20% within two years.

Implementation Timeline

PHASE ACTIVITIES TIMELINE


EV production ramp-up and pilot Months 1-
PHASE 1 launches 12
Deployment of BlueCruise and mobility Months 6-
PHASE 2 solutions 18
Renewable energy and circular Months 12-
PHASE 3 economy projects 36
Months 6-
PHASE 4 Digital sales platform rollout 24

Financial Projections
PROJECTED INCREASE PROJECTED INCREASE
CATEGORY
(YEAR 1) (YEAR 2)
EV Revenue +$2 billion +$4 billion
Mobility Solutions
+$1 billion +$2.5 billion
Revenue
Operational Cost
-$500 million -$1 billion
Savings

Risks and Mitigation Strategies

RISK: Supply chain disruptions affecting EV production.


MITIGATION: Diversify supplier base and stockpile critical materials.

RISK: Delays in autonomous vehicle deployment.


MITIGATION: Partner with tech firms to accelerate development and testing.

RISK: Resistance from traditional dealership networks to digital sales.


MITIGATION: Collaborate with dealerships to create hybrid sales models.

Conclusion

The proposed strategy shift will position Ford Motor Company as a global leader in the future of
mobility. By focusing on electrification, advanced technology, sustainability, and digital
transformation, Ford can secure long-term growth and market leadership in a rapidly changing
automotive landscape.

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