Ford is aiming to reduce costs and boost margins by requesting suppliers for cheaper parts to aid its struggling EV and software division. CEO Jim Farley adjusted the EV unit's expenditure from $10 billion to $8-9 billion to enhance profitability.
Ford's Chief Supply Chain Officer, Liz Door, emphasized the necessity to deliver affordable EV products by achieving material cost efficiency. Ford's initiative involves engaging suppliers to lower costs significantly, signaling a pivotal cost-cutting strategy to survive and compete effectively.
In response to its $1.3 billion operating loss in Q1 for the EV division, Ford is refocusing on cost reduction by reducing battery orders and hinting at shifting focus to hybrid-electric vehicles in Europe. This move aligns with consumer preference trends towards hybrids over pure EVs.
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