Ford Motor Company (NYSE:F) set out a clear plan to increase its sales from the current 6.3 million to 9.4 million by 2020. At the same time, the company wants to improve its operating margin and profitability. The U.S. automaker, which is the fourth largest in the industry, targets a sales increase of between 45% – 55% and an operating margin of up to 8%.
The company has spelt out a few actions to take in order to reach the set targets and to be able to mitigate the effects of market competition. These actions include delivering full family vehicles that exceed customer expectations and delivered based on Ford Motor Company (NYSE:F) brand four pillars of quality, green, safe, and smart.
“Our long-term plan underscores the commitment we have to our One Ford plan, while accelerating our pace of progress, delivering product excellence and driving innovation in all areas of our business,” said Mark Fields, Ford’s president and CEO. “We remain completely focused on offering customers the freshest lineup of world-class vehicles to meet their needs.”
Ford Motor Company (NYSE:F) plans to expand its Silicon Valley presence by expanding Palo Alto Research and Innovation Center. The center is to bring in different talents from different industries so as to present holistic machines. The company will continue to invest heavily on automation technology and in-car connectivity to provide users with even better experiences.
The 2015 F-150 makes Ford Motor Company (NYSE:F) the first automaker to use high grade military aluminum alloys to make a mass market vehicle. The company intends to make more high power vehicles to attract more customers to its fold.
The company isn’t doing badly in the market and would like to use its products to boost its growth and reach out to emerging markets. Ford Motor Company (NYSE:F) also has to do more to avoid being caught up in recalls as it happened when the company had to recall 850,000 due to a software fault.
This is however shy of the more than 15 million units that General Motors has called so far.
This article has been written by Victor Ochieng.