Everyone knows about the popularity of Ford in the U.S. As one of the biggest car producers, the company rakes in billions of dollars every year, and has become a household name that everyone recognizes, regardless of whether it’s in the U.S. or overseas. However, it looks like it’s going to be a different kind of year for them this time around.
Despite the usual success that Ford has, things are looking a bit grim as the company has lowered its expected profits for 2018 significantly. This decrease in predicted profits comes after the calculations made in the second quarter of the year. During this time, the company’s net income fell at an alarming rate of 48% to 1.1 billion dollars. Ford financial officials claim that this is due to troubles with structuring overseas in foreign markets. They also cite a particularly devastating fire in one of the supplier plants in China that lasted over a week, and negatively affected the production of the F-Series pickups back in the U.S. greatly.
People have turned to the CEO of Ford, Jim Hackett, to see if he has any ideas as to how the company has strategized to make up for the major loss in revenue, and how he, as a CEO, plans to bounce back from this unexpected shortage. He responded with an affirmative action to a plan for restructuring Ford’s decreasing global market over the next three to five years. If all goes well, this plan should stabilize the market overseas, and slowly improve the loss of sales in foreign countries. Aside from the jobs and livelihood of Ford’s workers at stake, this plan adds up to a whopping 11 billion dollars, so hopefully it’s worth it and results in a positive shift for the car industry giant.
Unfortunately, the big price tag comes with little explanation as to exactly how Hackett plans to distribute and use this money to remedy the situation. People are frustrated, to say the least, with the lack of clarity given on this 11 billion dollar restructuring plan, but Hackett says the company is being “mindful of all of our stakeholders” and that they “can only share information publicly once decisions are made.” With a vague answer like that, we can only hope that Ford is able to bring itself back up to their usual revenue, and that they don’t plan on exiting any global markets at this point.