Ford set to see over $1bn improvement in operating earnings
The US-based automotive manufacturing giant, Ford, is expected to experience more than a $1bn improvement in operating earnings following its shift from less profitable cars to trucks at its Michigan production plant, according to Reuters.
Ford’s Michigan Assembly Plant in Wayne, Michigan, has transitioned from C-Max hybrids and Focus compact cars to Ranger mid-sized pickup trucks and Bronco SUVs.
At a Bank of America Merrill Lynch conference in New York, Ford’s Jim Baumbick, vice president of enterprise product line management, commented: “The absolute change in profitability is over $1 billion EBIT and we expect over the long, normal cycle, that to continue to improve. That’s just an example of other choices that we’re making in the portfolio that are going to unlock additional value.”
The company has begun to restructure its operations worldwide in order to accelerate profitability and increase product development.
The Bronco is set to launch next year while the Ranger was unveiled in January.