Ford Motor Co. (NYSE: F) CEO Alan Mulally said on Monday that his company may reduce its line-up to as few as 20 models.
When being asked about the Dearborn, MI-based company’s future line-up of models while addressing the Confederation of British Industry in London Monday, he said, “There will be less than 30, on our way to 20 to 25.” He explained them move saying, “Fewer brands means you can put more focus into improving the quality of engineering.”
When Mulally took over as CEO of Ford Motor Co. (NYSE: F) in 2006, the company had a total of 97 models. During Mulally’s tenure, Ford Motor Co. (NYSE: F) sold a number of brands including Volvo, Jaguar, Land Rover and Aston Martin. Ford also announced earlier in the year that it will be discontinuing its Mercury-line to put more resources into its Lincoln brand.
Mulally added that Ford has also simplified the components for each product and there are now only about 10 variants of the Fiesta and 65% of the parts on the vehicle are standard. “It helps all of our distribution, Ford store owners, suppliers, employees and consumers to know exactly what they’re getting,” Mulally said.
Ford Motor Company (Ford) is a producer of cars and trucks. Ford and its subsidiaries also engage in other businesses, including financing vehicles. It operates under two segments: Automotive and Financial Services. The Automotive segment includes the operations of Ford North America, Ford South America, Ford Europe, Ford Asia Pacific Africa and Volvo. The Financial services include the operations of Ford Motor Credit Company and Other Financial Services. In August 2010, the Company completed the sale of its Swedish Volvo Car unit and related assets to China’s Zhejiang Geely Holding Group Co.
Shares of Ford Motor Co. (NYSE: F) traded down 0.64% during mid-day trading on Monday.
