Ford has announced plans to simplify its product lineup starting in the 2024 model year, which means they will likely produce fewer variations of the same model.
The announcement was made by Ford’s product development chief
Jim Baumbick, at a conference hosted by Bank of America.
According to Reuters, Ford plans to increase the number of variations for certain model lines, like the Bronco SUV. This is because those models offer higher profit margins of 30% or more compared to the base model.
According to Ford CEO Jim Farley, the company’s vehicle models and underlying designs are overly complicated and expensive.
As a result, Ford is working to reduce operating costs by several billion dollars, as profits in 2022 did not meet the expectations of investors.
Baumbick said, “On Bronco, we are never going to let our foot off the pedal.”
Ford is also “rushing to add capacity” to build more Maverick compact pickup trucks, he said.
Ford Motor Company is a multinational automaker headquartered in Dearborn, Michigan, United States.
Today, Ford is a leader in the development of electric vehicles and autonomous driving technologies, and it remains one of the largest and most recognizable car companies in the world.