Ford executives target changes in cost and quality

Executives at Ford (NYSE:) revealed Thursday that the Detroit automaker is intensely focused on cost reduction strategies spanning commodities, labor, warranties, and the design of its upcoming third-generation electric vehicles.

“We’re focused on making meaningful changes in cost and quality” over the next year or two, Said CFO John Lawler.

Ford previously estimated the expense of a fresh UAW labor agreement at $8.8 billion and expressed its intention to counterbalance this by implementing cost-saving measures in other areas.

Lawler highlighted Ford’s objective to streamline the intricacy of forthcoming vehicle designs and cutting the number of labor hours necessary for constructing these vehicles.

“We see opportunities in automation,” Lawler added.

Lawler acknowledged that the automaker still has “a lot of work to do” to cut warranty expenses. However, he mentioned that the expenses related to commodities for electric vehicles are consistently decreasing.

He also emphasized that increased production volumes, utilization of smaller batteries, and the implementation of “optimized designs” will play key roles in lowering the expenses associated with its second-generation electric vehicles, expected to launch in the middle of the decade.

Looking ahead towards 2030, Lawler anticipates that Ford’s third-generation EVs will represent a notable advancement, marking a significant leap in the ongoing effort to reduce costs even further.

Shares of F are down 3.45% in afternoon trading on Thursday.