Ford to spend $11B on its operations to reboot itself, won't say how
Ford said this week during a call with investors that it will pump $11 billion to restructure itself over the next few years as it seeks to remake its business.
The automaker's Chief Financial Officer Bob Shanks called Ford's transition a "profound redesign" but neither he nor Chief Executive Officer Jim Hackett elaborated on how the $11 billion will be allocated.
Under Hackett, who took the reins at Ford last fall, the automaker has announced plans to streamline its business and its car lineup. Ford grabbed headlines earlier this year when it announced plans to phase out sedans and hatchbacks in favor of crossovers and SUVs.
After the call, analysts voiced criticism about Ford's unwillingness to elaborate.
"You're teasing the market with very large numbers. Your own people are going to read the newspaper and say, 'What's going on?'" Adam Jonas, auto analyst for Morgan Stanley, told CNN. "I really do hope you can reconsider the communication strategy. It's not just good enough."
After the call, Ford's plummeted more than 5 percent to under $10, the first time the automaker's stock traded in single digits since October 2012.
The figure likely includes the $4 billion Ford said Tuesday it has committed to its new self-driving car development subsidiary, Ford Autonomous Vehicles. Of that $4 billion, $1 billion was earmarked for its investment in Pittsburgh-based Argo AI, an artificial intelligence and robotics development firm focused on self-driving car technology.
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