The automaker’s new chief executive Mark Fields showed impressive growth targets for 2020, but as this year and 2015’s grim financial targets hit investors and analysts, they also expressed doubts about the growth strategy.
Succeeding since July 1 the very popular former CEO Alan Mulally, Fields didn’t start his term very well, massively cutting the profit expectations on recall costs in North America and losses in regions such as Russia and South America.
“Mark probably wanted to put his stamp on things early,” said Matt DeLorenzo, managing editor of Kelley Blue Book. “He needs to appear to be a bold and decisive leader, but he has a lot on his plate.”
“Ford knows it needs a luxury brand to bolster margins and reduce its over-reliance on the F-series for profitability,” comments Joe Langley, an analyst at research firm IHS Automotive. “But it faces a multi-decade, multi-billion-dollar effort to build Lincoln into a credible luxury brand in the U.S. and China.”
The strategy could be successful if the regions across the globe become more stable, but adamant to the plan’s survival are the all-new generation of the F-150 pickup truck and the reestablishment of the Lincoln brand in the US and China. The latter country, the world’s largest auto market, has been an incredible success story for the US automaker and the company hopes the story would go on with Lincoln’s introduction there.