Despite some momentum coming with the Chinese launch of the Lincoln brand, Ford continues to struggle. Sales further declined during the first quarter, though the automaker was able to reduce its losses in the market to $28 million from $150 million a year ago. But even there, a favorable shift in exchange rates played as important a role as ongoing cost-cutting efforts.Cost-cutting is clearly the name of the game for Ford, especially in two other troubled markets.
Ford doesn't appear to be ruling out any option – not if one considers the moves it has been making on the alliance front. While the Volkswagen talks have garnered most of the attention, Ford has also been expanding its ties to one of India's largest homegrown auto companies, Mahindra & Mahindra. The companies are partnering to develop a midsize SUV for emerging markets and a small electric vehicle.
Even in the home market, there is plenty to do, Joe Hinrichs, who this month was named president of Ford's automotive operations said. The decision to focus on the light truck market is one of the key steps, but Ford has to press for greater efficiencies, Hinrichs stressed. One of the ways the automaker hopes to do that, he explained is "by flattening the organization ... removing layers of bureaucracy.