However, recent developments may make it more challenging for the automaker to achieve its goal of saving $3 billion in expenses.
All floors at Ford’s (F) – Get Ford Motor Company Report headquarters in Dearborn, Michigan were likely shaken by the news.
As CEO Jim Farley and his team work to catch up to Tesla (TSLA) – Get Tesla Inc. Report in the lucrative electric vehicle market, this news has come as a complete shock.
As a result of Farley, Tesla is now Ford’s primary competitor. A successful outcome for the CEO in this competition is a top priority. To achieve this goal, he repositioned Ford as a hybrid between a startup and a large corporation. The decision-making procedure must be streamlined and a lot of unnecessary steps eliminated. To sum it up, Ford’s goal is to significantly lessen expenditures.
In February at a Wolfe Research auto conference, Farley said, “We have too many people.” This administration is convinced that our [ICE and BEV] product lines are not generating enough revenue.
He also said that by 2026, the company must have cut at least $3 billion in expenses. The company’s target is to manufacture 2 million electric vehicles by the year 2026. In the United States, it only moved 27,140 EVs that year.
verdict of $1.7 billion
Ford has split its operations for producing ICE vehicles, or gasoline cars, from those for producing EVs, or electric vehicles (BEV).
The company receives a very unfavorable verdict in this setting. Gerald Davidson of Mahaffey Pickens Tucker, LLP, one of the attorneys representing the family, told TheStreet via email that a jury had just ordered Ford to pay $1.7 billion in connection with a fatal accident that killed a couple in Georgia in 2014.
Davidson expressed hope that Ford would take action regarding the millions of super duty trucks produced between 1999 and 2016 but are still on the road.
According to the Atlanta-Journal Constitution, a jury found that Ford sold 5.2 million “Super Duty” trucks with weak roofs that would crush people inside in the event of a rollover. All “Super Duty” vehicles produced between 1999 and 2016 had the problem.
After a trial lasting three weeks, the jury returned its verdict on August 19. They say the monetary penalty is the highest in Georgia’s recorded history. In 2018, a trial on the case ended in a mistrial.
Attempts to reach Ford for comment were met with silence.
Payment in the Amount of $24 Million
No one can say for sure if this enormous sum is the final total. Punitive damages are often reduced by judges and courts of appeal when they deem the amounts to be excessively high.
The 2002 Super Duty F-250 Crew Cab pickup that Melvin, 74, and Voncille Hill, 62, were riding in flipped over and crushed the roof after a tire came loose.
The Hill family claimed that Ford was aware from the beginning that their 2002 model year pickup’s roof was unsafe in the event of a rollover. The family complained that the roof’s poor construction made it difficult to use. They also claimed that Ford knew about the roof crush problem for a long time but did nothing to address it.
As far as we can tell, Ford did not warn F-250 owners about the faulty roof. Thus, the car company ought to pay for the tragedy that took the lives of their loved ones.
It appears that the jury has found in their favor.
The Hill family was awarded $24 million in damages the day before by the jury.
The top 5 Fall getaways in the Northeast
This story has been updated with new information. Fall brings a welcome respite from summer’s heat and humidity as well...
Giant Slide reopened in the US for the first time since going viral
Thousands of people showed up to the Giant Slide in Detroit on the first weekend it reopened since going viral.
This hiker falls to his death at the Grand Canyon
A hiker walking in Grand Canyon National Park fell approximately 200 feet to his death on Friday afternoon, according to...
Ford fixed a problem with the Mustang that caused many crashes
Ford Mustang prototype mystery of 'The Bulge' has finally been solved.
You can buy a 90s Porsche-inspired boat, if you really want to
Yes, this is a yacht made to kind of look like a 993-generation 911 cabriolet.