Ford Motor Co. has identified measures to secure 8 percent margins on its next-generation EVs due at mid-decade but could take years to close an overall cost disadvantage of up to $8 billion against competitors, executives said on Wednesday.
The automaker can save up to $2.5 billion this year through better management of production schedules and a drop in commodity prices, CFO John Lawler said at an auto conference.
The automaker posted dismal quarterly results earlier this month and blamed chip shortages, supply chain disruptions and production "instabilities" for adding to its costs.
Lawler has said Ford faces $5 billion in higher costs this year and that the company will be "very aggressive" in reducing expenses in its manufacturing, supply chain and distribution operations.
Longer term, the company aims to reduce dealer inventories and drive more transactions online, among other measures, according to CEO Jim Farley.
Ford shares were down 2 percent in afternoon trading.