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Transcript

00:00:01
>> Ford plans to slash about 10% of its workforce in North America and Asia by October 1st, the boldest move yet by CEO, Mark Fields. And it comes as shareholders are turning up the heat on the Ford CEO to address the car company's sliding stock. Reuters transportation editor, Joe White.
00:00:20
>> Well, I think the problem from Mark Fields as CEO of Ford is that the market in the United States is turning down. I mean, the sales have decelerated, profitability is threatened, and so he's gotta figure out a way to raise Ford's profitability at a time when Wall Street has basically given up on Ford.
00:00:39
I mean the stock is down close to 40% since he took over. So he's got a very skeptical investor community who just don't believe that Ford has room to grow.>> Ford is also trying to invest in a digital future, promising a self-driving vehicle by 2021 and pouring cash into a number of transportation services.
00:00:59
But even such investments had not been enough to wow investors.>> It's pretty clear that the investor community for the most part used Ford as what it always has been which is the cyclical industrial company. They're not giving Ford much credit at all for the potential of these transportation as a service businesses, having an autonomous taxi fleet, or an autonomous van fleet, that would earn money by the mile.
00:01:27
So that's the big challenge from Mark Fields and the people around him. It's A, having a strategy that actually brings and shows that those services can be profitable in the here and now. And, B, communicating to investors that Ford is not the same company that it was, forget about 1915, the same company that it was in 2015.
00:01:50
And that has been pretty difficult.>> Tuesday's news and job cuts could also put the US automaker on a collision course with President Donald Trump, who made boosting auto jobs a top priority. Under pressure from Trump, Ford earlier this year scrapped plans to build a new $1.6 billion car factory in Mexico, where it currently assembles its Ford Fusion and Lincoln models.