The automaker will also speed up the development of vehicles by around 20 percent via new tools such as virtual reality and big data. Nor does Ford have a high-volume brand of affordable entry cars for China - such as the Baojun cars sold by rival General Motors Co and its China partner SAIC Motor Corp. That should give Ford "the time, resources and flexibility to evolve", he said.
Ford hasn't shared much in the way of details yet.
His vision of Ford was of a more nimble company that was faster to act and more responsive to the changes that threaten to upend the industry than it had been to date. But here's what we know. In the meantime, Ford Motors also announced the creation of "Team Edison", meant to accelerate the company's EV development and partnership work. The new team also has a new boss - Ted Cannis, who took the new role of global director of electrification. The formation of Team Edison is likely the outcome of this review, although Ford has not confirmed that to be the case.
All external indicators suggest demand for electric vehicles will continue to accelerate.
Reiterating its long-term goal of an 8 percent automotive operating margin, Ford said it "will embrace the profound technological changes and new competition buffeting the industry". In India, Ford and local automaker Mahindra and Mahindra said last month they will launch a strategic alliance in a market shifting to vehicle electrification. Ford recently announced a partnership with Lyft to deploy self-driving cars, and it's collaborating with Domino's Pizza to research how customers feel about robocar pizza deliveries.
Ford has previously said that it has a long-range electric vehicle in development, a compact crossover SUV with 300 miles of range that will go into production in MI by 2020.
According to retired Ford Vice President of Powertrain Engineering Bob Fascetti, Ford and other automakers could bring electric motor design and production in-house "to an extent", minimizing the extent to which automakers rely upon external suppliers for the electric motors that drive battery-electric and hybrid vehicles.
Hackett, former CEO of office furniture maker Steelcase Inc, took the top post at Ford in May after his predecessor Mark Fields was pushed out.
The majority of those savings will disappoint up on Ford's bottom line until 2019 and 2020, Hackett and other Ford executives stated, showing the market's long product engineering lead times.
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