Ford Is In Survival Mode: Will Its $11 Billion Turnaround Plan Help It Avoid Demise?

In 2008, Ford (F) fought to avoid bankruptcy and a government bailout as it amassed losses of $14.8 billion. Now, the struggling automaker is fighting back again as it looks to turn its business around and get back to its former glory days.

“Everyone at Ford knows the situation we’re in,” Jim Farley, who will move to the role of COO at Ford on March 1, said Wednesday at a Wolfe Research conference in New York (via Bloomberg). “I can see it on the faces of my colleagues and it takes me back to about 10 years ago. I’ve seen the look before.”

With dismal earnings reports hanging over the company and a botched launch of the new Explorer SUV, Ford saw its share price dip to its lowest level in more than a decade on Tuesday, the news outlet reported. But Farley maintains this is when Ford is at its best.

“When I see Ford at its best was in ’08, coronavirus, Thai floods, earthquake in Japan,” Farley said. “When there was a threat, the team comes together, decisions get made quickly at the right level. It’s very natural.”

Ford CEO Jim Hackett has announced an $11 billion turnaround plan for the company, which Farley said he is focused on. He is reportedly looking to improve the company’s financial performance with new vehicle launches such as the Bronco 4x4 SUV, all-electric Mustang Mach-E, and new electric version of the F-150 as well as a redesigned conventional model of the pickup truck.

“We need to immediately fix the reliability of our cost performance and especially our launches,” Farley said. “We’re launching very, very expensive products. So the first one is to really fix our execution capability around launches, warranty costs, delivery and revenue. I would say that’s No. 1.”

Ford announced that Farley would move into the COO role earlier in February, replacing Joe Hinrichs, who has retired.

Shares of Ford stock were down 3.12% at 10:15 a.m. EST on Thursday.