Ford is no longer forecasting whether profit will jump in 2018 and will share its forecast for next year in January. According to Bob Shanks, CFO Ford the 8 % goal attainment could take up to 2020 or later.
Other automakers have warned that shifting to all-electric vehicles could undercut profit margins.
Ford hinted in recent days that it plans to offer more electric models in the coming years, and Hackett's plan calls for reducing internal combustion engine capital expenditures by one-third, and redeploying that capital into electric powertrains. Hackett took over from former CEO Mark Fields in May.
The industry outsider on Tuesday afternoon will lay out for investors his strategic plan for the 114-year-old automaker.
Ford shares rose 0.5 percent to $12.40 as of 4:22 p.m.in NY, after the close of regular trading. Earlier this year, Ford made a decision to move production of its next-generation Focus sedan from North America to China, saving money.
He also highlighted the importance of having more tech-savvy cars, with Ford expecting 90% of its vehicles sold worldwide by 2020 to be "built with connectivity".
Ford is playing catch up in some areas. Ford says 90 percent of its vehicles in the USA will come equipped with a mobile broadband connection by 2020.
"The cost cuts include $10 billion in "incremental" reductions in material costs and $4 billion in engineering cuts as the company shoots to cut vehicle development time by 20%", reports Nathan Bomey for USA Today.
Outlining a campaign to increase revenue while controlling expenses, Hackett said Ford had to become a more disciplined company. The company plans to introduce 13 new electric vehicles around the world over the next five years, including an F-150 hybrid, Mustang hybrid, a hybrid autonomous vehicle, hybrid police sedan and a fully electric small SUV. Dubbed Team Edison, the group will provide overall direction on electric vehicle strategy, leveraging existing resources in the effort. Ford said the number of options would also be streamlined, focusing on what customers value most.
Demands on Australia's You Yangs and Broadmeadows-based research and development arm - one of the remaining functions here after last October's manufacturing shutdown - could also be impacted, with the auto maker saying it wanted to crunch new vehicle development timelines by an extra 20 percent. "We try to manage everything, all aspects of the business under "One Ford", and that hobbled the company's ability to move quickly, costing market share.