Ford plans to achieve thousand-fold revenue growth through software services

Ford Motor Company’s future strategy will focus on in-vehicle software services, with revenue expected to grow by 1,000% in the next few years. To achieve this goal, Ford announced the hiring of former Apple Vice President of Services Peter Stern, who will be responsible for managing the newly established technology department and promoting the development of Ford's hands-free driving system BlueCruise and other in-car services for car owners.

Ford CEO Jim Farley said his goal is to create a continuous revenue stream through software services to balance the cyclical fluctuations in the auto business. Currently, Ford has 500,000 software users in the commercial fleet business

Farley said on the conference call: "Our current revenue has exceeded hundreds of millions of dollars, and our profit margins are very good. Based on our Observing growth trends, we expect revenue in this field to grow at least 10 times in the next few years."

He further explained that the gross profit margin for sales of software services such as vehicle speed control exceeds 50%, and Ford's sales in the first half of this year The EBIT margin is only 8.3%

Ford plans to launch a new electric architecture in 2025 and 2026, including fuel vehicles and electric models, including the best-selling F-150 pickup truck. This will help Ford offer more subscription services, especially in the safety area. Farley stressed that this will be one of Ford's fastest-growing areas, with higher profit margins than traditional auto businesses. Peter Stern is the latest former Apple to join the auto industry. The executive joined the Ford team and worked closely with Doug Field. Field was hired by Farley in 2021 to run Ford's Model e division, which is dedicated to developing new vehicle technologies, including electric vehicles, hands-free driving features and software services

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