Ford has its eye on the future. Despite already stating the need to cut costs and delay development of some of its cars, the American automaker sees the introduction of new, must-buy models as the answer for the steep decline in its car sales.

After six weeks of discussing viable measures to regain profitability, Ford execs realized that it is not enough to cut back on costs and simply bank on the old reliable models to keep sales afloat. “We’re only going to be in business if we create products that people really do want and value,” said Ford president and CEO Allan Mulally.

Ford is already in cost-cutting mode. The financial flexibility gained from cutting salary, restructuring, and reduction in advertising and executive bonuses will be dedicated to this new mindset.

This is a good mentality for Ford, simply because relying on older models is tantamount to mediocrity for an automaker. The cars are at the heart of the business, and that’s where car companies should focus on. Cost-cutting efforts would be such a waste if product development stagnates.

Source: Motor Authority