Ford seen struggling to return to +10% margins Sep. 1, 2020 8:12 AM ET|About: Ford Motor Company (F)|By: Clark Schultz, SA News Editor UBS weighs in on reports that Ford (NYSE:F) plans to cut more jobs in North America at the salaried level. "The announced headcount reductions are aimed at improving the automaker’s efficiency. Ford cut 7,000 salaried positions worldwide last year in the first round of the global restructuring. Those reductions were expected to save the OEM ~$600m/year; with a global workforce of 190,000 for FY2019. Depending on prevailing market conditions, we note the possibility further adjustments may be considered in NA operations." UBS expect the new normal US SAAR in 2021 to be more than 10% below the 2019 level. While Ford is seen delivering an improved product mix and higher net pricing next year on the launch of the new F-150 truck generation, increased competition and the arrival of Tesla's Cybertruck are called potential turning points in the segment. "F's NA margins were already well below the envisaged 10% level before the pandemic, and we don’t see the company returning to this level any time soon. We continue to prefer GM over F on better execution, a more aggressive EV strategy and a better performing non-US business."