Ford’s new chief executive Jim Hackett promised to cut $14bn in costs and divert investment from traditional cars to speed up electric and self-driving vehicle development. In a long-awaited strategy update to analysts in New York, Mr Hackett battled market perceptions that the company has been slow to prepare for a future dominated by shared, environmentally-friendly autonomous cars. He said Ford would cut capital expenditure on internal combustion engines by a third and redeploy that capital into electrification, on top of $4.5bn the company already planned to spend on electric cars. The Detroit automaker will also reallocate $7bn of capital from cars to more profitable sport utility vehicles and trucks, a move which is likely to lead to the elimination of some car models. Ford did not identify any nameplates that would disappear. Some jobs are likely to be lost and some factories could close, according to people close to the company. The Detroit automaker said it will cut automotive cost growth by 50 per cent by 2022. That includes cutting the costs of materials by $10bn and saving $4bn compared to its previous plans by increasing the use of common parts across all vehicles. The new Ford CEO, who was previously head of the futuristic Ford Smart Mobility division, replaced Mark Fields unexpectedly in May amid sliding profits and share price performance, and concerns that Ford lags behind rivals in the race to develop electric and autonomous vehicles. Ford reaffirmed its 2017 full-year financial guidance, which called for a drop in profits, and said it would provide its 2018 outlook in January. Mr Hackett laid out his vision for how the 114-year-old automaker can make enough money from the brutally competitive business of selling cars to invest the sums needed to compete in a world increasingly turning against internal combustion engines.