Ford's new CEO James Hackett presented his plan for the automaker to analysts on Tuesday, which will include cost cutting, a significant shift to electric vehicles, and continued investment in self-driving car technology and transportation services.

Why it matters: Hackett's appointment was said to be a move by the company's board to help Ford catch up in the autonomous driving race, which includes rival automakers like General Motors and Tesla, along with tech companies like Alphabet, Uber, and Lyft.

The plan:

• Cut costs by $14 billion over the next five years.
• Shift toward electric cars (one-third of planned investment in gas and diesel engines will be reallocated to electric or hybrid cars).
• Reallocate $7 billion in capital from developing passenger cars to trucks and SUVs.
• Shift to connected vehicles that have an Internet connection (all new U.S. cars by 2019, 90% of new Ford cars globally by 2020).
• Continue to invest in self-driving car technology and transportation services.