The Detroit automaker, however, will take years to close the cost disadvantage of $7 billion to $8 billion it has with its competitors, said Lawler, who was speaking at the Wolfe Global Auto conference.

The automaker posted dismal quarterly results earlier this month and blamed chip shortages, supply chain disruptions and production "instabilities" for adding to its costs.

Lawler has said Ford faces $5 billion in higher costs this year and that the company will be "very aggressive" in reducing expenses in its manufacturing and supply chain operations.