Ford Statement on Business Transformation - Ford Inside News Community
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post #1 of 30 (permalink) Old 11-27-2018, 07:31 AM Thread Starter
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Ford Statement on Business Transformation

Editor's Note: As you may have seen, today General Motors made an announcement regarding the future of their company. This sparked interest from the media and other shareholders about the progress of our own transformation over the last 18 months. In order to be helpful, the communications team put together an overview of the transformation that we have been undergoing and posted it to the Ford media site. You also can find that update below.

Ford has been working intensively and taking action to transform our business over the past 18 months. As we redesign and restructure our global business, we will build on our areas of strength; smartly and strategically address underperforming products and regions; and invest in the future by designing smart vehicles for a smart world.

Key actions include:

-Updated footprint: We announced in July that restructuring activities could have potential EBIT charges of $11 billion, with cash-related effects of $7 billion, over the next five years. These actions will come largely outside of North America.

-Transforming Product Development: We announced nine months ago that we are shifting to five flexible architectures for our vehicles -- driving a 20 percent savings in time from sketch to showroom and yielding significant efficiencies. As part of this, we've also identified ways to manage up to 70 percent of each vehicle's value through increased component sharing. We also formed a new Enterprise Product Line Management group, which establishes 10 cross-functional teams that will manage distinct product lines as end-to-end businesses and leverage Ford’s human-centered design, advanced product marketing and user experience teams to create breakthrough products and customer experiences.

-Shifting Vehicle Portfolio: We've already taken actions to shift our vehicle portfolio to better meet our customers' needs going forward and strengthen our business, improving returns. This includes moving approximately 90 percent of our North American vehicle lineup volume to SUVs, pickup trucks and commercial vehicles between 2018 and by the end of 2020. The company is phasing out slow-selling traditional sedans to free up capital for new entries in growing segments.

-Strong investments in Autonomous and Electrified Vehicles: Ford’s fitness actions are freeing up capital to invest in emerging businesses. Ford expects to invest $4 billion in its AV efforts through 2023, including its $1 billion investment in Argo AI. In addition, Ford is investing $11 billion in electrification from 2015 to 2022 to deliver a total of 40 vehicles globally. The company remains on track to deliver a full battery electric performance SUV that offers at least a 300-mile range in 2020.

-Capacity Utilization: Ford has the best manufacturing capacity utilization in North America based on the aggressive restructuring we completed a decade ago, including our use of industry-leading three-crew operating patterns and our continued discipline around balancing capacity with consumer demand, as we have for years.
Organization Redesign: We are in the early stages of reorganizing our global salaried workforce to support the company’s strategic objectives, create a more dynamic and empowering work environment and become more fit as a business. The reorganization will result in headcount reduction over time, and this will vary based on team and location.

-Strategic Alliances: We are in talks with both Volkswagen and Mahindra about potential collaborations across a number of areas of our business. We are encouraged by both sets of talks and continue working to ensure these alliances help us better serve customers globally.
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post #2 of 30 (permalink) Old 11-27-2018, 07:34 AM Thread Starter
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Re: Ford Statement on Business Transformation

Ford will soon have difficult news as well.

As far as GM,

Some of the cars affected by their plant closings are the Chevrolet Cruze, Impala, and Volt, the Cadillac CT6 and XTS, and Buick LaCrosse. Barra said that the loss of production would lead to the discontinuation of the models in North America. Meanwhile, their Chevrolet Sonic, built at Michigan’s Orion Assembly, is living on borrowed time, as is the tiny Spark, which hails from GM Korea. That leaves the Chevrolet Camaro, Corvette, and Malibu, the upcoming Cadillac CT5, and the current Buick Regal to satisfy traditional car buyers.
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post #3 of 30 (permalink) Old 11-27-2018, 02:21 PM
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Re: Ford Statement on Business Transformation

What was the source of this article?

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post #4 of 30 (permalink) Old 11-27-2018, 02:31 PM Thread Starter
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Re: Ford Statement on Business Transformation

Quote:
Originally Posted by rmc523 View Post
What was the source of this article?
Ford internal news
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post #5 of 30 (permalink) Old 11-28-2018, 02:43 PM
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Re: Ford Statement on Business Transformation

"Ford will soon have difficult news as well."

What will that be?
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post #6 of 30 (permalink) Old 11-28-2018, 04:50 PM Thread Starter
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Re: Ford Statement on Business Transformation

Quote:
Originally Posted by Dawgman View Post
"Ford will soon have difficult news as well."

What will that be?
Nobody knows, because they have not announced it.
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post #7 of 30 (permalink) Old 11-28-2018, 06:51 PM
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Re: Ford Statement on Business Transformation

Wouldn't plant closings and layoffs be obvious? Fusion and MKZ was produced in two different plants, along with Taurus, MKT and Flex. Then there is MAP for Focus and C-Max. Clearly all workers won't be needed for the ramp up of any new model that kicks off. Especially with cancellations of models happening a year or more before new trucks and suvs are launched.

Then there is the fact that EVs take much less production space, development resources( most of the ICE engine, transmission, cooling system, exhaust, emissions people won't be needed), production components and much less production assembly. This will be especially impactful on line workers since Fords first EV will not launch until 2020 and be a low volume model.

VW already spelled out how it will happen, as they are going through that process already. And as ICE trucks and suvs transition to EVs, the same happens there.
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post #8 of 30 (permalink) Old 11-28-2018, 07:13 PM
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Re: Ford Statement on Business Transformation

I expect Malibu, Sonic, Spark, and Regal will be discontinued within 2 years, and Corvette and the Alpha platform vehicles will be GM's only cars. I wouldn't be surprised if something major happens at Ford's Flat Rock factory. Mustang could go to Chicago or even Canada if Edge and Nautilus move to CD6.
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post #9 of 30 (permalink) Old 11-28-2018, 08:26 PM Thread Starter
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Re: Ford Statement on Business Transformation

Why kill Volt? Lack of sales or profit or both??
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post #10 of 30 (permalink) Old 11-29-2018, 12:17 AM
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Re: Ford Statement on Business Transformation

Blah blah blah...it will still be 2020 before we see anything.
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