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Discussion Starter #41
Here it is:

Good morning, good afternoon and good evening to my colleagues at Ford Motor Company.

May 22, 2017, was 135 days ago. And at that time, I committed to you and the shareholders of our company that I would take the time to do a deep dive into what is happening at Ford. It’s becoming clear to me how exciting our collective future is going to be. And you’ll see as you read on that it involves confirmation of our direction today with plans for how we’ll be a better company into the future.

I am in New York today and about to give an update to investors on our plan and progress. Because pieces of our future will start to come together for these public audiences, I wanted to share the highlights with you first.

When I accepted this role, I knew that it included the requirement to cast a vision for a winning future and to identify the tools to empower us.

Bill Ford and I started this journey by gathering the new leadership team together and joining hands to work in concert to script that vision. I worked hard to ensure that we could stare in the mirror at ourselves and candidly and honestly assess our own fitness. I like what I see but I also have a strong sense for what it is going to take for us to win in this very competitive space.

In addition to the usual competitors, my time in Silicon Valley confirms that many non-traditional competitors are taking aim at our industry. These are tech companies who see the future of our vehicles as “rolling computers” versus the way we’ve historically looked at our business.

This is known as disruption.

Disruption is like the thief in the night that one didn’t expect but that can steal your livelihood. The solution to dealing with disruption is fitness. Fitness is a test not only of cost but also of effectiveness.

When you’re a long-lived company that has had success over multiple decades, the decision to change is not easy – culturally or operationally.

It was remarkable how this company came out of the recession in 2008, and made record profits in 2015. But we’re already starting our plans for 2018, which means those events are a full decade in our rearview mirror. Everyone we compete with got better in that decade.

We have to evolve. And today we begin to bend the arc of that evolution.

First, we have authored a new “winning aspiration” for the business. Yes, you can think of this as a vision or mission statement. It expresses how we will leverage our trusted 114-year legacy, our love and passion for the car business, and our ambition for the future. This is our North Star.

“Ford Motor Company was built on the belief that freedom of movement drives human progress. It’s a belief that has always fueled our passion to create great cars and trucks. And today, it drives our commitment to become the world’s most trusted mobility company, designing smart vehicles for a smart world that help people move more safely, confidently and freely.”

This winning aspiration is what you design against, what you infuse into every product and service. Champion it and bring it to life – if it stays as words then it means nothing.

During the 100-day deep dive, I heard many questions about our direction. I wanted to draft an early list of principles that clarifies at the highest level any ambiguity about our direction. There are five:

1. Ford will prepare for disruption by becoming fit.

2. We will be in the vehicle business – moving both people and goods.

3. Ford’s vehicles will be smart and connected.

4. These smart vehicles will thrive in a new transportation operating system.

5. Ford will evolve to capitalize on new business opportunities within this transportation operating system.

As we move forward with this plan, guided by these principles, a team led by Stuart Rowley is assembling from all over the company to address the fitness redesign effort.

So, in summary, we are plotting a new direction toward smart vehicles in a smart world. Every “T” isn’t crossed nor “I” dotted because I need your help in making this real, making it better. But I want to end any swirls or conflicts because we are a team focused on making a great future for all.

For an in-depth summary of our roadmap and plan, you can click here to read what we are presenting to investors, and click here to view the presentation deck.

Finally, I want to tell you how much I have appreciated the kindness and support of so many as we’ve made this change. Thank you for all you do for Ford Motor Company.

Jim Hackett
 

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Discussion Starter #42
NEW YORK, – Ford Motor Company today is providing a strategic update to investors, detailing plans to leverage its unique product strengths, trusted brand and global scale to refocus and thrive in an evolving and disruptive period for the auto industry.

The investor presentation follows a four-month deep dive into Ford’s strategy and business operations led by President and CEO Jim Hackett and Ford’s senior leadership team. Hackett said Ford will improve its operational fitness, refocus capital allocation and accelerate the introduction of smart vehicles and services.

“Ford was built on the belief that freedom of movement drives human progress,” said Hackett, who became Ford president and CEO on May 22. “It’s a belief that has always fueled our passion to create great cars and trucks. And today, it drives our commitment to become the world’s most trusted mobility company, designing smart vehicles for a smart world that help people move more safely, confidently and freely.”

The full slide deck of the presentation can be found here. Ford is reaffirming its 2017 full-year financial guidance and said its 2018 outlook will be provided in January.

Reiterating its long-term goal of an 8 percent automotive operating margin, Ford says it will embrace the profound technological changes and new competition buffeting the industry. To deliver, the company is expanding its scope to include vehicles and services – all designed around human-centered experiences. The company will tap its strengths integrating hardware and software in complex devices, its proven ability to deliver scale and the trust tied to the Ford brand.

Specifically, Ford is:

Accelerating the introduction of connected, smart vehicles and services customers want and value. By 2019, 100 percent of Ford’s new U.S. vehicles will be built with connectivity. The company has similarly aggressive plans for China and other markets, as 90 percent of Ford’s new global vehicles will feature connectivity by 2020,
Rapidly improving fitness to lower costs, release capital and finance growth. Ford is attacking costs, reducing automotive cost growth by 50 percent through 2022. As part of this, the company is targeting $10 billion in incremental material cost reductions. The team also is reducing engineering costs by $4 billion from planned levels over the next five years by increasing use of common parts across its full line of vehicles, reducing order complexity and building fewer prototypes.

Allocating capital where Ford can win the future. This starts with the company reallocating $7 billion of capital from cars to SUVs and trucks, including the Ranger and EcoSport in North America and the all-new Bronco globally. Ford also has plans to build the next-generation Focus for North America in China, saving capital investment and ongoing costs. Further, Ford is reducing internal combustion engine capital expenditures by one-third and redeploying that capital into electrification – on top of the previously announced $4.5 billion investment.

Embracing partnerships. Ford will continue to leverage partnerships, remain active in M&A and collaborate to accelerate R&D. The company recently announced it was exploring a strategic alliance with Mahindra Group as it transforms its business in India, and Zoyte with the intention of developing a new line of low-cost all-electric passenger vehicles in China. When it comes to autonomous vehicle development, the company recently announced a relationship with Lyft to work toward commercialization and a collaboration with Domino’s Pizza to research the customer experience of delivery services.

Expanding electric vehicle revenue opportunities. The company recently announced a dedicated electrification team within Ford, focused exclusively on creating an ecosystem of products and services for electric vehicles and the unique opportunities they provide. This builds on Ford’s earlier commitment to deliver 13 new electric vehicles in the next five years, including F-150 Hybrid, Mustang Hybrid, Transit Custom plug-in hybrid, an autonomous vehicle hybrid, Ford Police Responder Hybrid Sedan, and a fully electric small SUV.

“When you’re a long-lived company that has had success over multiple decades the decision to change is not easy – culturally or operationally,” Hackett said. “Ultimately, though, we must accept the virtues that brought us success over the past century are really no guarantee of future success.”



Revamping product development, modernizing factories

At the same time, Ford is redesigning its operations to better compete in this disruptive era.

Hackett cites as a template the example of how the company reimagined the all-new 2015

F-150. Since then, the F-Series has gained market share and the average transaction price has increased 16 percent. It has improved fuel economy and increased capability for customers, thanks in part to a 700-pound weight reduction that helped make the F-150 the company’s most positive contributor to CAFE standards for model year 2018. Additionally, 90 percent of the manufacturing equipment can be reused for the next-generation F-150, reducing future capital requirements. Finally, the innovation on aluminum and light weighting will pay off across a range of Ford trucks and SUVs.

Other priorities include:

· Reducing orderable combinations of many nameplates, focusing on what customers value most. Already the team has identified a ten-fold reduction of orderable combinations in the next-generation Escape and is moving from approximately 35,000 combinations in the current generation of Fusion to 96 in the next generation.

· Rethinking product development processes and incorporating new technology. In the next five years, Ford is aiming to reduce new vehicle development time by 20 percent, with new tools and fewer orderable combinations. Through the use of virtual assembly lines, the company has been able to reduce new model changeover time by 25 percent.

· Redesigning the company’s factories of the future. Accelerating and scaling 3D printing, robotics, virtual reality tools and big data will improve logistics and enable a more efficient manufacturing footprint.

“We believe Ford will achieve its competitive advantage by focusing deeply on our customers – whether they’re drivers, riders or cities – and that’s where we are playing to win,” Hackett said.
 

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So indeed very light on specifics with a focus on cost cutting. Only news is that all Ford cars will be connected. No other new product insights.

No mention of Lincoln?
 

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So indeed very light on specifics with a focus on cost cutting. Only news is that all Ford cars will be connected. No other new product insights.

No mention of Lincoln?
Lincoln was mentioned on Page/slide 52.
 
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Weirdly Lincoln is not part of their strategic vision at all.
The complete lack of discussing it makes me wonder if a separate announcement will be made at another time?

Seems like a stupid, short sighted move to me, if it's not part of the vision.
 
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Not good for car fans, workers (generally speaking) and still no real idea what they are going to do.
 
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autonews.com
Ford's Hackett Calls for Sweeping Changes in Vehicle Development, Investment
Michael Martinez

Jim Hackett: "We must accept the virtues that brought us success over the past century are really no guarantee of future success." Photo credit: Rex Larson

DETROIT -- Ford Motor Co. CEO Jim Hackett on Tuesday outlined sweeping changes that include reallocating $7 billion from cars to SUVs, crossovers and pickups, speeding vehicle development, slashing costs by $14 billion and building Internet connectivity into Ford's full U.S. lineup within two years.

The updates are designed to improve Ford's competitive fitness, a term Hackett has used to describe how the automaker must evolve to stay ahead of its competition.

"When you're a long-lived company that has had success over multiple decades the decision to change is not easy -- culturally or operationally," Hackett said in a statement. "Ultimately, though, we must accept the virtues that brought us success over the past century are really no guarantee of future success."

Hackett's goals include aggressive cost-cutting. He plans to slash internal combustion engine capital expenditures by one-third and redeploy that money to electrification efforts. The company said Monday it would dedicate a team to expanding the number of fully electric cars Ford would offer.

Overall, Ford plans to reduce the rate of its automotive cost growth by half through 2022. It plans to cut $10 billion in incremental material costs and reduce engineering costs by $4 billion over the next five years.

Ford said it's reallocating $7 billion of capital from cars to light trucks. Earlier this year, Ford decided to move production of its next-generation Focus sedan from North America to China, saving money.

The automaker did not say whether it planned to kill any specific car nameplates. It did not say it would exit any vehicle segments, but rather that would continue in a more focused, reduced manner.

It also plans to simplify what vehicles customers can order. Ford said the team has identified a tenfold reduction of orderable combinations in the next-generation Escape. In addition, it's moving from 35,000 combinations in the current Fusion to 96.

Ford plans to add Internet connectivity in every one of its vehicles in the U.S. by 2019. By 2020, 90 percent of Ford's new global vehicles will feature connectivity, it said.

Ford said it was reaffirming its long-term goal of an 8 percent automotive operating margin as it looks to boost profitability. It also reaffirmed its financial guidance for 2017 of a $9 billion pretax profit.

CEO STRATEGIC UPDATE
 

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There’s a lot of money to be had with a luxury brand, they’ll regret it if they just go down to Ford. Platinum and Limited trims can only have so much reach.
I don't think they are preparing to cut Lincoln off entirely as a brand.

However, the pessimist in me realizes that after the deliberate non-mentioning of Lincoln in the announcement it is abundantly clear that Ford's senior management is focused solely on Ford and Ford alone. If this truly is the case then Lincoln may just end up being an "accessory" brand like Acura is to Honda and Ford's will continue to go upscale in design, performance, and features until there is virtually no distinction between it and Lincoln other than a badge.

The optimist in me hopes that Ford will realize a healthy Lincoln brand is crucial to their global success, and that all of the progress Lincoln has made so far should not be interrupted.

I guess we'll have to wait and see. :banghead:
 

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Discussion Starter #60
Simply amazing.....from 35K combinations to only 96 for Fusion. No wonder some people fret when ordering. If you are OCD, you are in deep ****e.

And I don't know why I was expecting anything different than a long winded discussion from Jim, whereby he says very little in proportion to his word count. That is exactly what we have gotten from him thus far. The man can talk talk TALK, and that is conveyed in his 10 page PDF file where we still have a lot of unanswered questions.

And yeah, I think it is quite possible that Lincoln will soon be on the chopping block because we have not heard anything about their future, and even internally it is all cloudy and uncertain. Or at least some kind of radical change or shift.

So far, not impressed, but I will give him a bit more time before I thrash him and remind all who found fault with Fields and assumed he would be much better.
 
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