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Automotive News World Congress

Automotive News World Congress. Derrick Kuzak Group Vice President Global Product Development Ford Motor Company January 23, 2008. Our Plan . Aggressively restructure to operate profitably at the current lower demand and changing model mix

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Automotive News World Congress

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  1. Automotive News World Congress Derrick Kuzak Group Vice President Global Product Development Ford Motor Company January 23, 2008

  2. Our Plan • Aggressively restructure to operate profitably at the current lower demand and changing model mix • Accelerate the development of new products that customers want and prefer and to grow profitably • How We Plan • How We Work • Our Product Strategy • Finance our plan and improve our balance sheet • Work together

  3. How We PlanGlobal Product Plan Principles

  4. Ford Lincoln Average Age of Portfolio (Years) 35% Improvement 2006 2007 2008 2009 2010 2011 Memo: Competitor A 3.1 – 4.2 yrs, Competitor B 3.9 - 4.8 yrs

  5. Commonality • Part re-use and modular designs Complexity Reduction Procurement Efficiencies Plant Manufacturing • Orderable combinations • Low-cost country die sourcing • Physical-based costing • Platform reductions • Direct tool sourcing with cost models • Digital pre-assembly validation • On-line quoting for tools • Flexible automation: body shop, plant facilities • Direct gage sourcing / Generic gage designs Investment Efficiency Improvement

  6. How We WorkAchieving World Class Efficiency

  7. # Of programs # Of programs Engineering Engineering weighted by weighted by costs costs market impact market impact Efficiency Output = # Programs = Input Engineering Costs Product Development Objectives PD Factory More exciting products, Greater efficiency, Less cost

  8. Product Development Efficiency Improvement Actions • Global Product Development System • First-time Through Capability • Improved Virtual Capabilities • Global Product Development • Engineering Footprint Migration • Giving Engineers Time To Engineer

  9. Global Product Development System – Accelerating Product Development

  10. Improved Virtual Capability • Overall prototype spending cut in HALF over 3 year period • 35% fewer prototype vehicles (Increased Virtual Capability and Commonality) • 20% less cost per unit (Increased Commonality) • 20% less spending on prototype tooling (Increased Virtual and Commonality)

  11. Global Product Development - How We Are Working Definition Proposal Single Lead Design and Engineering Activity for all Top Hats of each Platform Top Hat Content and Vehicle Integration Top Hat Systems/Commodities Shared within Platforms Single Lead Engineering Activity for each Platform Platform • Single Lead • For each system • Body • Chassis • E/E • P/T Core Commodities/Subsystems Lead Engineering/ Purchasing D&R

  12. Our Product Strategy

  13. Global Ford Brand Product Strategy • Bold, emotive exterior designs • Great to drive • Great to sit in • Comfort and convenience of a second home on wheels • Remarkably quiet • Fuel Economy as a reason to buy • Unmistakably a Ford in look, sound, feel • All with exceptional value

  14. Design Leadership … What It Takes • New design process, focused on target customer and design progressives • Engineering creativity and resolve to deliver winning designs • Brand aligned, consistent Design DNA • Exciting designs – “unexpected from Ford” - that bring customers to the showroom

  15. Design Leadership: Millimeters Matter

  16. Ford Verve Concept – North America

  17. Ford Verve Concept - China

  18. Ford Verve Concept - Europe

  19. Global Ford Brand Product Strategy • Bold, emotive exterior designs • Great to drive • Great to sit in • Comfort and convenience of a second home on wheels • Remarkably quiet • Fuel Economy as a reason to buy • Unmistakably a Ford in look, sound, feel • All with exceptional value

  20. “Infotainment” and Connectivity - Partnering with the Best

  21. Microsoft & the Speed of SYNC • Generally, product cycle times in the automotive industry range 3 to 5 years • The electronics industry evolves more rapidly • SYNC is a Platform that can bridge these two industries • Applications can be built on top of the platform • Faster development of new features enabled through software • Software also provides upgradeability Automotive Cycle Time Consumer Electronics Cycle Time

  22. The Evolution of SYNC • SYNC started with Hands-Free Phone and Media Player capabilities • Now SYNC 911 Assist and Vehicle Health Report will be available later this year • Ford will add in-vehicle GPS technology in 2008 to further enhance SYNC services • SYNC will offer software upgrades through our dealerships

  23. Sony Branded Audio Unit The Sony Partnership

  24. Sirius & The Latest In Satellite Communications • Extending the Ford/Sirius relationship beyond media content to provide information and entertainment content through the Travel LinkTM navigation system. • This includes: • Real-Time Traffic • Movie Listings • Weather • Sports • Gas Prices

  25. Branding with the Best

  26. Global Ford Brand Product Strategy • Bold, emotive exterior designs • Great to drive • Great to sit in • Comfort and convenience of a second home on wheels • Remarkably quiet • Fuel Economy as a reason to buy • Unmistakably a Ford in look, sound, feel • All with exceptional value

  27. Showroom Fuel Economy Label Competitiveness2008 vs 2007 Product Line

  28. Fuel Economy and Performance Competitiveness - Flex Better Flex 3.5L 6spd Auto FWD Flex 3.5L 6spd Auto AWD % Fuel Economy AWD Competitor A AWD Competitor B AWD Competitor C % Performance Feel

  29. Fuel Economy and Performance Competitiveness - Escape I4 Better 2009 Escape 2.5L 6spd Auto Competitor A %Fuel Economy Competitor B %Performance Feel

  30. Fuel Economy and Performance Competitiveness - Fusion I4 Better I4 09 Fusion Auto FWD Competitor A Competitor B Competitor C %Fuel Economy %Performance Feel

  31. EcoBoost Turbo-Charging Reduced Emissions(7 – 15%) Downsizing Equal or Better Performance Direct Injection Improved Fuel Economy (10-20%) + and = + and

  32. EcoBoost Torque Comparison Engine Torque Comparison 3.5L V-6 EcoBoost 4.6L V-8

  33. What’s Different – Ford’s EcoBoost • Learned from extensive R&A work and initial Mazda applications • Optimized: • Ports and chamber through extensive CAE for maximum efficiency without compromising performance. • Combustion system for extended stoichiometric operation and maximized compression ratio. • Cam events and turbo charger for low speed performance for best powertrain system matching

  34. Better Small I4 EcoBoost Powershift 2.5L 6spd %Fuel Economy % Performance Feel EcoBoost Application can be Tailored EcoBoost as a base Engine – Mid-Size Car

  35. EcoBoost Can be Tailored EcoBoost as a Premium Engine – MKS Better 3.5L EcoBoost % Fuel Economy 4.6L %Performance Feel

  36. Fuel Economy as a Reason To Buy Near Term Fuel Economy Improvements Mid-Size Utility % Fuel Economy 5 to 6 speed +ASC EPAS, BMS, Fast Engine Warm-up, ADFSO, N/V opt Downsized PT with EcoBoostTechnology 150 LBS Final

  37. EcoBoost Consumer Perspective Payback of Incremental Purchase Price Through Fuel Economy Savings Lower Is Better EcoBoost I-4 I-4 Diesel I-4 Hybrid

  38. EcoBoost Migration Plan

  39. Thank You

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