Automotive News World Congress

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Automotive News World Congress

• Derrick Kuzak
• Group Vice President Global Product Development
• Ford Motor Company
• January 23, 2008

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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

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How We PlanGlobal Product Plan Principles
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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
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Investment Efficiency Improvement
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How We Work Achieving World Class Efficiency
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Product Development Objectives
PD Factory
More exciting products, Greater efficiency, Less
cost
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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

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Global Product Development System Accelerating
Product Development
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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)

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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 DR
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Our Product Strategy
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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

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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

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Design Leadership Millimeters Matter
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Ford Verve Concept North America
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Ford Verve Concept - China
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Ford Verve Concept - Europe
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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

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Infotainment and Connectivity - Partnering
with the Best
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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
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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

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The Sony Partnership
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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

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Branding with the Best
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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

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Showroom Fuel Economy Label Competitiveness2008
vs 2007 Product Line
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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
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Fuel Economy and Performance Competitiveness -
Escape I4
Better
2009 Escape 2.5L 6spd Auto
Competitor A
Fuel Economy
Competitor B
Performance Feel
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Fuel Economy and Performance Competitiveness -
Fusion I4
Better
I4 09 Fusion Auto FWD
Competitor A
Competitor B
Fuel Economy
Competitor C
Performance Feel
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EcoBoost
Improved Fuel Economy
Direct Injection
(10-20)

and


and
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EcoBoost Torque Comparison
Engine Torque Comparison
3.5L V-6 EcoBoost
4.6L V-8
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Whats Different Fords EcoBoost

• Learned from extensive RA 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

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EcoBoost Application can be Tailored
EcoBoost as a base Engine Mid-Size Car
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EcoBoost Can be Tailored
EcoBoost as a Premium Engine MKS
Better
3.5L EcoBoost
Fuel Economy
4.6L
Performance Feel
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Fuel Economy as a Reason To Buy Near Term Fuel
Economy Improvements Mid-Size Utility
Fuel Economy
EPAS, BMS, Fast Engine Warm-up, ADFSO, N/V opt
Downsized PT with EcoBoostTechnology
5 to 6 speed ASC
150 LBS
Final
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EcoBoost Consumer Perspective
Payback of Incremental Purchase Price Through
Fuel Economy Savings
Lower Is Better
EcoBoost I-4
I-4 Diesel
I-4 Hybrid
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EcoBoost Migration Plan
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Thank You