TSO Global Summit

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TSO Global Summit Mike Jordan September 13, 2000
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Automotive Consumer Services Group Mission
As the Companys Principal Source of Customer
Support Vehicle Service, Increase Shareholder
Value Through Profitable Growth in Aftersales
Products Services
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Where We Have Come From Transformation to a
Consumer-Focused Enterprise
All-Makes Service
2000
1980s - 1996
1997 - 1999
CONSUMER FOCUSED ENTERPRISE
GLOBAL ENTERPRISE
REGIONAL ENTERPRISE
8 BILS.
5 BILS.
10 BILS.

• FORD PARTS SERVICE
• Sell Parts
• Began Customer Satisfaction Emphasis
• Dealer Channel Focused

• FORD CUSTOMER SERVICE
• Customer Satisfaction Profitable Growth
• Dealer Channel Focused

• AUTOMOTIVE
• CONSUMER SERVICES GROUP
• Lasting Consumer Relationships
• Growth Beyond Dealer Channel

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ACSG Benefits to Ford Motor Company
ACSG VISION BE THE 1 AFTERSALES SERVICE
OPERATION IN THE WORLD
CREDIBLE TRANSFORMATION STORY FOR INVESTMENT
COMMUNITY
KEY COMPONENT OF COMPANYS GROWTH STRATEGY
SUPERIOR VALUE PROPOSITION RECAPTURE FORD
CUSTOMERS, WIN NEW CUSTOMERS
MOST CONSUMER TOUCHPOINTS
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Significant Growth Challenge For ACSG
Worldwide Revenue (Bils.)
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All-Makes Adjacency Channel
Dealer Channel
?
8.5
7
1998
1999
2003(PROJ.)
2000 (PROJ.)
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Opportunities in the Vehicle-RelatedServices
Value Chain
Estimated Lifetime Revenue Potential For a
Vehicle(10 Years / 100,000 Miles)
NEW VEHICLE PURCHASE
NEW USED VEHICLE FINANCING
INSURANCE
ACCESSORIES MAINT. REPAIR, RECYCLING
OTHER RELATED PRODUCTS SERVICES
27,000
41,000
68,000
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Growth Will Be Achieved ThroughDual Channels
GROW PROFITABILITY BUILD STAKEHOLDER VALUE
ALL-MAKES CHANNEL
FORD DEALER CHANNEL

• Retail Service
• Bodyshops
• Wholesale
• Accessories

• Retail Service
• Bodyshops
• Wholesale
• Other Products /Services

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Dealer Channel Strategy

• Build Customer Loyalty to Retain Existing
  Customers
• - Blue Oval Certified Program
• - Lincoln Premiere Experience
• - Expanded After Warranty Adjustments
• Reduce Defectors/Attract New Customers
• - Quality Care Maintenance/Customers for Life
• - Around the Wheel
• - Quality Care Service Centers/Quicklane/Rapid
  Fit
• - Ongoing Marketing Campaigns

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Dealer Channel Strategy

• Convenience/Capacity Improvements
• - Extended Hours and Saturday Service
• - Transportation Assistance Program
• - Roadside Assistance
• - Technician Recruitment
• - Advanced Production System/Shop Structure
• Improve Product/Price Competitiveness
• - Improve Cost Structure
• - Develop Cost Effective Repairs / Repair
  Product Planning

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J. D. Power Customer Service Index (All Makes)
Rank
815
Lexus
Cadillac
778
771
Jaguar
Honda
730
Toyota
Industry Average 683
680
677
Chevrolet
665
Chrysler
Ford
657
Kia
554
500
600
700
800
900
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Top 10 Dealer Issues

• Service Labor Time Request for Review
• Service Labor Time Standards Recall and ONP
• New Model Labor Time
• Parts Availability / Contract Carriage
• Transportation Assistance Plan
• Technician Recognition, Incentives and Retention
• Product Quality
• Worldwide Diagnostic System
• Retail Growth Support for Expanded Hours and
  Saturday Service
• QCDealer.com

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Six Sigma

• 14 Black Belt Candidates Trained
• 4 Black Belt Candidates in TSO
• Will Exceed 75 by Year-End
• Teamwork Will Help US Improve Customer
  Satisfaction

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Customer Satisfaction Is Job 1
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All-Makes Channel Provides Significant Growth
Opportunity
GROW PROFITABILITY BUILD STAKEHOLDER VALUE
DEALER CHANNEL
ALL-MAKES CHANNEL

• Retail Service
• Bodyshops
• Wholesale
• Accessories

• Retail Service
• Bodyshops
• Wholesale
• Other Products /Services

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All-Makes Growth Strategy

• Profitable Growth Expanding Downstream
• Leverage Existing Dealer Channel Expertise to
  Expand into All-Makes Wholesale and Retail Sales
• Acquire Profitable Companies that have Strong
  Brands and Best-in-Class Competitive Advantages
• Build Lasting Consumer Relationships Through
  Linkage Between Companies and Channels

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Consumer-Focused Strategy
E-ENABLED CUSTOMER
INFORMATION FLOWS
CUSTOMER VALUE
PROPOSITION
CORE
NEW
AUTO
VEHICLE
RETAIL
USED
VEHICLE
RETAIL
CONSUMERS
EXTENDED
AUTO
SERVICE
FINANCING
MAINTENANCE
AUTO
LIGHT REPAIR
INSURANCE
HERTZ/FLEET
MANAGEMENT
REVENUE SYNERGIES --
COST SYNERGIES --
BUNDLING OF SERVICES
GOODS SERVICES
CROSS SELLING
FLOW

ACSG SEGMENTS
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Growth Initiatives ACSG
SEGMENTS
ACTIONS TO DATE
Mass Customization Europe Vehicle
Personalization NA Macro - Accessories
Vehicle Personalization
Extended Service Contracts
Recycling
North America / Europe
Collision
Maintenance Light Repair
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How The Linkages Are Delivered
CONSUMER EXPERIENCE MANAGEMENT

• Superior Value Proposition for Customers

VISIBLE TO CUSTOMER
VALUE-ADDED SERVICE PRODUCT PACKAGES

• Delight the Customer

EXTERNAL CROSS SELL

• Satisfy the Customer

INTERNAL CROSS SELL

• Adjacencies as Customer / Supplierto Other Ford
  Businesses Adjacencies

INTERNAL TO FORD MOTOR COMPANY
BEST PRACTICE SHARING

• Benchmarking
• Training
• Process Optimization

LINKAGES SYNERGIES WILL CREATE ADDED VALUE FOR
FORD MOTOR COMPANY THE CUSTOMER

• Purchasing
• Investment
• Human Resources

COST-REDUCING SYNERGIES
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ACSG Business Strategy
DEALER CHANNEL
ALL-MAKES CHANNEL

• Offer High-Quality Products Services Resulting
  in Profitable Growth
• Improve Customer Satisfaction to Build Long-Term
  Loyalty to Ford Motor Company
• Continue Transformation to a Consumer-Focused
  Business

• Pursue Profitable Growth Opportunities by
  Expanding Downstream
• Acquire Profitable Companies with Strong Brands
  Best-in-Class Competitive Advantages
• Best Practices Sharing

GOAL KEEP / RECAPTURE FORD CUSTOMERS
GOAL ADD NEW CUSTOMERS
LINKAGES

• GOAL BUILD LASTING CONSUMER RELATIONSHIPS
• PROVIDE UNIQUE COMPREHENSIVE SERVICE OFFERINGS
• DEVELOP LINKAGES BETWEEN CHANNELS OTHER FORD
  MOTOR COMPANY PRODUCTS SERVICES

CUSTOMER FOCUS
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TSO Contributions and Successes

• Technician Online Community
• Professional Technical Society
• Labor Time Integrity and Efficiency
• Service Publications/Technical Training on Web
• Owners Guides on CD-ROM

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Trustmark Alliance Efforts

• Utilizing the Economics of a Global Equipment
  Contract Across Trustmark Partners 
•   
• Commonizing Labor Times Across Vehicle Platforms
  (Mazda Tribute/Ford Escape) 
•   
• Trustmark Agreement With Tech Training Standards 
•   
• Common Website for Trustmark Information
• Common Creation of Service Information Across
  Trustmark

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Whats On Your Mind?