EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm
FINANCIAL / INVESTOR
COMMUNITY MEETING
Derrick Kuzak
Group Vice President, Global Product Development
January 16, 2008
 
 

 
Our Plan
 Aggressively restructure to operate
 profitably at lower demand and changing
 model mix
 Accelerate the development of new
 products that customers want and prefer
 Finance our plan and improve our balance
 sheet
 Work together
 
 

 
Agenda
 How We Plan
 How We Work - Achieving World Class
 Efficiency
 Products and Technologies We Are
 Delivering
 
 

 
How We Plan:
Global Product Plan Principles
Goal
Principles
Ensure a customer view of success
 Achieve benchmark levels of:
  % of volume new or significantly freshened
  Average age of portfolio
  Number of unique showroom nameplates
 Achieve benchmark cadence of timing and
 scope of product change: 3/6/9/12 year
 cadence
Reduce investment through
simplification and increased efficiency
 Achieve benchmark levels of:
  Platforms
  Powertrain architectures and combinations
  Order guide complexity
 Ford Brand vehicles shared globally
 Fully differentiated Ford-to-Lincoln vehicles
 Investment at benchmark levels
 
 

 
Ford
Lincoln
2006
2007
2008
2009
2010
2011
Memo: Toyota 3.1 - 4.2 yrs, Chevy 3.9 - 4.8 yrs
35% Improvement
Average Age of Portfolio (Years)
 
 

 
Metric Performance (Global Ford)
Volume per Platform Family
Core Platforms
Total Platforms
Memo: Toyota 400K - 570K
Memo: Toyota 18 - 15
2006
2007
2008
2009
2010
2011
2012
Platform families reduce through the period.
Average volume per core platform will continue to increase.
15% Improvement
100% Improvement
 
 

 
 Commonality
  Part re-use and modular designs
 Complexity Reduction
  Orderable combinations
  Platform reductions
 Procurement Efficiencies
  Low-cost country die sourcing
  Direct tool sourcing with cost models
  On-line quoting for tools
  Direct gage sourcing / Generic gage designs
 Plant Manufacturing
  Physical-based costing
  Digital pre-assembly validation
  Flexible automation: body shop, plant facilities
 Engineering
  Low-cost country engineering
  Prototype construction reductions
  CAE validation vs. physical validation
  Production tool pull-ahead in lieu of prototype
 tooling
  Global engineering
Investment Efficiency Improvement
 
 

 
How We Work -
Achieving World Class Efficiency
 
 

 
Product Development Objectives
Efficiency
Output
Input
# Programs
Engineering Costs
=
=
More exciting products, Greater efficiency, Less cost
 
 

 
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
 
 

 
GPDS - Accelerating Product Development
Calendar Year
2004
2006
2008+
New Top Hat
Base
24%
faster
49%
faster
All New Vehicle
(Top Hat + Platform)
Base
19%
faster
27%
faster
 
 

 
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)
 
 

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

 
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 or Lincoln in look, sound, feel
 All with exceptional value
 
 

 
Products and Technologies
We Are Delivering
 
 

 
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
 
 

 
Design Leadership: Millimeters Matter
 
 

 
Product DNA … Unmistakably a Ford
in Look, Sound, Feel
 
 

 
Product DNA - Attributes
 Accommodation and Usage
 - Driver and Passenger
 Accommodation
 - Primary and Secondary
 Controls
 - Stowage
 - Seat Comfort
  Perceived Quality
 - Switch Feel
 - Illumination
 - Material Feel
 - Welcome Strategy
 Vehicle Human-Machine Interface
 - Perception
 - Controllability
 - Comprehensibility
 Vehicle Dynamics
 - Ride
 - Steering
 - Handling
 - Braking
  Vehicle NVH
 - Powertrain Sound Quality
 - Door Closing Sound
 - Chimes
  Performance and Driveability
 - Performance Feel
 - Driveability
 
 

 
Product DNA:
Designing Seats with DNA
 
 

 
A Clear Technology Strategy To Set
Priorities And Guide Actions
A Clear Technology Strategy To Set
Priorities And Guide Actions
Sustainability
“Greener Miles”
 Achieving
 substantial CO
2 and
 fuel economy
 improvement by
 2015
 Improving interior air
 quality
 Maximizing use of
 renewable resources
Safety
“Safer Miles”
 Achieving Consumer
 Reports Top
 Recommended Buy
 Introducing highly
 valued, breakthrough
 and differentiated
 features
Design
“Bolder Miles”
 Exciting interiors
 and exteriors
 aligned to Brand
 Leveraging global
 platforms with the
 right proportions
 Achieving design
 leadership
 
 

 
 
 

 
Highlights:
 Exclusivity with Microsoft until November
 2008.
 SYNC is already available today on 12 Ford,
 Lincoln and Mercury vehicles. By the end of
 2008, it will be offered on nearly every new
 Ford, Lincoln and Mercury vehicle.
 Standard on Lincoln & High-Series
 Ford/Mercury vehicles.
 911 Assist available on some 2009MY Ford,
 Lincoln and Mercury vehicles.
 Many awards, including Popular Mechanics
 “Automotive Excellence” and “Breakthrough”;
 Bluetooth Special Interest Group “Best of CES
 2008”; CNET “Best of CES” (2007).
Best-in-Class media device and hands-free phone connectivity
system co-branded with Microsoft.
“SYNC” Media Gateway Module
“SYNC” Media Gateway Module
 
 

 
Ford will be the first OEM to offer Sony branded audio in North America
and will include a signature electronics finish panel design
Highlights
 Launches 2008CY on the 2009MY
 F-150 and Flex
 Full migration on all retail Ford and
 Mercury vehicles (including
 imports)
 Sony brand rated #1 most powerful
 brand in the 2007 Brand Power
 study
 Partnership poised to leverage co-
 marketing and technology sharing
 opportunities
Sony Branded Audio
Sony Branded Audio
 
 

 
Next-Generation
Navigation System
Custom Connectivity
Custom Connectivity
 Advanced voice-recognition technology
 Advanced voice-recognition technology
 Personal juke box that can store up to 2,400 songs
 Personal juke box that can store up to 2,400 songs
 New 8-inch touch-screen display
 New 8-inch touch-screen display
 
 

 
SIRIUS Travel Link
§ Up-to-the-minute information
 and entertainment
§ Current gas prices from an
 estimated 120,000 filling
 stations
§ Local, real-time traffic
 information for 78 markets
§ Coast-to-coast weather
 conditions with five-day
 forecasts
§ Personalized sports scores and
 schedules
§ Movie listing details, including
 times, theater addresses,
 ratings and running lengths for
 over 4,500 theaters
 
 

 
 
 

 
2009 Lincoln MKS
 
 

 
Lincoln MKS Key Selling Features
Progressive Design
§ New Split Grille (new ‘Lincoln’)
§ New Wheel Line-up (dual finishes, long
 spokes, tight radii, great depth)
§ Genuine Wood & Metal
§ Sporty Confidence, Daring
§ Next Gen Keypad
Refined, Yet Dynamic American Design
Driver’s Comfort
§ NVH package
§ “Comfort” Seat w/ Lincoln Premium
 Leather
§ Twin Panel Moonroof
§ Heated and Cooled Front Seats
§ BIC Rear Seat Package & Trunk Vol.
§ Capless Fuel Fill
§ Maximize Customer Safety
Business Class Experience
Smooth Power On-Demand
Engaged Drive
§ 3.7L V6 FWD/AWD
§ Responsive Suspension/Tuning
§ 19” Wheels with V-Rated Tires
§ 20” Wheels (late availability)
§ Advance Trac and Tiptronic Shifter
Connected and In Command
Technology at your command
§ Voice Activated NAV
§ Passive Entry/ Passive Start
§ Push Button Start
§ SYNC, Sat. Radio & Premium Branded
 Audio
§ Adaptive Cruise and Adaptive HID
§ Smart Beams & Rain Sen. Wipers
 
 

 
2009 Ford Flex
 
 

 
Flex Key Selling Features
Flex Key Selling Features
 § Bold two-box design with confident stance
 § Signature Ford 3-bar chrome grille
 § Distinctive Character Lines
 § Two-Tone Roof
 § 19” Aluminum Wheels
 § HID headlamps, LED Tail lamps
Dares To Be Different Design
 § Segment Leading 2nd Row Legroom
 § 2nd Row Footrests
 § Optimized 2nd, 3rd row Ingress and Egress
 § Premium Fit and Finish
 § Soft Touch panels and armrests
 § Fold Flat Front Passenger, 2nd, 3rd Row
 Seats
 § Power Liftgate
Unexpected Comfort & Flexibility
 § Refrigeration System (Class Exclusive)
 § Sync (Class Exclusive)
 § EasyFuel, Capless Fuel (Class Exclusive)
 § Ambient Lighting (Class Exclusive)
 § Multi-panel Vista Roof
 § Voice Activated Navigation, Real Time
 Traffic and Weather Updates
Leading Technology
 § Standard AdvanceTrac with Roll Stability
 Control
 § Standard Side Canopy Air bags
 § Available All Wheel Drive
 § Rear Back Up Camera
Advanced Safety
 
 

 
2009 Ford F-150
 
 

 
Next Generation Navigation
Next Generation Navigation
SYNC
SYNC
SONY Branded Audio
SONY Branded Audio
Integrated Trailer
Integrated Trailer
Brake Controller
Brake Controller
Increased Stowage
Increased Storage
F-150 All New Interior Lariat
 
 

 
F-150 Key Selling Features
New Content Innovations
 §  Fully Flat Rear Cargo Load Floor
 §  Heated / Cooled Seats
 §  Tailgate Step
 §  Power Running Boards
 §  Retractable Box Side Step
 §  Ambient Lighting
 §  22” Wheels
 §  Next Generation Navigation System
 §  Premium Branded Audio
 §  SYNCTM
 §  EasyFuel Capless Re-fueling
 §  Trailer Tow Side Mirrors
  Power, Telescope, Folding
 §  Rain Lamps
 §  Trailer Brake Control
 §  Trailer Sway Mitigation
New Content for the Segment
Rear Back-up Camera (View Through
Navigation)
New Content for Ford NA
 
 

 
Explorer America Concept
Explorer America Concept
 
 

 
Explorer America Concept
Explorer America Concept
 § 2.0-liter 4 cylinder engine with
 EcoBoost technology
 § 275 hp and 280 lb.-ft of torque
 § Offered with premium 3.5-liter V6 with
 about 340 hp
Powertrain
 § Modern, muscular design language
 § Integrated three-bar grille
 § Defined power dome hood
 § Wrap-around rear glass panel window
 § Sliding rear door
 § Single-touch stackable, sliding seats
 § Work table with seats deploy from the
 tailgate
 § Three-dimensional compass and
 navigation unit built right into the
 instrument panel
Design
 § Ford Explorer America concept is a
 new kind of utility with better fuel
 efficiency
 § Room for six and their gear
 § Moderate towing and off-roading
 capabilities
Fuel-Saving Utility
 
 

 
EcoBoost
MORE WITH LESS
Better fuel economy? Up to 20%. And more power. Simple fact: Even with
advanced technologies, the majority of vehicles worldwide will be gasoline
powered. That's millions. Ford Motor Company’s new gas-turbo direct-
injection engines can help. Here’s how EcoBoost does more with less:
UP TO
20 PERCENT FUEL
IMPROVEMENT
UP TO 15 PERCENT
REDUCTION IN CO2
EMISSIONS
IMPROVED
ENGINE
PERFORMANCE
 
 

 
3.5L V-6 Gasoline Turbo-Charged Direct Injection
4.6L V-8
Gasoline Turbo-Charged Direct Injection
Torque Comparison
Engine Torque Comparison
 
 

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

 
Ford Verve - B Car Concept
 
 

 
B Car - China
 
 

 
B Car - Europe
 
 

 
Lincoln MKT Concept
Lincoln MKT Concept
 
 

 
Lincoln MKT Concept
Lincoln MKT Concept
 § Distinct Lincoln design and luxury in a
 spacious utility vehicle
 § Signature double-wing chrome grille
 § LED headlamps wrap around the
 sculptured hood
 § Full-width LED taillamps
 § Liquid Bronze Metallic paint
 compliments the chrome brightwork
 § Intricate 21-inch, 12-spoke
 interlocking chrome aluminum wheels
 § Four executive-sized chairs mirroring
 those in first-class aircraft cabins
 § Patented 3-D interior lighting
 technology
Luxurious Utility
 § 3.5-liter V-6 engine with EcoBoost
 technology delivers 415 horsepower
 and 400 lb.-ft of torque
 § Flex-fuel capable
 § Weight-saving, eco-friendly
 “upcycled” materials boost fuel
 efficiency
Powerfully Efficient
 § Upcycled plastics from discarded soft
 -drink bottles and other polyester
 waste reduce energy consumption
 § Plush, hand-knotted rug made from
 banana silk
 § Chromium-free leather seats
Environmentally Friendly
 
 

 
 
 

 
Risk Factors
Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are based on expectations, forecasts and assumptions by our management and involve a number of risks, uncertainties,
and other factors that could cause actual results to differ materially from those stated, including, without limitation:
 
· Continued decline in market share;
· Continued or increased price competition resulting from industry overcapacity, currency fluctuations or other factors;
· An increase in or acceleration of market shift away from sales of trucks, sport utility vehicles, or other more profitable vehicles, particularly in the United States;
· A significant decline in industry sales, particularly in the United States or Europe, resulting from slowing economic growth, geo-political events or other factors;
· Lower-than-anticipated market acceptance of new or existing products;
· Continued or increased high prices for or reduced availability of fuel;
· Currency or commodity price fluctuations;
· Adverse effects from the bankruptcy or insolvency of, change in ownership or control of, or alliances entered into by a major competitor;
· Economic distress of suppliers that has in the past and may in the future require us to provide financial support or take other measures to ensure supplies of
 components or materials;
· Labor or other constraints on our ability to restructure our business;
· Work stoppages at Ford or supplier facilities or other interruptions of supplies;
· Single-source supply of components or materials;
· Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition;
· Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates, investment returns, and health care cost
 trends);
· The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns or increased warranty costs;
· Increased safety, emissions (e.g., CO2), fuel economy, or other (e.g., pension funding) regulation resulting in higher costs, cash expenditures, and/or sales
 restrictions;
· Unusual or significant litigation or governmental investigations arising out of alleged defects in our products or otherwise;
· A change in our requirements for parts or materials where we have entered into long-term supply arrangements that commit us to purchase minimum or fixed
 quantities of certain parts or materials, or to pay a minimum amount to the seller ("take-or-pay" contracts);
· Adverse effects on our results from a decrease in or cessation of government incentives;
· Adverse effects on our operations resulting from certain geo-political or other events;
· Substantial negative Automotive operating-related cash flows for the near- to medium-term affecting our ability to meet our obligations, invest in our business or
 refinance our debt;
· Substantial levels of Automotive indebtedness adversely affecting our financial condition or preventing us from fulfilling our debt obligations (which may grow
 because we are able to incur substantially more debt, including additional secured debt);
· Inability of Ford Credit to access debt or securitization markets around the world at competitive rates or in sufficient amounts due to additional credit rating
 downgrades, market volatility, market disruption or otherwise;
· Higher-than-expected credit losses;
· Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles;
· Changes in interest rates;
· Collection and servicing problems related to finance receivables and net investment in operating leases;
· Lower-than-anticipated residual values or higher-than-expected return volumes for leased vehicles; and
 New or increased credit, consumer or data protection or other regulations resulting in higher costs and/or additional financing restrictions.
 
We cannot be certain that any expectation, forecast or assumption made by management in preparing forward-looking statements will prove accurate, or that any
projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak only as
of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new
information, future events, or otherwise. For additional discussion of these risks, see "Item 1A. Risk Factors" in our 2006 Form 10-K Report.
SAFE HARBOR