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Pres Kuzak

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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 Plan Global Product Plan Principles
    • Investment at benchmark levels
    • Fully differentiated Ford-to-Lincoln vehicles
    • Ford Brand vehicles shared globally
    • Achieve benchmark levels of:
      • - Platforms
      • - Powertrain architectures and combinations
      • - Order guide complexity
    Reduce investment through simplification and increased efficiency
    • Achieve benchmark cadence of timing and scope of product change
    • Achieve benchmark levels of:
      • - % of volume new or significantly freshened
      • - Average age of portfolio
      • - Number of unique showroom nameplates
    Ensure a customer view of success Principles Goal
  • 4. Average Age of Portfolio (Years) 2006 2007 2008 2009 2010 2011 Memo: Competitor A 3.1 – 4.2 yrs, Competitor B 3.9 - 4.8 yrs 35% Improvement Ford Lincoln
  • 5. Investment Efficiency 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
  • 6. How We Work Achieving World Class Efficiency
  • 7. Product Development Objectives More exciting products, Greater efficiency, Less cost PD Factory Efficiency Output Input # Programs Engineering Costs = = # Of programs weighted by market impact # Of programs weighted by market impact Engineering costs Engineering costs
  • 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 All New Vehicle ( Top Hat + Platform ) New Top Hat Calendar Year 2008+ 2006 2004 27% faster 19% faster Base 49% faster 24% faster Base
  • 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.
    • Definition
    Proposal Top Hat Platform Core Commodities/Subsystems 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
  • 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.
    • 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
    Microsoft & the Speed of SYNC 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. The Sony Partnership Sony Branded Audio Unit
  • 24.
    • Extending the Ford/Sirius relationship beyond media content to provide information and entertainment content through the Travel Link TM navigation system.
    • This includes:
      • Real-Time Traffic
      • Movie Listings
      • Weather
      • Sports
      • Gas Prices
    Sirius & The Latest In Satellite Communications
  • 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 Competitiveness 2008 vs 2007 Product Line
  • 28. Fuel Economy and Performance Competitiveness - Flex % Performance Feel % Fuel Economy Better AWD Competitor C Flex 3.5L 6spd Auto AWD AWD Competitor B AWD Competitor A Flex 3.5L 6spd Auto FWD
  • 29. %Performance Feel %Fuel Economy 2009 Escape 2.5L 6spd Auto Competitor A Competitor B Better Fuel Economy and Performance Competitiveness - Escape I4
  • 30. Fuel Economy and Performance Competitiveness - Fusion I4 %Performance Feel %Fuel Economy I4 09 Fusion Auto FWD Competitor B Competitor C Competitor A Better
  • 31. EcoBoost = (10-20%) and and Improved Fuel Economy Direct Injection + + Reduced Emissions (7 – 15%) Turbo-Charging Equal or Better Performance Downsizing
  • 32. EcoBoost Torque Comparison 3.5L V-6 EcoBoost 4.6L V-8 Engine Torque Comparison
  • 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. EcoBoost Application can be Tailored EcoBoost as a base Engine – Mid-Size Car % Performance Feel %Fuel Economy 2.5L 6spd Small I4 EcoBoost Powershift Better
  • 35. %Performance Feel % Fuel Economy 4.6L 3.5L EcoBoost Better EcoBoost Can be Tailored EcoBoost as a Premium Engine – MKS
  • 36. Fuel Economy as a Reason To Buy Near Term Fuel Economy Improvements Mid-Size Utility % Fuel Economy 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 Parasitic Improvements
  • 37. EcoBoost Consumer Perspective EcoBoost I-4 I-4 Diesel I-4 Hybrid Payback of Incremental Purchase Price Through Fuel Economy Savings Lower Is Better
  • 38. EcoBoost Migration Plan
  • 39. Thank You