Automotive News World Congress Derrick Kuzak Group Vice President Global Product Development  Ford Motor Company January 2...
Our Plan  <ul><li>Aggressively restructure to operate profitably at the current lower demand and changing model mix  </li>...
How We Plan Global Product Plan Principles <ul><li>Investment at benchmark levels  </li></ul><ul><li>Fully differentiated ...
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 y...
Investment Efficiency Improvement Commonality <ul><li>Part re-use and modular designs </li></ul>Complexity Reduction <ul><...
How We Work   Achieving World Class Efficiency
Product Development Objectives More exciting products, Greater efficiency, Less cost  PD Factory Efficiency Output Input #...
Product Development  Efficiency Improvement Actions <ul><li>Global Product Development System </li></ul><ul><li>First-time...
Global Product Development System – Accelerating Product Development All New Vehicle ( Top Hat + Platform ) New Top Hat Ca...
Improved Virtual Capability <ul><li>Overall prototype spending cut in HALF over 3 year period </li></ul><ul><ul><li>35% fe...
<ul><li>Definition </li></ul>Proposal Top Hat Platform Core Commodities/Subsystems Top Hat Content and  Vehicle Integratio...
Our Product Strategy
Global Ford Brand Product Strategy <ul><li>Bold, emotive exterior designs </li></ul><ul><li>Great to drive </li></ul><ul><...
Design Leadership … What It Takes <ul><li>New design process, focused on target customer and design progressives </li></ul...
Design Leadership: Millimeters Matter
Ford Verve Concept – North America
Ford Verve Concept - China
Ford Verve Concept - Europe
Global Ford Brand Product Strategy <ul><li>Bold, emotive exterior designs </li></ul><ul><li>Great to drive </li></ul><ul><...
“ Infotainment” and Connectivity -  Partnering with the Best
<ul><li>Generally, product cycle times in the automotive industry range 3 to 5 years </li></ul><ul><li>The electronics ind...
The Evolution of SYNC <ul><li>SYNC started with Hands-Free Phone and Media Player capabilities </li></ul><ul><li>Now SYNC ...
The Sony Partnership Sony Branded Audio Unit
<ul><li>Extending the Ford/Sirius relationship beyond media content to provide information and entertainment content throu...
Branding with the Best
Global Ford Brand Product Strategy <ul><li>Bold, emotive exterior designs </li></ul><ul><li>Great to drive </li></ul><ul><...
Showroom Fuel Economy Label Competitiveness 2008 vs 2007 Product Line
Fuel Economy and Performance Competitiveness - Flex % Performance Feel % Fuel Economy Better AWD  Competitor C Flex  3.5L ...
%Performance Feel %Fuel Economy 2009 Escape  2.5L 6spd Auto Competitor A Competitor B Better Fuel Economy and Performance ...
Fuel Economy and Performance Competitiveness - Fusion I4  %Performance Feel %Fuel Economy I4 09 Fusion Auto FWD Competitor...
EcoBoost =  (10-20%) and and Improved Fuel Economy Direct Injection +  +  Reduced Emissions   (7 – 15%) Turbo-Charging Equ...
EcoBoost Torque Comparison 3.5L V-6 EcoBoost 4.6L V-8 Engine Torque Comparison
What’s Different – Ford’s EcoBoost <ul><li>Learned from extensive R&A work and initial Mazda applications </li></ul><ul><l...
EcoBoost Application can be Tailored EcoBoost as a base Engine – Mid-Size Car % Performance Feel %Fuel Economy 2.5L 6spd S...
%Performance Feel % Fuel Economy 4.6L 3.5L EcoBoost Better EcoBoost Can be Tailored EcoBoost as a Premium Engine – MKS
Fuel Economy as a Reason To Buy  Near Term Fuel Economy Improvements  Mid-Size Utility % Fuel Economy 150 LBS Final EPAS, ...
EcoBoost Consumer Perspective EcoBoost I-4 I-4 Diesel I-4 Hybrid Payback of Incremental Purchase Price Through Fuel Econom...
EcoBoost Migration Plan
Thank You
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Mazda Pres Kuzak

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Experience Mazda Zoom Zoom Lifestyle and Culture by Visiting and joining the Official Mazda Community at http://www.MazdaCommunity.org for additional insight into the Zoom Zoom Lifestyle and special offers for Mazda Community Members. If you live in Arizona, check out CardinaleWay Mazda's eCommerce website at http://www.Cardinale-Way-Mazda.com

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Mazda Pres Kuzak

  1. 1. Automotive News World Congress Derrick Kuzak Group Vice President Global Product Development Ford Motor Company January 23, 2008
  2. 2. Our Plan <ul><li>Aggressively restructure to operate profitably at the current lower demand and changing model mix </li></ul><ul><li>Accelerate the development of new products that customers want and prefer and to grow profitably </li></ul><ul><ul><li>How We Plan </li></ul></ul><ul><ul><li>How We Work </li></ul></ul><ul><ul><li>Our Product Strategy </li></ul></ul><ul><li>Finance our plan and improve our balance sheet </li></ul><ul><li>Work together </li></ul>
  3. 3. How We Plan Global Product Plan Principles <ul><li>Investment at benchmark levels </li></ul><ul><li>Fully differentiated Ford-to-Lincoln vehicles </li></ul><ul><li>Ford Brand vehicles shared globally </li></ul><ul><li>Achieve benchmark levels of: </li></ul><ul><ul><li>- Platforms </li></ul></ul><ul><ul><li>- Powertrain architectures and combinations </li></ul></ul><ul><ul><li>- Order guide complexity </li></ul></ul>Reduce investment through simplification and increased efficiency <ul><li>Achieve benchmark cadence of timing and scope of product change </li></ul><ul><li>Achieve benchmark levels of: </li></ul><ul><ul><li>- % of volume new or significantly freshened </li></ul></ul><ul><ul><li>- Average age of portfolio </li></ul></ul><ul><ul><li>- Number of unique showroom nameplates </li></ul></ul>Ensure a customer view of success Principles Goal
  4. 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. 5. Investment Efficiency Improvement Commonality <ul><li>Part re-use and modular designs </li></ul>Complexity Reduction <ul><li>Orderable combinations </li></ul><ul><li>Platform reductions </li></ul>Procurement Efficiencies <ul><li>Low-cost country die sourcing </li></ul><ul><li>Direct tool sourcing with cost models </li></ul><ul><li>On-line quoting for tools </li></ul><ul><li>Direct gage sourcing / Generic gage designs </li></ul>Plant Manufacturing <ul><li>Physical-based costing </li></ul><ul><li>Digital pre-assembly validation </li></ul><ul><li>Flexible automation: body shop, plant facilities </li></ul>
  6. 6. How We Work Achieving World Class Efficiency
  7. 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. 8. Product Development Efficiency Improvement Actions <ul><li>Global Product Development System </li></ul><ul><li>First-time Through Capability </li></ul><ul><li>Improved Virtual Capabilities </li></ul><ul><li>Global Product Development </li></ul><ul><li>Engineering Footprint Migration </li></ul><ul><li>Giving Engineers Time To Engineer </li></ul>
  9. 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. 10. Improved Virtual Capability <ul><li>Overall prototype spending cut in HALF over 3 year period </li></ul><ul><ul><li>35% fewer prototype vehicles (Increased Virtual Capability and Commonality) </li></ul></ul><ul><ul><li>20% less cost per unit (Increased Commonality) </li></ul></ul><ul><ul><li>20% less spending on prototype tooling (Increased Virtual and Commonality) </li></ul></ul>
  11. 11. <ul><li>Definition </li></ul>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 <ul><li>Single Lead </li></ul><ul><li>For each system </li></ul><ul><li>Body </li></ul><ul><li>Chassis </li></ul><ul><li>E/E </li></ul><ul><li>P/T </li></ul>Global Product Development - How We Are Working
  12. 12. Our Product Strategy
  13. 13. Global Ford Brand Product Strategy <ul><li>Bold, emotive exterior designs </li></ul><ul><li>Great to drive </li></ul><ul><li>Great to sit in </li></ul><ul><ul><ul><li>Comfort and convenience of a second home on wheels </li></ul></ul></ul><ul><ul><ul><li>Remarkably quiet </li></ul></ul></ul><ul><li>Fuel Economy as a reason to buy </li></ul><ul><li>Unmistakably a Ford in look, sound, feel </li></ul><ul><li>All with exceptional value </li></ul>
  14. 14. Design Leadership … What It Takes <ul><li>New design process, focused on target customer and design progressives </li></ul><ul><li>Engineering creativity and resolve to deliver winning designs </li></ul><ul><li>Brand aligned, consistent Design DNA </li></ul><ul><li>Exciting designs – “unexpected from Ford” - that bring customers to the showroom </li></ul>
  15. 15. Design Leadership: Millimeters Matter
  16. 16. Ford Verve Concept – North America
  17. 17. Ford Verve Concept - China
  18. 18. Ford Verve Concept - Europe
  19. 19. Global Ford Brand Product Strategy <ul><li>Bold, emotive exterior designs </li></ul><ul><li>Great to drive </li></ul><ul><li>Great to sit in </li></ul><ul><ul><ul><li>Comfort and convenience of a second home on wheels </li></ul></ul></ul><ul><ul><ul><li>Remarkably quiet </li></ul></ul></ul><ul><li>Fuel Economy as a reason to buy </li></ul><ul><li>Unmistakably a Ford in look, sound, feel </li></ul><ul><li>All with exceptional value </li></ul>
  20. 20. “ Infotainment” and Connectivity - Partnering with the Best
  21. 21. <ul><li>Generally, product cycle times in the automotive industry range 3 to 5 years </li></ul><ul><li>The electronics industry evolves more rapidly </li></ul><ul><li>SYNC is a Platform that can bridge these two industries </li></ul><ul><ul><li>Applications can be built on top of the platform </li></ul></ul><ul><ul><li>Faster development of new features enabled through software </li></ul></ul><ul><ul><li>Software also provides upgradeability </li></ul></ul>Microsoft & the Speed of SYNC Automotive Cycle Time Consumer Electronics Cycle Time
  22. 22. The Evolution of SYNC <ul><li>SYNC started with Hands-Free Phone and Media Player capabilities </li></ul><ul><li>Now SYNC 911 Assist and Vehicle Health Report will be available later this year </li></ul><ul><li>Ford will add in-vehicle GPS technology in 2008 to further enhance SYNC services </li></ul><ul><li>SYNC will offer software upgrades through our dealerships </li></ul>
  23. 23. The Sony Partnership Sony Branded Audio Unit
  24. 24. <ul><li>Extending the Ford/Sirius relationship beyond media content to provide information and entertainment content through the Travel Link TM navigation system. </li></ul><ul><li>This includes: </li></ul><ul><ul><li>Real-Time Traffic </li></ul></ul><ul><ul><li>Movie Listings </li></ul></ul><ul><ul><li>Weather </li></ul></ul><ul><ul><li>Sports </li></ul></ul><ul><ul><li>Gas Prices </li></ul></ul>Sirius & The Latest In Satellite Communications
  25. 25. Branding with the Best
  26. 26. Global Ford Brand Product Strategy <ul><li>Bold, emotive exterior designs </li></ul><ul><li>Great to drive </li></ul><ul><li>Great to sit in </li></ul><ul><ul><ul><li>Comfort and convenience of a second home on wheels </li></ul></ul></ul><ul><ul><ul><li>Remarkably quiet </li></ul></ul></ul><ul><li>Fuel Economy as a reason to buy </li></ul><ul><li>Unmistakably a Ford in look, sound, feel </li></ul><ul><li>All with exceptional value </li></ul>
  27. 27. Showroom Fuel Economy Label Competitiveness 2008 vs 2007 Product Line
  28. 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. 29. %Performance Feel %Fuel Economy 2009 Escape 2.5L 6spd Auto Competitor A Competitor B Better Fuel Economy and Performance Competitiveness - Escape I4
  30. 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. 31. EcoBoost = (10-20%) and and Improved Fuel Economy Direct Injection + + Reduced Emissions (7 – 15%) Turbo-Charging Equal or Better Performance Downsizing
  32. 32. EcoBoost Torque Comparison 3.5L V-6 EcoBoost 4.6L V-8 Engine Torque Comparison
  33. 33. What’s Different – Ford’s EcoBoost <ul><li>Learned from extensive R&A work and initial Mazda applications </li></ul><ul><li>Optimized: </li></ul><ul><ul><ul><li>Ports and chamber through extensive CAE for maximum efficiency without compromising performance. </li></ul></ul></ul><ul><ul><ul><li>Combustion system for extended stoichiometric operation and maximized compression ratio. </li></ul></ul></ul><ul><ul><ul><li>Cam events and turbo charger for low speed performance for best powertrain system matching </li></ul></ul></ul>
  34. 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. 35. %Performance Feel % Fuel Economy 4.6L 3.5L EcoBoost Better EcoBoost Can be Tailored EcoBoost as a Premium Engine – MKS
  36. 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. 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. 38. EcoBoost Migration Plan
  39. 39. Thank You
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