Connecting Ford People
Staying strong in a Second Quarter results
challenging environment Fiesta Job 1
We are now nearing the end of the third
08 Cover Story
quarter and focussed on delivering our
Introducing the all-new Fiesta,
profit commitments in a fast-changing Ford Motor Company’s first
and challenging business environment. truly global car
We had an impressive first half but
we are now in a different phase in our
business growth and are starting 08
to see the effects of the economic
uncertainties come through in new car sales. This downturn
is affecting our key markets and year-over-year sales are
starting to dip.
Included with this issue
For the forseeable future we have the considerable
between pages 10 and 11
advantage of our great new products and the benefit of the
efficiencies achieved through all of our hard work in the past.
But we are still in a high-volume, low margin business, and
as the volume disappears it is very difficult to make money 12 Interview
and our break-even point is still too high.
Paul Thomas discusses
Until recently we have been able to rely on increasing revenue all-new Fiesta’s innovative
to improve our profitability but we are now in a period which Marketing campaign
will really test our leadership and teamwork.
We need a laser focus on our cost as a way of working to
offset the revenue loss resulting from our lower sales.
Looking at the trends shaping
the world in which we live
As part of our strategy for facing up to the strengthening
challenges we are managing our expenditure to preserve 1
cash. We have set ourselves a significant cash saving objective Ford Motorsport news round-up
which requires the elimination of all spending that is not
essential to the wellbeing of our business and its future.
ONE Ford helps employees
It will be difficult but we will come through it and emerge deliver business goals globally
stronger as a result. Thank you for your contribution, your
hard work and your commitment. 1 Diversity
Celebrating the success of
the Henry Ford Scholarship
President and CEO, Ford of Europe
Feel the difference
Connecting Ford People
Q2 figures reveal mixed financial results
Ford Motor Company reported a second but, more than ever, we must keep our focus on profit of $50 million, compared with a pre-tax
quarter net loss of $8.7 billion, including special the essentials of our business: product, cost profit of $26 million a year ago.
items (mostly reduced asset values) totalling and delivery.” • Ford earned $103 million from its investment
$8bn. This compares with a net profit of $750 in Mazda in the second quarter, compared
million in the second quarter of 2007. Other Q2 highlights: with $72 million a year ago.
Ford of Europe’s second quarter pre-tax • Ford worldwide automotive operations • Other automotive operations, which consists
profits were $582m, up from $262m a year ago. reported a pre-tax loss of $670m, compared primarily of interest and financing-related
Revenue was $11.5bn, up from $9.2bn. with a pre-tax profit of $378m a year ago. costs, reported a second quarter pre-tax
In total, costs decreased by about $100m. • Ford North America Automotive operations loss of $336 million.
Commenting on these figures, John Fleming, reported a pre-tax loss of $1.3 billion, com- • The Financial Services sector posted a
Ford of Europe’s president and CEO, said: pared with a loss of $270 million a year ago. pre-tax loss of $334 million, compared with
“Our results were outstanding but we have • Ford South America posted a pre-tax a pre-tax profit of $105 million a year ago.
already entered a new phase. There is no doubt profit of $388 million, up from $255 million Ford Credit reported a pre-tax loss of $294
that market pressures, together with continuing a year ago. million, compared with a profit of $112 million
commodity price inflation, will constrain our • Volvo reported a pre-tax loss of $120m, a year ago.
earnings growth in the second half of this year. compared with a loss of $91m a year ago.
We are well positioned to weather the downturn • Ford Asia Pacific Africa reported a pre-tax
Fiesta production begins
Ford’s Cologne plant celebrated the official Job 1 of all-new Fiesta on
August 14. At the ceremony were Dr. Jürgen Rüttgers, Minister-President of
North-Rhine Westphalia, Jim Tetreault, VP, Manufacturing, Ford of Europe,
and Ford of Germany chairman Bernhard Mattes.
As of early 2009 the Fiesta will also be produced at Ford’s plant in Valencia,
Spain. Production facilities outside of Europe will be Nanjing (China), Rayong
(Thailand) and Cuautitlan (Mexico).
Ford to establish
NSC in Romania
Ford of Europe is to establish a dedicated National Sales
Company (NSC) in Romania which will take full responsibility
for the marketing and service of Ford vehicles there from
August 2010. Based in Bucharest, the organisation will be
headed by Vladimir Vosicky, formerly managing director
of Ford in the Czech Republic.
Currently, Ford vehicles and parts are imported and
distributed by local importer Romcar.
The establishment of an NSC in Romania is the next logical
step for the Company following an increase in sales in
recent years and the purchase of the Craiova vehicle
| September 2008
New Ka to star in 007 movie
The Ford Ka is to star in the next James Bond movie,
Quantum of Solace. The Ka, painted a unique metallic gold,
is driven by the film’s beautiful but feisty leading lady, Olga
Kurylenko, who plays Camille, a woman who becomes an
unlikely ally for Bond. In preparation for the scene a team of
three sound engineers spent a day at the acoustic laboratory
at Aachen University recording engine and exhaust noises.
The film opens in the UK and France on October 31, then
across the rest of Europe during November.
Focus named Ford Motor Company
Green Car of the Year accelerates
The Ford Focus 1.6 TDCi Style has been driving quality. Focus topped its category
Ford Motor Company is to significantly accelerate its North
named Green Car of the Year in the UK’s before going on to take the overall prize America transformation plan with the addition of several
What Car? Green Car Awards. The ahead of the seven other category new fuel-efficient small vehicles. It will also realign its North
Awards rate vehicles not only on CO2 winners, including the Fiat 500 and American manufacturing.
output but also other pollutants, running Citroen C5.
costs, safety, security, practicality and In addition to bringing six small vehicles to North America
from its European line-up, Ford is accelerating the
introduction of fuel-efficient EcoBoost and all-new
four-cylinder engines, boosting hybrid production and
converting three existing truck and SUV plants for small
car production, beginning this December.
“We are accelerating the development of the new
products customers want and value,” said Alan Mulally,
president and CEO. “We sell some of the best vehicles in
the world in our profitable European and Asian operations
and we will bring many of them to North America on top
of our already aggressive product plans.”
The first EcoBoost engine applications will arrive in 2009.
EcoBoost uses petrol turbocharged direct-injection
technology for up to 20 % better fuel economy, up to 15 %
fewer CO2 emissions and superior driving performance
versus larger-displacement engines. Ford also plans to
double capacity for North American four-cylinder engines
to more than one million units by 2011.
September 2008 |
Segment shares total Europe Ford market share
January–May 2008 total vehicles by country (+/– 2007)
A - Austria 7.5% (+0.7%)
1. Fiat Panda 15.6% 1. Citroën C4 Picasso 17.9% B - Belgium 7.3% (+0.7%)
2. Fiat 500 (2007) 11.8% 2. Renault Megane 16.0% CH - Switzerland 5.6% (+0.7%)
10. Ford Ka 3.9% 5. Ford C-MAX 9.9% CZ - Czech Republic 7.8% (–1.4%)
D - Germany 7.1% (+0.4%)
DK - Denmark 7.4% (–1.8%)
E - Spain 7.4% (–2.0%)
1. Peugeot 207 13.4% 1. VW Passat 19.2% F - France 5.6% (–0.1%)
2. GM Corsa 11.4% 2. Ford Mondeo 13.4% FIN - Finland 7.2% (–1.1%)
4. Ford Fiesta 9.9% 3. Skoda Octavia 13.1% GB - Great Britain 17.8% (+2.9%)
9. Ford S-MAX 4.5% GR - Greece 6.4% (–1.1%)
H - Hungary 9.7% (–1.4%)
I - Italy 7.4% (–0.5%)
IRL - Ireland 13.1% (–1.7%)
1. GM Meriva 23.3% 1. Ford Galaxy 21.6% N - Norway 10.5% (+1.6%)
2. Renault Modus 14.9% 2. Renault Espace 17.6% NL - Netherlands 7.6% (–0.1%)
4. Ford Fusion 13.4% 3. VW Sharan 10.8% P - Portugal 6.6% (–0.8%)
PL - Poland 7.0% (–0.4%)
S - Sweden 7.0% (+1.0%)
RUS - Russia 5.6% (–0.9%)
1. VW Golf 15.8% 1. Ford Transit 12.2% TR - Turkey 14.0% (–4.0%)
2. Ford Focus 13.4% 2. VW Transporter 10.3%
3. GM Astra 12.6% 3. Fiat Ducato 7.7% TOTAL EUROPE 8.02% (–0.5%)
Mazda to lose weight Andrea Pininfarina dies VW takes wraps
Mazda has announced plans to cut fuel Andrea Pininfarina, chairman and CEO of off new Golf
consumption across its range by 30% by Italian car design firm Pininfarina SpA, has
Volkswagen has revealed the first official
2015. This will be achieved partly through the died in a road accident. Pininfarina, 51,
details of its sixth generation Golf. The Focus
use of direct-injection engines and stop-start who took over as CEO in 2001, was riding
competitor’s basic outline is little changed but
technology but Mazda also hopes to reduce a Vespa scooter which was involved in a
there are substantial revisions to the chassis
the weight of each of its vehicles by at least collision with a car near the northern Italian
and suspension. The company also promises
100kg by moving each model to a new city of Turin.
improved quality with better soundproofing
platform. The new platforms will also allow Pininfarina, 51, was the third generation
and re-shaped door mirrors to reduce engine
engineers to reduce suspension components to run Pininfarina SpA, founded in 1930 by his
and wind noise.
and use thinner materials on door panels and grandfather Battista ‘Pinin’ Farina — who
The engine line-up will include 1.4-litre
the bonnet, as well as using ultra-high-tensile combined his nickname and last name to
petrol and diesel units, plus an economical
steel for the body construction. create the company’s name and new family
three-cylinder 1.2-litre and a 240PS 2.0-litre
TFSI for the GTI. The new Golf will debut at
The Ford Focus Coupé-Cabriolet is
the Paris Motor Show with sales to start in the
currently produced by Pininfarina at its Turin
facility. The company, renowned for its
expertise in producing niche vehicles, was
also responsible for the Streetka.
6 | September 2008
Top 5 markets Top 5 markets
by volume Jan–July 2008 by share Jan–July 2008
Market Volume Market Share
1. UK 16.4 %
1. UK 267 685
2. Turkey 14.6 %
2. Germany 139 520
3. Ireland 13.5 %
3. Italy 126 091
4. Hungary 14.7 %
4. Russia 116 340
5. Spain 9.6 %
5. Spain 93 328
Total industry Europe 2008 YTD
Cars 10 980 911 (+242 813)
Commercials 2 107 542 (+14 377)
While total industry sales in the July, increasing sales by 8.8 % to shows that we have the products to
main 19 European markets were more than 21,000 units, and improv- compete strongly. That strength will
weaker overall in July, compared ing its share to 7.1 %. In the year further increase from October, when
with a year ago, our market share through July, our German team sold our all-new Fiesta goes on sale.
held steady. 139,520 vehicles, 8,230 more than
With consumers focussed on holi- in the same period of 2007. Our colleagues in FCSD are also
days, July is traditionally one of the A government environmental focussed on growth, profitability and
weakest months for vehicle sales. incentive continued to drive sales in customer loyalty. FCSD is a wide-
This year, with the added influence France and we continued to make ranging business with activities
of the general economic slowdown the most of the opportunity, increas- including parts sales and supply,
in some markets, total sales ing both our sales volume (to service engineering operations (pro-
decreased 7.5 % to 1,406,125. 10,870) and share (to 5.6 %) in July. viding, for example, repair methods
In July, we achieved sales of Year-to-date, our sales were up and training to the dealers) and vehi-
117,210 for a share of 8.4 %, the 12.8 %, at 91,795. cle personalisation. Additionally, it is
same as last year. With year-to-date In Italy, we remained the leading focussed on improving customer COMMENT
sales of approximately 940,630, imported brand. satisfaction.
we did better than the 2.4 % overall In Russia, our sales soared In July, sales came in at 106.5 % By Ingvar Sviggum
market decline. almost 26 % to 19,050. For the first versus prior year. The strongest Vice President,
seven months as a whole our sales market in July was Hungary: 135 % Marketing Sales
Adding sales from Turkey and were up some 20,000 units, to versus prior year. and Service
Russia, which continued to be 116,340. Year-to-date sales performance
strong, our July total was 141,170 Among other July increases, our across all business units (VP Pro-
units. Our year-to-date sales in sales in Belgium rose by 10 % to duction Channel, Accessories,
those EU21 markets increased by 3,585, and in the Czech Republic Mechanical and Collision) was
approximately 7,000 units, to we climbed almost 53 % to 1,535. 104.9 % versus prior year. Vehicle
1,143,240, a solid performance. Personalisation Production Channel
Our European Direct Markets Our top selling model in July was fitment achieved significant growth:
were also buoyant in July, increasing Focus, selling over 42,000 units, 36 % versus prior year.
more than 85 % to 8,650. That but the star performers were the The number of vehicles personal-
strong performance took the total Mondeo and the new Kuga. ised through on-line fitment was
for all of our 51 markets to 149,820 Mondeo continued to show its 673,311 or 54 % of all ordered
in July and 1,196,240 year-to-date, appeal with sales rising 12.8 % to vehicles.
an increase of over 23,400. 14,960, while the Kuga clocked up Customer Satisfaction measure-
Britain remained our largest sin- 3,625 in its first month on sale. ment and improvement is a key
gle market in July, boosting sales by Among our commercial vehicles, focus for FCSD. In July, the year-to-
4.3 % to 32,170. Market share was the Transit gained sales of 16,185 date CS Performance scores were:
up almost 3 %, at 17.8 %. Year-to- and the Transit Connect 6,315. 70% for car service and 66% for
date, Britain sold 267,685 units for While the general economic envi- commercial vehicle service.
a market leading share of 16.4 %. ronment continues to be tough in
Germany also moved forward in some key markets, our performance
September 2008 | 7
The all-new Fiesta is one of the most important cars in Ford Motor
Company’s history. When it arrives in European showrooms in the
next few weeks it will open an exciting new era in small car design,
performance and functionality. But, more than that, it will mark the
arrival of the first truly global Ford car
When Ford started to plan its new It is also the first product of Alan
small car, it carried out extensive Mulally’s One Ford vision of a single,
worldwide research, both to understand global company designing and building
customer requirements and to assess cars for a global customer base.
the model’s suitability as a global car Fiesta is the template for the Company’s
project. future generations of global models.
When the report was produced, it On sale in europe from next month in
made interesting reading. It revealed three- and five-door hatchback body
that customer demands and expecta- styles, the model will be introduced in
tions around the world were converging markets across Asia, South Africa,
and thus a significant opportunity Australia and north America by 2010.
existed for a global vehicle. It will be sold in a variety of regionally
Moving forward, a business case was tailored models, all derived from a
established to produce the vehicle but common base car.
it was not one based on a global sales extending the Fiesta’s traditional
figure; Ford did not set one. Instead, it strengths of style, efficiency and value,
took a new approach and decided to the new model will appeal to a new
create a global vehicle development generation of small car buyers through
and manufacturing process that would a mix of kinetic design and latest ‘big
enable it to react quickly to customer car’ technology.
demand. Building on the appeal of the Verve
The process would also ensure that Concept and successful production
quality procedures could be replicated models, like the Mondeo and Focus,
in manufacturing locations around the the Fiesta brings the modern and
world, essential in delivering common, dynamic Ford of europe family look to
high-level production standards. the small car segment. Its bold face
The latest Fiesta is the first product includes Ford’s ‘signature’ lower grille
of that new process, known as GPDS and large oval badge. Chrome and
(Global Product Development System). brightwork accents, wraparound
September 2008 |
headlamps, pronounced wheel arch lips,
a strong bodyside beltline and a sweep-
ing rooﬂine create a dynamic look.
The impact continues on the inside
with high-quality finishes, contemporary
materials and user interfaces inspired by
mobile phones. It all communicates that
the new Fiesta is no ordinary small car.
For the driver there is a ‘cockpit’ feel,
with core controls within easy reach,
including the new In-Car entertainment
(ICe) system in the centre console.
Steering wheel-mounted controls for
key audio and vehicle systems are a ‘big
car’ feature already found on Mondeo,
S-MAX and Galaxy.
The newest Fiesta looks sophisti- generation Fiesta. It also delivers a cation of a knee airbag in a small Ford.
cated inside and out, and its driving noticeable reduction in real world fuel That is complemented by a new front
quality echoes that visual perception. consumption. engineers also refined seatback design to enhance whiplash
While it stands on virtually the same Ford’s electronic Stability Programme protection and a special ‘crash pad’
footprint as the previous model, the (eSP) for all-new Fiesta, which is avai- carpet underlay in the driver’s footwell,
newcomer has lost weight, tipping the lable as an option across the range. which minimises loading to the lower
scales approximately 40 kilogrammes Under the stylish exterior of the car leg during an impact.
lighter, depending on engine choice, there is a robust body structure, crafted Among an array of other features
even after adding 10 kilogrammes in from high-strength and ultra-high normally found only on big cars are
safety features and sound insulation. strength steels, to protect occupants in easyFuel, the option of keyless entry
Depending on the road conditions the event of a collision. and start, automatic heated screens
and the mood of the driver, the model Despite these advances in strength, and cruise control.
offers a combination of sporty and however, the body structure overall The powertrain story is just as strong,
dynamic handling, a smooth cruising is lighter than before. This means with four 16-valve Duratec petrol and
ability and effortless driving in urban advances in safety have not been two Duratorq TDCi diesel engines
environments. achieved at the expense of fuel econo- available, offering a projected range-
A key factor in its light, nimble my and CO2 emissions. wide CO2 average of 132 grams per
handling is a new feature, the first appli- Building on the benefits of a robust kilometre (g/km), a 1.3 % improvement
cation of full electric Power Assist body structure is a range of safety fea- over the previous Fiesta.
Steering (ePAS) on a european Ford. tures. These include the introduction of a Impressive, but for those who want to
ePAS replaces the traditional hydraulic new knee airbag into the car’s Intelligent prioritise lower emissions an eCOnetic
power-assist system of the previous- Protection System (IPS), the first appli- version of the new Fiesta is available.
Rebirth of an icon
Fiesta is not the only Ford small car With a modern appearance based
making the news; the first pictures of around Ford’s ‘kinetic design’ form
the new Ka were released last month, language the new Ka is set to contin-
ahead of the vehicle’s debut at the ue the considerable success of the
Paris Motor Show in early October. original model.
The new model makes its first appear- In total, Ka production has exceeded
ance 12 years after the original Ka was 1.4 million vehicles, and the model has
unveiled, but it has retained its prede- remained tremendously popular
cessor’s fun personality, compact among small-car buyers, inspiring
size, stylish looks and, Ford promises, fierce loyalty from its owners.
its lively driving dynamics. The new model will be built in Poland.
10 | September 2008
100 kilometres (47.9 mpg) and CO2
emissions of 139 g/km. Media drive
The three other 16-valve Duratec pet-
rol engines are a 60 PS and 82 PS 1.25- Watch out for media driving
litre and a 96 PS 1.4-litre with a choice of impressions of the all-new Fiesta
in the coming weeks.
the Durashift 5-speed manual transmis-
sion or Durashift 4-speed automatic. The five-week media drive pro-
gramme for the model started at
Thanks to its improved powertrain
the end of last month and runs
calibration and its reduced weight, the through to the end of September.
new Fiesta achieves overall a 22 %
Motoring and lifestyle writers and
improvement in 0-62 mph acceleration broadcasters from across Europe
and 14 % better in-gear acceleration. will travel to Siena, Italy, to put
Like its predecessors, the appeal of the Fiesta through its paces.
the new Fiesta is further enhanced by Joining them will be motoring
low cost of ownership. Helping owners writers from North America,
Asia-Pacific and Ford’s European
to minimise running costs are improved
Powered by a specially-calibrated ver- fuel consumption across the range,
sion of the 90 PS 1.6-litre Duratorq TDCi, lower repair costs and reduced insur-
combined with coated Diesel Particulate ance premiums.
Filter, the model achieves a class-lead- “All-new Fiesta proves you can make
ing CO2 output of 98 grams per kilome- a small car affordable and reliable, with-
tre. That is matched by impressive out compromising style, quality or fea-
fuel economy, with the car covering tures,” states the model’s chief carline
100 kilometres using just 3.2 litres of engineer Joerg Beyer. “That’s the key to
fuel (equivalent to 76.3 mpg) on the making all-new Fiesta truly desirable.”
eC Combined Cycle. It’s a message that will spread around
Compared with the previous-genera- the world.
tion Fiesta 1.6-litre TDCi, Ford of
europe’s most frugal car ever will use
160 litres less fuel over 20,000km, offer-
ing genuine savings in daily driving.
For petrol enthusiasts, a more power-
ful 1.6-litre Duratec Twin Independent
Variable Cam Timing (Ti-VCT) 120 PS
engine is available. It accelerates the
car from 0 to 100 km/h (0-62 mph) in
9.9 seconds and still returns a com-
bined fuel economy of 5.9 litres per
Fiesta’s 360 degree focus
The marketing campaign for the Fiesta breaks new ground
for Ford of Europe. Paul Thomas, vice president, Marketing,
explains how …
How will the new Fiesta be marketed? es before actually buying, this is a very important media
The important thing when we take the new Fiesta to market is channel within our overall Fiesta launch plans.
to recognise the very diverse customer groups we have across As I’ve said, increasing sales to younger customers is one
europe. We have our existing customers, male and female, of our targets – these customers are very style conscious.
who span a very wide age range. In addition, with this car in We know from our market research that customers view the
particular, we are targeting a younger audience, again both new Fiesta as the style leader in the small car segment. We are
male and female. Different customers access different media. using a wide spread of digital media to ensure our message
Younger customers, for example, are far more likely to use the reaches these potential customers since so many of them
web, while existing customers may be looking at Press and TV. do not read motoring magazines or even the motoring pages
So it is important in our communications that we implement a in national newspapers. We need to have a presence in the
full 360 degree campaign, from TV to Press, internet and new places where these customers obtain their information, such
media, direct mail, outdoor, radio and, of course, brochures. as mobile phones, the web, blogs, etc. We will have a very
Paul Thomas First and foremost, we are targeting our existing customer professional and tailored presence in those media and I am
believes new media base, loyal Fiesta customers across the market who’ve driven confident our message will get out to these customers, as well
is vital for attracting
style conscious, the current vehicle. We expect them to be really excited about as to our wider customer base.
younger custom- this new car. Secondly, we are targeting customers who don’t
ers. Blogs, mobile
buy a Ford today, who buy competitors’ products. We know in Europe is a collection of different markets and cultures,
networking sites the B-Class market style is absolutely key, and with the what challenges does that bring when developing
such as facebook new Fiesta we know we have the undisputed style leader a pan-European campaign?
are all important
channels in the segment. When we’re developing a car we look at the highest volume
markets for the vehicle, so for Fiesta that is UK, Italy, Germany,
You have mentioned the influence of new media, France and Spain. We have a focus on those markets, although
how are you making the most of that opportunity? we work with all our markets across europe to make sure we
This area of communications is moving faster than meet their requirements as best we can. While the various
any other. So, to ensure we optimise our Fiesta communica- countries across europe are different, the car markets are
tions we have worked closely with both our own team and our actually more similar than people might imagine.
agency partners to tap into the best expertise available today. We have developed a pan-european marketing campaign
The pre-sales website that went live coincident with the for Fiesta that will be consistent across europe. each of our
opening of the British International Motor Show in July is a national Sales Companies has selected the mix of communi-
good example of this cooperation. It is specifically targeted at cations material and media channels that will work best for
people who access web-based information and media. In them. The challenge for us has been to develop the best suite
addition, we launched the “Love Factory” concept in July – this of communication assets available. By developing the material
too is targeted at a very different customer and transmitted centrally we minimise the cost spent developing communica-
through digital communications, like the web and sites such as tions material, thereby allowing more of our available budget to
YouTube. That helps to spread the word about the launch of be spent on placing customer-facing media in the markets.
the new Fiesta. Of course, we have other launch communica-
tions planned to support the launch in October using the more Global research reveals a trend for increasing vehicle
established communication channels. customisation, how are you responding to that?
To achieve our aggressive sales and profit targets on the Working with our colleagues in FCSD and Design we have
new Fiesta we must retain our existing owners and conquest a series of Individual packs across all our carlines and through
new customers who are currently driving competitive vehicles. this production channel we are able to offer our customers
Since more and more customers are using the internet to the opportunity to customise their vehicles. In addition, we
obtain product and price information about potential purchas- have recently appointed an Individual Brand Manager within
12 | September 2008
Marketing – this role will be key in working with the various Is the Feel the difference strategy meeting its objectives?
areas of Marketing and the national Sales Companies to We started the Feel the difference strategy in europe in
maximise our sales opportunities on Individual products. early 2006. It has been a focus for all that we do, not just in
At the British International Motor Show in July we showed communications but in Design, Product Development,
Individual versions of a number of vehicles, including the new Business Strategy and certainly in our Sales and Marketing.
Fiesta. It is not just about the vehicles we have launched over the
last two-and-a-half years, it includes all the products we are
Another trend is for sustainable motoring. developing for introduction beyond 2008.
Again, how is Ford responding to that? In addition to the style and substance of our new vehicles,
Our response has been to introduce our eCOnetic range of we are also focussing on the Ford brand image in europe and
vehicles. These are currently available on Focus and Mondeo, that’s a key element of our Feel the difference strategy.
with Fiesta planned for introduction later this year. The Fiesta We know that two key factors inﬂuence customers to make
eCOnetic produces a class leading 98 grams of CO2 per kilo- that all important first visit to the Dealership to buy a new
metre, which is equivalent to 76.3 mpg (3.2 litres per 100 kms). vehicle – they are Product and Brand. Is it a product I like and
That is the lowest fuel economy of any family vehicle available is it a brand I am prepared to drive? We have seen the brand
on the market today. So we are responding with affordable, metrics, which measure the likeability of the Ford Brand,
cost effective solutions that work for our customers. starting to improve. But we cannot rest on our laurels, so we
In addition, we have embarked on specific advertising for our have embarked on a study to ascertain exactly where we want
eCOnetic models. We have developed a suite of communica- to take the Ford brand in europe and, importantly, how we are
tions that our markets can use to promote these vehicles going to get it there. Feel the difference is a long-term strategy
because we really do have a great story to tell. that is here to stay!
Interview by Peter Noble
design features and
also help to inﬂuence
the brand image
September 2008 | 13
Global demographic trends
More people – The world population is expected to grow from
6.5 billion to 9 billion by 2050. Remarkably, India and China
currently account for one third of the 76 million people added
to the world population each year.
Aging population – Global aging is regarded as one of
The world is constantly changing. Human beings the biggest challenges facing the world today. no other issue
are growing in number, height and waist size. is predicted to have as profound an effect on living standards,
the global economy and world order. To put this into context,
We are also becoming more demanding, historically populations have a pyramid-shaped age
better informed and more focussed on distribution, with more young than old. However, as a result of
environmental issues. an aging population and declining fertility, the old (50+) will
soon outnumber the young, causing the pyramid to invert.
As life expectancy rises, it raises serious questions about
In this fast moving world, it is essential for the financial viability of pensions and provision of health-care
companies like Ford to keep pace with a myriad of systems for the elderly. In Japan, for instance, one in seven
crimes last year was committed by someone over the age of
demographic and consumer trends. These trends 65. experts blame this on a lack of financial provision and job
affect every aspect of the business, from Design to opportunities for the older generation.
Communications, HR to Marketing. Unlike fads, Declining fertility – In 1950, the global rate of children
per woman was five, however by 2050 this is predicted to fall
which come and go quickly, trends are established below replacement level at 2.05 children per woman.
over time. They evolve as a result of demographic The main reasons for this are delayed marriage and parent-
changes, collect momentum and continue evolving. hood, declining rates of fertility, more singles and conscious
decisions by couples to have fewer or no children. This trend
Ford researches these trends continuously. Here are is very pronounced in developed countries, however there
some of the key findings … are some Asian, African and Middle eastern countries with
spiralling birth rates and younger populations.
1 | September 2008
Urbanisation – For the first time in history, the majority of the today have more opportunities than ever in terms of education,
world will soon no longer be rural dwellers but urban dwellers. employment and social identity. This leads to women becom-
We will also see the emergence of more very large cities, ing an increasingly powerful and inﬂuential consumer group.
or mega cities, with populations of ten million or more. In Asia Increasing migration and ethnic diversity – The more
alone, four more mega cities are expected to bring the developed regions are expected to continue being net
worldwide total to 23 by 2015. receivers of international migrants, with an average gain of
Rising power of women – In the 20th century, there was about two million per year. With fewer young people, the
significant progress in women’s equality and this progress immigrant population is helping countries to fill jobs and
is now expected to accelerate and spread further. Women maintain the natural balance of the economy.
Established consumer trends
Sustainability and ethical consumption – Concerns over
health, social and environmental issues are having an ever
greater inﬂuence on consumer behaviour. Many of these
changes are driven by the rapid introduction of government
taxes and penalties, as well as by an increased media focus.
A study by US market research company Harris Interactive
revealed that 33 % of college students are driven towards
brands that are seen as environmentally or socially
even supermarkets are affected. Tesco, which produces
two million tonnes of carbon a year in the UK, is planning to put
labels on every one of its 70,000 products so that shoppers
can compare carbon costs in the same way as comparing salt
and calorie contents.
September 2008 | 1
This trend toward sustainability and ethical consumption is
much more pronounced in developed countries. In less
developed regions simple economics still play a far more
Changing physiology – People are getting taller and creating the world’s first global community, where word of
heavier, with no sign of a slowdown in the rate of obesity. mouth is king and consuming information through such
This is the result of a combination of natural and man-made technology is becoming a way of life. Young people also have
causes. In most developed countries up to 50 % of the an increasing inﬂuence on the buying decisions of older
population is now classified as overweight or clinically obese. people.
Globally, more than 700 million adults are projected to be In a worldwide study, 50 % of all 8–14 year-olds said they
obese by 2015, compared with 400 million in 2005. would rather throw out their TV than be without the internet.
Make it mine customisation – Consumers are developing
an ever stronger desire to express themselves through the
products they choose. They are less likely to compromise Emerging consumer trends
and no longer want what everyone else has. They want limited Changing definition of luxury – Luxury is fragmenting into
editions, one-off products and bespoke items. Companies affordable and super luxury. Many products traditionally
investing in personalised products are experiencing greater regarded as luxury or premium have become mainstream
customer loyalty and the ability to command premium prices. and attainable. Luxury – particularly in developed markets –
In the US, Arizona-based Cold Stone Creamery grew is now becoming more about life experiences, rather than
five times faster than Baskin Robbins last year by inviting displays of material wealth.
customers to blend their ice cream with their own choice of The super rich are finding new ways to differentiate
mix-ins. themselves, with a greater propensity towards excessive
Youth inﬂuence – With the growth of the internet, young displays of wealth, such as private yachts, a ﬂeet of personal
people around the world are connected like never before, jets and exclusive access to clubs and events. notably, free
sharing information and setting the tone for consumers of all time is now emerging as the greatest luxury for many people.
ages. eventually, global youth will share more in common with The simple life – Conversely, as life gets more hectic,
each other than with older generations in their own countries. the desire to get back to simple, basic pleasures is growing.
Strong economies and greater wealth has led to young People are overloaded with choice and information, leaving
people (25 years-old and under) emerging as a powerful many striving for what is known as ‘simplexity’.
consumer group with considerable spending power. They From a business viewpoint, many companies are now
are driven by a culture of ‘instant gratification’ and are unlikely realising that too much choice can be confusing – the trick is
to compromise on what they want. to deliver variety but still keep it simple for consumers.
The massive growth in social networking websites is Richard Noble
16 | September 2008
Ford struggles in Rallye Deutschland
BP Ford Abu Dhabi World Rally Team endured a difficult Record breaking Focus entry in Germany
weekend in last month’s Rallye Deutschland. Mikko Hirvonen and A record 13 Focus RS World Rally cars competed in Rallye Deut-
Jarmo Lehtinen were fourth in their Ford Focus RS World Rally schland. Along with the three crews from the BP Ford Abu Dhabi
Car while team-mates Jari-Matti Latvala and Miikka Anttila World Rally Team and four from Stobart VK M-Sport Ford were
finished ninth on this second asphalt event of the season. five crews from Holland and the ’06 specification Focus of
Hirvonen ran as a high as second before a puncture dropped Norwegian Andreas Mikkelsen.
him down the leaderboard. Latvala rolled his Focus on day two
and also suffered puncture problems. Hirvonen – title fight could go to the wire
Citroën’s Sébastien Loeb won to move into a four-point lead in BP Ford Abu Dhabi ace Mikko Hirvonen believes the race for the
the Drivers’ championship. The result means Citroën has an eight World Drivers’ Championship will go right to the wire.
point advantage in the Manufacturers’ series. The 27 year-old Finn is expecting Citroën’s Sébastien Loeb to
pile on the pressure in the second half of the season but believes
’08 Focus RS WRC has more style and power he can stop him from clinching a fifth consecutive Drivers’ crown.
The 2008 version of the record-breaking Focus RS World Rally “I think the tarmac Mediterranean events will be crucial,” Hirvo-
Car made its debut in last month’s Rallye Deutschland. At the nen said. “It’s important we don’t let Sébastien, Dani Sordo and
front, the car now reflects the eye-catching look of the recently- Citroën have too much success on tarmac. If I can score well on
previewed Focus RS road car. Mechanical changes focus on a these events I think I’ll have an excellent chance of the title but it’s
new turbocharger and crankshaft, which increase the range of going to be tough for sure.”
Model T and
Capri star at Le Mans
Two unique and specially-restored front of 81,000 spectators, it finished
Ford race cars returned 49th out of 63 entrants.
to the famous Le Mans 24 Hours circuit The Capri RS2600, with its V6
this summer for the 2008 Le Mans engine developing almost 400 PS,
Classic. The two cars, a 1923 Model T was a major player in touring car
Montier and a 1973 Ford Capri races in the early 1970s. It originally
RS2600, took to the track to compete competed in the event in 1974 but
under the ‘ecurie Ford France’ banner. failed to finish. It ended the Classic in
The Model T, which took part in the 17th position but, crucially, won the
very first Le Mans 24 Hour race in Index of Performance (similar to a
1923, is the oldest car ever to have handicap system in golf), illustrating
taken part in the prestigious Le Mans the outstanding performance of its
Classic. After a heroic performance in V6 engine.
ONE Ford drives Russian revolution
“The success was using the CCAT process as
the enabler to deliver above-typical results,”
said Lisa Tresigne-King, director, Global Raw
Materials and Stampings. “We took advantage
of the CCAT process and its collaborative style
to provide a work environment that allowed us
to focus, share objectives and drive to deliver,”
Best of all, the targeted cost savings
will be realised by year’s end.
In Europe, a cross-functional group of Information
Technology, Material Planning Logistics and
Accounting staffers formed a rapid response
team to reduce the costs for exporting vehicles
Rather than having such vehicles as the
Ford Fiesta, Fusion, Focus, Mondeo and S-MAX
shipped through Finland and Poland, and cleared
by Russian customs in Moscow, the Ford of
Europe team developed the process to clear
as many as 70,000 vehicles a year through the
The European cross-functional team
behind the “Kaliningrad” project Russian seaport enclave of Kaliningrad, located
consisted of Nik Benford, Bert Bong (left), Ford Motor Company employees are delivering between Poland and Lithuania on the Baltic Sea.
Chris Caulfield, Tom Davies, Mick Flynn,
Bob Gregory (right), Peter Linnemann, business results globally using the principles Using Kaliningrad as the entry to Russia
Gavin Mills, Natalia Petrenko, Udo Ries, and behaviors of ONE Ford – and finding new reduces customs’ duties, taxes, truck usage and
Dirk Theissen and Laura Wetzel opportunities to integrate ONE Ford into the courier charges and speeds up payments, said
corporate culture. team member Nik Benford, who works in IT in
In North America, members of the body Warley, England.
structures product development department and The team was led by Tom Davies, supervisor,
the stamping and steel purchasing section had a European Vehicle Accounting Systems and Bob
target to save $115.5 million in expenses for 2008. Gregory, supervisor, Vehicle Scheduling and
To help realise that goal they formed a Cross- Distribution, who worked with Dr. Bert Bong,
Commodity Attack Team (CCAT) to reduce costs manager, Vehicle Logistics Europe and Mick
Introduced in January, ONE Ford and streamline the process from the time a com- Flynn’s Accounting Business development team.
balances “One Team, One Plan, ponent is designed to the time it’s manufactured. Set up in May of this year, the team completed
One Goal” and the Ford Expected The CCAT process allowed for co-location of the research, documentation and the change by
Behaviors necessary to achieve a team comprised of more than 100 members August. Benford said the project was challenging
the Company’s plan. For more from Manufacturing, Purchasing, Product Devel- but rewarding. “It required people to be creative
information, please visit opment, Lean Manufacturing and Cost Estimat- and work outside normal boundaries. Special
www.one.ford.com. ing. Together, the team worked on 15 separate credit should go to the team who worked on it
work streams to find cost savings opportunities. and stepped up to make it happen,” he said.
These stories represent two of the “Communication was so much easier and The change cost approximately $100,000 to
many examples of employees using issues were resolved more quickly. The real implement but will save the company approxi-
ONE Ford to deliver the business benefit is that a centralised location made it mately $7 million a year.
plan. To share a story, please simpler to make plans and provide the information The programme will also be expanded to han-
e-mail: firstname.lastname@example.org. to management for quick decisions,” said dle exports of the Ford Transit van, said Benford.
Tam Cam, finance supervisor, North American
Cost Estimating. Jessica Thiringer
Executive editor: Emmanuel Lubrani, email@example.com | Copy editor: Richard Noble, r firstname.lastname@example.org | Design: Manfred Müller, email@example.com,
Annette Vellay, Alexander Bertrams | Production: Zetweka, Print Production Management, Cologne | Digital Reproduction: purpur, Cologne |
Print: Neef Stumme, Wittingen | Published by Ford of Europe, Communications and Public Affairs
18 | September 2008
Supporting female engineers
of the future
Each year the Henry Ford Scholarship Programme gives a select group of female
engineering students an invaluable insight into life at Ford. Run by Ford of Germany,
in association with the University of Aachen, the scholarship programme also
offers financial support and mentoring to the young women
Class of 2008:
meet the all-new
Fiesta during the
Day in Cologne
Around 25 female Bachelors or Masters mechanical degree a closer look at the Company and get to know some of the
students hold Henry Ford scholarships at any one time. To qualify different areas. This year the students spent the day in the
for the programme the women need to be enrolled in a mechani- Manufacturing Business Office (MBO) and the Tool Shop.
cal engineering degree at the University of Aachen, have above They also got to meet the two newest members of the Ford
average academic achievements and be involved in activities family – the Fiesta and Kuga.
beyond their university education. In the evening the scholarship holders were invited to a
Each student receives a monthly grant. In addition to this Management Get Together hosted by Jim Tetreault, vice
financial support the young women participate in a comprehen- president, Manufacturing, Ford of Europe. The evening
sive programme that includes team building weekends and was an opportunity to celebrate the ongoing success of the
soft and hard skill training courses such as time management, programme – five graduates now working for Ford gave a short
presentations, project management and computer skills. Seven presentation – as well as to explain the programme to a group
Ford engineers act as mentors to the students, supporting them of around 30 Ford managers.
in a wide variety of ways. Furthermore, each student spends at “The scholarship programme is a fantastic way to bring the
least one day per year shadowing a Ford engineer at work and female engineering talents of the future into Ford,” explained
12-14 per year do internships at Ford. Mechthild Cremer, part of the HR team behind the programme.
Once a year the students are invited to attend a Career Day at “They get to see the inner workings of the Company, experience
Ford’s Cologne facility. The day is an opportunity for them to take how we work and, most importantly, get to know the people.
It is an invaluable experience for them and for us.”
September 2008 | 1