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Mazda Pres Kuzak

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Automotive News World Congress Derrick Kuzak Group Vice President Global Product Development Ford Motor Company January 23, 2008
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
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
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
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
How We Work Achieving World Class Efficiency
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
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
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
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)
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
Our Product Strategy
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
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
Ford Verve Concept North America
Ford Verve Concept - China
Ford Verve Concept - Europe
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
Infotainment and Connectivity - Partnering with the Best
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
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
The Sony Partnership Sony Branded Audio Unit
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
Branding with the Best
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
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 6spd Auto AWD AWD Competitor B AWD Competitor A Flex 3.5L 6spd Auto FWD
%Performance Feel %Fuel Economy 2009 Escape 2.5L 6spd Auto Competitor A Competitor B Better Fuel Economy and Performance Competitiveness - Escape I4
Fuel Economy and Performance Competitiveness - Fusion I4 %Performance Feel %Fuel Economy I4 09 Fusion Auto FWD Competitor B Competitor C Competitor A Better
EcoBoost = (10-20%) and and Improved Fuel Economy Direct Injection + + Reduced Emissions (7 15%) Turbo-Charging Equal or Better Performance Downsizing
EcoBoost Torque Comparison 3.5L V-6 EcoBoost 4.6L V-8 Engine Torque Comparison
Whats Different Fords 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
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
%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, BMS, Fast Engine Warm-up, ADFSO, N/V opt Downsized PT with EcoBoost Technology 5 to 6 speed +ASC Aero and Parasitic Improvements
EcoBoost Consumer Perspective EcoBoost I-4 I-4 Diesel I-4 Hybrid Payback of Incremental Purchase Price Through Fuel Economy Savings Lower Is Better
EcoBoost Migration Plan
Thank You

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Mazda Pres Kuzak

  • 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
  • 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
  • 16. Ford Verve Concept North America
  • 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
  • 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. Whats Different Fords 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