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Thread: Hackett Delivers Ford's Vision Before Wall Street

  1. #1
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    Hackett Delivers Ford's Vision Before Wall Street

    Source: AutoVerdict
    October 3, 2017
    by Austin Rutherford


    Brought in just a few months ago upon Mark Field's firing, Jim Hackett showcased the vision of Ford's future today before shareholders.

    After taking the position as CEO, the former Steelcase CEO and Michigan Wolverine AD, embarked on a six month review of the company and to formulate a plan for the path forward.

    This was a response of the company losing focus in recent years under Fields, which also saw Ford's shares on Wall Street fall dramatically. Most blamed Ford's lack of vision on electric and autonomous vehicles.

    So let us jump right in...

    The company will exercise company "fitness" to focus on the company's future in the "now", "near", and "far" at every step. In doing so, they plan on restructuring business operations and reset revenue and costs.

    To reduce costs, they plan on making the company leaner in capital spending, change the industrial model of production, and launch spending reduction incentives. This will also include a reduction on variations per model. For instance, the Ford Escape will drop from 2,302 variations to just 228.

    To save money and be able to react to market forces faster, Ford plans to drop the length of vehicle development time by 20% and reduce model changeover time by 25%. Virtual reality, showcased last week, to design new cars will be one method to speed this processes up.

    Ford also plans on reducing the footprints of plants, likely through more automation, and connect the customer closer to the production process.

    To respond to the need of electric or electrified vehicles in the future, Ford is going to cut investment by around 1/3 into ICE development and push those funds into the aforementioned. Ford anticipates ICE powered vehicles will only make up 1/3 of global sales by 2030.

    In addition to yesterday's announcement on Team Edison, a team within Ford to design and manage BEV development, Ford confirmed that it will expand its BEV lineup beyond 2020 to more than just the previously announced 300 mile range crossover. Ford promises to deliver its electric vehicles at a profit, something it likely does not now.*

    In North America, all vehicles sold by 2019 will be internet equipped with 90 percent globally. This will allow cars to communicate with other cars and on-street equipment in the future.

    To pounce further on the crossover, SUV, and truck market, Ford will shift $7 Billion in investments from car development into those three segments as demand continues to grow.

    Its worth noting, the Ford Bronco, originally slated to arrive in 2019, is now slated for 2018.

    Though Ford profits have been stellar in recent years, Ford and Wall Street are hoping for better returns and company stability in the future. That is what Hackett was brought in for and it is what he has done at other organizations. Ford is hoping for the same in his office at the Glass House.*

    Read full article at AutoVerdict

    [Return to AutoVerdict blog]

  2. #2
    Senior Member Dequindre's Avatar
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    Although there is a lot of this plan to like...

    1. Axing some of the unnecessary sedan models

    2. Faster product launches

    3. Further investment in SUV's, CUV's, and trucks

    ... there is still some concerning pieces.

    1. Throwing a bunch of cash at risky start-up tech firms

    2. Faster product launches COULD, if not done properly, result in some safety or recall debacle

    3. Doesn't seem to pay any special attention to Lincoln

  3. #3
    Senior Member 2b2's Avatar
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    Quote Originally Posted by nsaporito View Post
    I'm a little surprised Ford let this go public. It is a strong indicator the company feels they are not adequately prepared.
    the following was posted elsewhere...I believe from the Fomoco employees' intranet

    Good morning, good afternoon and good evening to my colleagues at Ford Motor Company.

    May 22, 2017, was 135 days ago. And at that time, I committed to you and the shareholders of our company that I would take the time to do a deep dive into what is happening at Ford. It’s becoming clear to me how exciting our collective future is going to be. And you’ll see as you read on that it involves confirmation of our direction today with plans for how we’ll be a better company into the future.

    I am in New York today and about to give an update to investors on our plan and progress. Because pieces of our future will start to come together for these public audiences, I wanted to share the highlights with you first.

    When I accepted this role, I knew that it included the requirement to cast a vision for a winning future and to identify the tools to empower us.

    Bill Ford and I started this journey by gathering the new leadership team together and joining hands to work in concert to script that vision. I worked hard to ensure that we could stare in the mirror at ourselves and candidly and honestly assess our own fitness. I like what I see but I also have a strong sense for what it is going to take for us to win in this very competitive space.

    In addition to the usual competitors, my time in Silicon Valley confirms that many non-traditional competitors are taking aim at our industry. These are tech companies who see the future of our vehicles as “rolling computers” versus the way we’ve historically looked at our business.

    This is known as disruption.

    Disruption is like the thief in the night that one didn’t expect but that can steal your livelihood. The solution to dealing with disruption is fitness. Fitness is a test not only of cost but also of effectiveness.

    When you’re a long-lived company that has had success over multiple decades, the decision to change is not easy – culturally or operationally.

    It was remarkable how this company came out of the recession in 2008, and made record profits in 2015. But we’re already starting our plans for 2018, which means those events are a full decade in our rearview mirror. Everyone we compete with got better in that decade.

    We have to evolve. And today we begin to bend the arc of that evolution.

    First, we have authored a new “winning aspiration” for the business. Yes, you can think of this as a vision or mission statement. It expresses how we will leverage our trusted 114-year legacy, our love and passion for the car business, and our ambition for the future. This is our North Star.

    “Ford Motor Company was built on the belief that freedom of movement drives human progress. It’s a belief that has always fueled our passion to create great cars and trucks. And today, it drives our commitment to become the world’s most trusted mobility company, designing smart vehicles for a smart world that help people move more safely, confidently and freely.”

    This winning aspiration is what you design against, what you infuse into every product and service. Champion it and bring it to life – if it stays as words then it means nothing.

    During the 100-day deep dive, I heard many questions about our direction. I wanted to draft an early list of principles that clarifies at the highest level any ambiguity about our direction. There are five:

    1. Ford will prepare for disruption by becoming fit.

    2. We will be in the vehicle business – moving both people and goods.

    3. Ford’s vehicles will be smart and connected.

    4. These smart vehicles will thrive in a new transportation operating system.

    5. Ford will evolve to capitalize on new business opportunities within this transportation operating system.

    As we move forward with this plan, guided by these principles, a team led by Stuart Rowley is assembling from all over the company to address the fitness redesign effort.

    So, in summary, we are plotting a new direction toward smart vehicles in a smart world. Every “T” isn’t crossed nor “I” dotted because I need your help in making this real, making it better. But I want to end any swirls or conflicts because we are a team focused on making a great future for all.

    For an in-depth summary of our roadmap and plan, you can click here to read what we are presenting to investors, and click here to view the presentation deck.

    Finally, I want to tell you how much I have appreciated the kindness and support of so many as we’ve made this change. Thank you for all you do for Ford Motor Company.

    Jim Hackett

    I have not yet been able to really read thru the ^HOLE^ thing
    but so far it sounds like someone who never took any business classes nor had a job involving co-workers or consumers of any kind.

    I'm thoroughly disgusted

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