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    Connecting Ford People

    November 2008

    ONE Ford for a changing world

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    Feel the difference

    08

    04

    12

    14

    16

    04 Upfront

    Executive changes

    CLAD Awards 2008

    Industry News

    08 Cover Story@Ford talks to Alan Mulally,

    Ford Motor Company president

    and CEO, about ONE Ford

    John FlemingExecutive vice president andchairman and CEO, Ford of Europe

    Ford News

    Included with this issuebetween pages 10 and 11

    This is a year of two dramatically different

    halves. We had a tremendous first half,with record sales and impressive income,

    but the global economic uncertainty is

    now impacting business and consumer

    confidence and driving vehicle sales lower

    in many key markets.

    In the first quarter, the industry was

    forecasting a full year market of over

    18 million vehicles. In the last quarter, the

    expectation is for 15.5 million units, or less. That is 2.5 million

    vehicles that the industry had geared up to produce, but which

    will not now be needed. The inevitable result as we are now

    seeing, is a scaling back of output to match the reduced demand.But while industry-wide sales across the main European markets

    are declining (down almost 9% in September), our market share is

    holding up. That is because of the strength of our range of products

    and its appeal to the hearts and minds of buyers.

    We will work hard to maintain that strength. Indeed, looking

    ahead, it is clear that small, economical cars will be in demand

    more and more, so our timing could not be better in having two

    outstanding new models, Fiesta and Ka, coming to the market

    at this time.

    We are also benefitting now from having taken difficult actions in

    the past to make our business leaner and more efficient. However,

    our financial break-even point is still too high, so there is more work

    to be done. But we are in a much stronger position today as a result

    of those past actions.

    Tough times call for tough decisions and the leadership team is

    prepared to do what it takes to safeguard our business and the

    continued flow of successful new products.

    As part of that commitment, our laser focus on cost cutting and

    income conservation will intensify as we respond to the difficult

    market situation in which we find ourselves at the moment and

    adjust so that our capacity matches our demand. But as we

    respond effectively to the challenges of today, we will also keep

    our focus on preserving our future.

    The intense focus on Ford of Europes business performance

    and future will continue following the announcement recently ofmy appointment as chairman and CEO, Ford of Europe, together

    with having responsibility for Volvo. My job title may be different and

    my day-to-day role may have changed in some regards but what

    remains the same is my passion to ensure all of us stay focused on

    our core business objectives.

    Thank you for your hard work. As a committed team working

    together we will emerge stronger from this challenging period.

    Focused on todayand tomorrow

    November 2008

    Connecting Ford People

    12 Feature

    New Ka expresses its individuality

    with three personalisation packs

    14 Feature

    The new Focus RS makes torque

    steer a thing of the past

    15 Sport

    A round-up of all the latest

    Ford motorsport news

    16 Feature

    European dealers get to

    grips with the all-new Fiesta

    18 Feature

    Outstanding teamwork brings

    new Fiesta to the market with

    the highest quality

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    Upfront

    4 | November 2008

    New roles for Fleming and Booth

    Fiesta is COTY finalistThe all-new Fiesta is one of seven

    finalists in the Car of the Year 2009.

    The 59 members of the COTY jury

    considered some 37 models before

    selecting the final seven.

    The other finalists are the Alfa Romeo

    MiTo, Citron C5, Opel/Vauxhall

    Insignia, Renault Mgane, Skoda

    Superb and Volkswagen Golf.

    For the final vote jury members

    have to apportion 25 points among

    at least five of the cars, providing

    a written justification of their choice.

    The result will be announced on

    17 November.

    CLADAwards 2008Ford of Europes vice president of Purchasing,

    Birgit Behrendt, and vice president of Human

    Resources, Nick Caton, were in Cologne

    recently to present the 8th annual Chairmans

    Leadership Awards for Diversity (CLAD).

    The awards recognise individuals at all levels

    within the Company whose actions have made

    a difference. They are based on the principle

    that everyone can be a leader in diversity,

    irrespective of their formal role within the

    Company.

    Eighty nominations were received reflecting

    a broad range of employee involvement within

    the business.

    The awards are presented in five categories

    Leading the Way, Valuing a Diverse Workforce,

    Building a Respectful and Inclusive Environ-

    Nick Caton andBirgit Behrendtwith pupils fromthe Rainbow Nationwho have estab-lished links withan orphanage inSouth Africa, aswell as with schoolsin New Zealandand Cuba. Theyalso carry out

    charitable workand collections

    ment, Worklife Flexibility, and Developing Exter-

    nal Partnerships. Each nomination is evaluated

    and considered on its individual merits.

    Among the highlights of the event were a

    recital by the Ford String Quartet, a presentation

    by five pupils from the Rainbow Nation a diver-

    sity initiative by a UK-based school inspired by

    the life and work of Nelson Mandela and in the

    afternoon a Design presentation by Ford of

    Europes chief designer, Stefan Lamm.

    Behrendt commented: Nelson Mandela

    said education is the most powerful weapon

    you can use to change the world and the pupils

    from the Rainbow Nation are an example of how

    effectively this can be achieved with diversity.

    For more on CLAD 2008 see the December

    Diversity@Ford magazine, due out on

    10 December.

    Lewis Booth is appointed

    executive vice president and

    chief financial officer, Ford

    Motor Company, replacing

    Don Leclair, who retired on

    1 November.

    Lewis Booth, 59, has held senior

    positions in Europe, Asia and

    North America. Leclair, 56,

    was named executive vice

    president and chief financial

    officer in August 2003.

    He joined Ford in 1976.

    John Fleming has been appoint-

    ed executive vice president

    and chairman and chief executive

    officer, Ford of Europe, succeed-

    ing Lewis Booth. In his new role,

    Fleming has responsibility for

    Ford of Europe, Volvo Car Corpo-

    ration and Fords Export Opera-

    tions & Global Growth Initiatives.

    Fleming, 57, was named group

    vice president and president and

    CEO, Ford of Europe, in 2005.

    He joined Fords manufacturing

    operations in the UK in 1967.

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    Maltese dealer celebrates80-year Ford linkGasan Enterprises has been Fords franchisee

    in Malta for 80 years. To celebrate that eight-

    decade relationship Gasan recently staged anumber of anniversary events.

    The highlight was a time tunnel display

    staged in the main hall of the Mediterranean

    Conference Centre in Valletta. The multimedia

    display included a number of vehicles and

    other memorabilia from five eras: the Twenties

    and Thirties; the Fourties and Fifties; the Sixties

    and Seventies; the Eighties and Nineties; and

    2000 and beyond. The display included

    newspapers from the various eras announcing

    major national and international events,Gasan historical milestones and photographs,

    large plasma screens showing period footage

    and models dressed in costumes of the era.

    The celebrations were linked with the

    staging in Malta of the Ford of Europe Europe-

    an Direct Markets annual regional conference.

    The event was attended by Maltas prime

    minister, Lawrence Gonzi.

    Ford renewsGE fleet deal

    Ford of Europe has renewed an International

    fleet deal with one of the worlds largest finan-cial services and industrial groups General

    Electric. GE employs some 315,000 people

    worldwide and has a European fleet of

    12,000 vehicles.

    Ford has supplied vehicles to GE since 2000

    but this latest deal, which covers 21 European

    markets, means that over the next two years a

    minimum of 70% of GEs fleet purchases will

    be from Ford Motor Company. This equates to

    a minimum of 2,600 vehicles per year, 1,800 of

    which will be Ford Blue Oval, with the remain-

    der coming from Volvo and Mazda. GE havealso agreed to purchase around 640 units from

    Ford over the next 12 months in the US.

    I am delighted that, after an intense tender

    process that began in May 2008, we have

    successful ly renewed the European GE fleet

    deal, said Miles Maiklem, Ford Pan-European

    B2B Operations Manager. The customer deci-

    sion making process was especially protracted

    this time due to fiercely competitive offers from

    other major manufacturers. However, the eight-

    year relationship, our excellent product range

    and the strong co-operation between the

    European Fleet Team and the National Sales

    Companies swayed the deal in our favour.

    Ford offers GE a unique level of service,

    including a dedicated European Implementa-

    tion Manager who provides regular product

    and marketing communications and has

    organised more than 150 meetings and events

    in 21 European markets in the past three years,

    all of which has helped to cement the relation-

    ship between the GE businesses and the Ford

    Motor Company brands.

    MyKey gives U.S. parentspeace of mindFord Motor Company has

    revealed an innovative newtechnology designed to help

    parents encourage their

    teenagers to drive more safe-

    ly and efficiently.

    MyKey, which will debut on

    the 2010 North American Ford

    Focus, allows owners to programme a

    key that can limit the vehicles top speed

    and audio volume. MyKey also encour-

    ages seatbelt usage, provides earlier low-

    fuel warnings and can be

    programmed to sound chimes

    at 45, 55 and 65mph.

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    1. Citron C4 Picasso

    2. Renault Mgane

    5. Ford C-MAX

    1. VW Passat

    2. Skoda Octavia

    3. Ford Mondeo

    9. Ford S-MAX

    1. Ford Galaxy

    2. Renault Espace

    3. VW Sharan

    1. Ford Transit

    2. VW Transporter

    3. Fiat Ducato

    1. Fiat Panda

    2. Fiat 500 (2007)

    12. Ford Ka

    1. Peugeot 207

    2. GM Corsa

    4. Ford Fiesta

    1. GM Meriva

    2. Renault Modus

    3. Ford Fusion

    1. VW Golf

    2. Ford Focus

    3. GM Astra

    Upfront

    6 | November 2008

    Ford market shareSeptember 2008

    total vehicles by country (+/ 2007)

    Segment shares total Europe

    January to August 2008

    A - Austria

    B - Belgium

    CH - Switzerland

    CZ - Czech Republic

    D - Germany

    DK - Denmark

    E - Spain

    F - France

    FIN - Finland

    GB - Great Britain

    GR - Greece

    H - Hungary

    I - Italy

    IRL - Ireland

    N - Norway

    NL - Netherlands

    P - Portugal

    PL - PolandS - Sweden

    RUS - Russia

    TR - Turkey

    TOTAL EUROPE

    7.5% (+0.4%)

    8.0% (+0.8%)

    6.1% (+1.9%)

    10.5% (+1.7%)

    7.7% (+0.8%)

    6.7% (-2.4%)

    8.2% (-1.4%)

    5.3% (+0.7%)

    8.4% (+0.2%)

    14.9% (-0.1%)

    6.9% (-0.7%)

    10.3% (-1.6%)

    7.7% (+/-0.0%)

    16.3% (+0.9%)

    9.2% (+1.5%)

    10.2% (+1.3%)

    7.3% (+0.8%)

    5.2% (-1.8%)5.6% (-0.8%)

    4.2% (-2.0%)

    16.0% (-0.9%)

    8.6% (-0.7%)

    15.1%

    11.9%

    3.6%

    13.1%

    11.3%

    9.8%

    22.5%

    15.7%

    14.1%

    16.3%

    13.4%

    12.4%

    17.5%

    16.0%

    9.6%

    18.9%

    13.3%

    13.1%

    4.6%

    21.5%

    18.0%

    11.8%

    12.5%

    10.4%

    8.0%

    Fiat launcheseco:Drive

    Renault and EDFpartner on electricproject

    Mazda3to debut in LA

    Volvo aimsfor better sound

    Fiat has launched a new systemwhich can actively help people drivemore efficiently by giving them anaccurate insight into how theirdriving style influences fuel con-sumption. On every journey thesystem, called eco:Drive, recordsdetails relating to the vehiclesefficiency and the driving style.

    This data is then uploaded, via aUSB stick, to the drivers computerfor analysis and scoring on anecoindex. The programme alsooffers advice on how to drive in amore fuel efficient manner.

    French carmaker Renault andpower group EDF have signed anagreement to develop a large scaleelectric car project with the goal ofmaking electric vehicles a viable andattractive option by 2011. The part-ners plan to establish an all-electricinfrastructure in France and areseeking partners to build a networkof charging stations across thecountry, eventually creating whatRenault calls an Electric MobilityOperator to manage the system.

    The all-new Mazda3 is to debutat the Los Angeles Auto Show on19 November. Fully redesigned forthe first time in five years, the newMazda3 promises a more refined yetsporty ride, impressive fuel econo-my and environmental and safetyfeatures based on Mazdas long-term Sustainable Zoom-Zoomvision. Since its launch in 2003,the current Mazda3 has soldaround 1.8 million vehicles in over100 countries and has won morethan 90 global awards. It accountsfor almost one in three Mazdas soldevery year.

    Volvo Cars has launched a coopera-tive venture with American audiospecialists Audyssey Labs as part ofthe development of the next genera-tion of audio systems for its cars. Inany listening environment, surfacesabsorb and reflect sound causingdistortion which degrades the listen-ing experience. The US companyhas developed a unique technology,MultEQ, to remove the problems ofsound distortion.

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    13 433 005 (-13 013)

    2 614 481 (-24 786)

    335 804

    181 134

    147 345

    141 420

    106 080

    November 2008 | 7

    Top 5 markets by volumeJanuary to September 2008

    Top 5 markets by shareJanuary to September 2008

    Market ShareMarket Volume

    Total industry Europe 2008 YTD

    By Ingvar Sviggum

    COMMENT

    Vice president,

    Marketing Sales

    and Service

    Cars

    Commercials

    1. UK

    2. Turkey

    3. Ireland

    4. Hungary

    5. Spain

    1. UK

    2. Germany

    3. Italy

    4. Russia

    5. France

    16.1 %

    14.6 %

    13.6 %

    11.6 %

    9.5 %

    Across our main 19 Europeanmarkets we sold 136,700 vehicles

    in September, gaining a market

    share of 9.3 %.

    While our unit sales were lower,

    reflecting a near 9 % fall in industry

    volumes, we made gains in several

    major markets.

    September is a bumper month for

    Britain with buyers attracted by the

    introduction of a new registration

    plate. This year the overall market

    was down about 20 %, but we sold

    55,700 units for a market leadingshare of 14.9 %.

    Germany had yet another strong

    month, increasing sales by 7 % to

    22,300 and improving market share

    by 0.8 % to 7.7 %. The gradual but

    steady improvement in our perform-

    ance in Germany is particularly

    pleasing.

    France also continued to pull

    ahead, increasing sales by more

    than a quarter to 12,000. Share was

    up 0.7 % to 5.3 % and we were the

    leading non-French brand.

    In a declining Italianmarket we

    sold fewer vehicles but our share of

    7.7 % was unchanged from last

    September. We were the countrys

    leading imported brand.

    With the Spanish economy in

    sharp decline our sales dropped to

    6,400, but we retained year-to-date

    passenger car market leadership.

    Among other highlights we over-

    took Toyota to take leadership of the

    Irish market and we were passen-

    ger car leaders in the Netherlandswith a total vehicle share of 10.2 %

    (+1.3 %). Sales were also higher in

    Portugal, Norway,Austria, Swit-

    zerlandand the Czech Republic.

    Outside the EU19 bloc we sold

    12,500 vehicles in Russia, 6,900 in

    Turkey and 5,500 in our EDM mar-

    kets, taking the total for our 51 mar-

    kets to 161,660.

    The Fiesta was our top model in

    September, selling 31,600 across

    our main 19 markets. An impressive

    8,500 of those vehicles were NewFiestas, which is a huge success.

    The Focus was close behind with

    30,800.Mondeo sales totalled

    15,500,C-MAX sold 10,570 and

    S-MAX 4,300.

    Among our commercial vehicles,

    Transit sold 17,600 and Transit

    Connect 4,500.

    Year-to-date

    While the global economic downturn

    continued to impact auto sales in

    some of our main 19 markets, our

    share for the first nine months was

    8.7 %, unchanged from last year.

    But while share was steady, our unit

    sales slipped 4 %, to 1,149,800, in

    line with the decline in the total

    industry.

    Our sales in some major markets

    were weaker but there were

    increases in a number of countries,

    including Germany (+5.6 %), France

    (+11.8 %), Belgium (+8.9 %) and the

    Netherlands (+6.8 %).

    Across all of our 51 Europeanmarkets we sold 1,414,500 units

    in the first nine months of this year.

    Ford sales in Russia and the

    European Direct Markets continued

    to be strong. Year-to-date sales in

    Russia increased by 17.7 %, to over

    141,000, with the EDM markets

    rising more than 38 % to 66,000.

    The market will continue to be

    challenging but I remain optimistic

    because we have an outstanding

    and fresh range of new products

    and, together with our dealer part-ners, we are working hard to give

    customers the high quality vehicles

    and service they want.

    I expect general economic

    concerns to continue in the

    months ahead but we are focused

    on bringing more new models to

    market, including our all-new

    small cars, the Fiesta and Ka.

    FCSD performance

    Although the difficult economic

    environment is starting to affect

    parts and service sales, particularly

    in Western Europe, the FCSD team

    is ensuring every market has a spe-

    cific plan in place to improve service

    traffic in Q4 through aggressive

    advertising and targeted offers for

    older vehicles. These actions will

    continue into 2009 with a specific

    focus on addressing the key con-

    cerns of dealer and customer

    confidence.

    Sales YTD September:

    2.9 % above prior year.

    September sales: 1.6 % above

    prior year - key growth markets

    were Russia, Poland, Czech

    Republic, Turkey and Portugal. VP

    Production Channel also contin-

    ued to be a strong contributor to

    total sales.

    Service Satisfaction

    YTD September:

    Customer satisfaction with Car

    and CV workshop service above

    objective.

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    ONE Ford for a changing world

    In recent years motoring markets around

    the world have been changed fundamentally

    by the influence of a range of global trends,

    such as higher fuel costs and concern for the

    environment.

    The result is that today, customers in thosemarkets want essentially the same thing:

    vehicles that are high quality, fuel efficient,

    sustainable, safe and good value. And they

    want it all wrapped up in a stylish and great

    driving package.

    Because of this seismic shift there has never

    been a better time for truly global vehicles,

    nor for truly global companies to provide them

    and prosper.

    That is why two years ago Ford embarked

    on its ONE Ford strategy of forging its global

    resources into a single entity, focused on

    developing and producing a range of common-

    platform vehicles that deliver what customers

    around the world want.

    The Fiesta is the start. It is our first truly global

    Ford car and, as such, the first manifestation of

    ONE Ford.

    European consumers are the first to get this

    new small car. They will be followed by motor-

    ists in Asia Pacific and North America as the

    model spreads around the world.

    The architect of ONE Ford, Ford Motor Com-

    panys president and CEO, Alan Mulally, was at

    the Paris Motor Show last month and shared

    his vision of the future with the media.

    Clearly, customers from around the world

    are coming together to care about a few keycharacteristics, he told them. One is quality,

    the second is fuel mileage and low CO2, and

    another is safety. The final characteristic is

    better value a smart decision.

    He added: Never in the history of the auto

    industry have those requirements in the cus-

    tomers eyes come together in all of the markets

    around the world. And the Ford plan and the

    strategy were on is to serve our customers

    in Europe, Africa and Russia, thats about one-

    third of the market, the Americas, which is

    about another third, and also the markets in

    Asia Pacific, which is the final third. We are

    going to be there in all three markets.

    The second part of our strategy is that within

    a few years 60% of all the vehicles that are

    sold around the world will be in the smaller size.

    About 25% will be in the medium size and about

    15% will be in the larger size.

    We are going to be there for our customers

    in small, medium and large vehicles cars,

    utilities and trucks and they will be the very

    best in every segment.

    So this is a tremendously exciting time for

    all in Ford Motor Company and for the auto

    industry in general.

    Fiesta is the pioneer, leading the way for other

    global Ford models. The next generation Focus

    will follow in its tyre tracks. It has also beenannounced that future C/D cars will be devel-

    oped in the US for global customers, as Joe

    Bakaj, vice president, Product Programmes

    and Product Development for Ford of Europe,

    explained:

    As part of our global core engineering were

    trying to utilise resources in the best way world-

    wide. What were going to do on C/D cars in the

    US is put together an international team, and

    some of the key players in that team will be, of

    course, European so that we can continue to

    bring the expertise that weve developed in

    Europe to the next generation Mondeo.

    So its going to be good for Europe, its going

    to help us balance the workload and the result

    will be that everybody globally is going to get

    better products. Im looking forward to getting

    the team up and running in the US.

    Coverstory

    8 | November 2008

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    Global vision

    When he visited the Paris Motor Show

    last month Ford Motor Companys

    president and CEO, Alan Mulally, was

    the centre of media attention. But in

    a hectic schedule he spoke to@Ford

    about the Companys progress,

    ambitions and challenges

    What are your impressions of the Ford stand?

    On the Ford stand we have world-class Ford cars, and to see

    the response that were getting from consumers, suppliers and

    the media about the quality of our vehicles, especially the fuelefficiency, is just tremendous. That gives us a lot of hope for the

    future as it shows were doing the right thing for Ford. Were

    going to complement our leadership in trucks and SUVs with

    a full range of outstanding cars that people really will value.

    Its very exciting.

    The Fiesta arrives in North America in 2010,

    why not sooner?

    The Fiesta originally was designed without consideration of

    unique requirements on emissions and safety in the US. At the

    time, fuel prices were relatively low, and so we focused on the fuel

    efficiency of smaller vehicles mainly for the European and Asian

    markets. Now that fuel prices are higher in the US customerswant smaller vehicles. Fiesta is going to be the first one that will

    delight US consumers. Derrick Kuzak (group vice president,

    Product Development) and his team are moving as quickly as

    they can to satisfy the requirements of the US market and then

    launch the new Fiesta in North America in 2010. Right now were

    launching it in Europe. Early next year it will be in Asia Pacific.

    Which customers around the world do you believe

    will buy this model?

    I think it goes back to what the consumers are looking for today.

    First of all, with fuel prices being high, they really want fuel

    efficiency. They want first class quality, they want it to be

    sustainable, they want safety and they wantneat fit and finish. The Fiesta is all of that

    and its going to serve customers

    around the world. The Fiesta is

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    Coverstory

    10 | November 2008

    the first of our global cars that are going to deliver the kind of fuel

    efficiency, safety, driving dynamics and quality that consumers

    will buy from now on.

    This is not the first time weve launched a global car,

    whats different this time?

    I think that the biggest difference now is that consumer require-

    ments are coalescing, theyre coming together. When we had lowfuel prices and low interest rates in the US the consumers chose

    larger vehicles, and we provided great ones, our SUVs and trucks

    were absolutely world class. But as fuel prices have gone up,

    like weve all seen, then the consumers also want neat, smaller

    vehicles. Were going to have cars in the sub-B, the B, the C,

    the C/D size and support all of our customers in Asia Pacific,

    the Americas and Europe.

    What impact is the economic slowdown

    having on that strategy?

    The situation worldwide is a concern to all

    of us because we are slowing down

    economically, not only in the US,but also in Europe and Asia

    Pacific. And these things

    are natural, they usually

    go in cycles; you have a lot of growth followed by a cooling off

    of the economy. So we are in this part of the cycle, but whats

    different now is that we have really high fuel prices around the

    world. So in addition to a cyclical effect, we also have a structural

    effect, and consumers want even more fuel efficient, smaller

    vehicles. We are responding, which is the most important thing

    we can do, by sizing production to real demand and accelerating

    the development of new products that people really want.Weve got the liquidity in place to do both of those and I think

    the real value of leveraging our global assets and working

    together as a global team is that ONE Ford is going to be abso-

    lutely the differentiator and a competitive advantage for Ford.

    How would you summarise Ford Motor Companys

    position in North America and globally?

    North America is clearly dealing with a tough situation. We have

    very good trucks and SUVs, we focused on those and our

    customers love them. Now were seeing a retraction of the global

    economy, especially in the US, and, as I said, with high fuel prices

    customers also want smaller vehicles. So the most important

    thing is that we size ourselves to the real demand, which weredoing, and then bring in new vehicles. Its a tough situation.

    Everyone is pulling together and Im so pleased with the way that

    were working together. The worst thing would be if we didnt

    take decisive action because then wed be in a very, very difficult

    situation. So we should continue to take decisive action and deal

    with this very tough business environment. But everybodys

    working at it and everybody knows its important. So wel l get

    the business turned around and were going to be there with a

    full portfolio of outstanding products.

    Look back at ParisThe big news on the Ford stand was the arrival of the new

    Ka, but it was not the only highlight. Among an extensive

    range was a new Kuga derivative with a 2.5-litre petrol

    engine, automatic transmission and AWD.

    There was also a major focus on low CO 2, fuel

    efficient ECOnetic derivatives of the Fiesta, Focus

    and Mondeo.

    John Fleming announced that the range would

    be expanded by the arrival of an ECOnetic version

    of the new Ka.

    He also showed the Paris audience the

    specially-built Ka which features in the new

    James Bond movie, Quantum of Solace.

    The model features in a key scene in the film where

    Bond first meets his leading lady, Camille, played by

    actress Olga Kurylenko. Olga, right, who lives in Paris,

    made the short journey to the motor show to help Fleming

    reveal her Quantum of Solace Ka.

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    Montage

    BiographyPrior to joining Ford in September, 2006, Alan Mulally served

    as executive vice president of The Boeing Company and

    president and chief executive officer of Boeing Commercial

    Airplanes.

    Mulally joined Boeing in 1969 and progressed through a number

    of significant engineering and programme-management

    assignments.

    He holds degrees in aeronautical and astronautical engineering

    from the University of Kansas and gained a Masters in

    management from the Massachusetts Institute of Technology.

    A native of Kansas, he is a private pilot and enjoys tennis, golf

    and reading.

    What will the structure and business of Ford Motor

    Company look like in five years?

    Were seeing the shape and structure of the future today.

    We started two years ago decisively focusing on the Ford brand.

    And the other thing were doing is to be focused on ONE Ford,

    which means that we are leveraging our assets worldwide, our

    capability in trucks, as well as our capability in smaller vehicles.

    We are also focusing on all markets around the world. So afocus on Ford, global platforms and simplification. Its going to

    be absolutely key that we work together as ONE Ford worldwide.

    And for me thats a very compelling vision for all of us.

    What is Europes contribution to the global transformation

    of Ford Motor Company?

    Ford of Europe is critical to our transformation because fuel

    prices in Europe have been relatively high for a number of years

    and you started earlier than anyone else to design very fuel effi-

    cient, smaller vehicles. So you have a lot of experience, great

    design and you are in the top three best-selling brands in almost

    every market in which you compete. People love the Blue Oval;

    they love the cars. Now we have Europe to draw upon, and yourleadership, to transform the rest of Ford to get these vehicles

    into every market around the world. So very, very important

    leadership from Ford of Europe.

    Finally, what would you like to say to employees

    in Europe?

    Thank you and congratulations.

    Interview by Peter Noble

    November 2008 | 11

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    Custom

    With its cheeky smile and nippy

    performance, the new Ka has a personality

    all of its own, but owners can also stamp

    their own individuality on the model

    through a range of customising options

    Feature

    Three personalisation packs are avail-able offering a combination of interior and

    exterior design treatments. Each has its

    own distinctive exterior design along with

    a matching set of interior features, such as

    seats with unique fabrics and colour com-

    binations, colour-coded interior finishes

    and special steering wheels, gear knobs

    and floor mats.

    These packs are complemented by a

    collection of individual customisation

    items from brightly coloured grille

    surrounds to luxurious leather seats.

    12 | November 2008

    Digital Art This model has a

    vibrant street fashion design usinga high contrast green as the base

    colour. The exterior pack features

    patterned body stripes and solid

    green grille surround and door mir-

    ror cappings. The interior pack

    includes seats with patterned

    inserts and green headrests, green

    door panels, and a solid green finish

    to the centre console bezel, door

    pulls, instrument cluster shroud,

    steering wheel and the rings

    around the air vents. Finish-

    ing touches include a

    gear knob and hand-

    brake handle combin-

    ing green leather with

    an aluminium finish,

    and velour floor mats

    with green stitching.

    Grand Prix This has a motorsports

    theme with a chequered flag motif

    based on either a red or white exterior

    colour scheme (depending on the cho-

    sen body colour). The exterior pack

    comprises patterned body stripes with

    solid colour grille surround and door

    mirror capping, and can be combined

    with a rear spoiler and white alloy

    wheels. The interior pack features red

    seats with an embossed white pattern

    and white headrests, red door panels,

    and red leather trim on the steering

    wheel. A gear knob and handbrake

    handle combining red leather with an

    aluminium finish, and velour floor mats

    with red stitching, complete the

    package.

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    Legislative and consumer demands make it increasingly difficult for

    automakers to make a profit on small cars. That is why, when it came

    to producing a successor to the iconic Ka, Ford of Europe signed a

    development and production co-operation agreement with Fiat.

    Small cars have a small margin, but the investment in the product is

    not all that different from a large car, said John Fleming, executive vice

    president and chairman and CEO, Ford of Europe. That is why we want-

    ed to find a partner to share development and manufacturing costs.

    The deal between the two companies was signed three years ago andFord invested210m in Fiats Tychy plant in Poland to produce the Ka.

    A large chunk of that cash was spent on a new environmentally-friendly

    paint shop.

    The first new Ka model rolled off the assembly line in September. Annual

    production is set at 120,000 units, with sales beginning early next year.

    The link with Fiat has worked very well, said Joe Bakaj, Ford of

    Europes vice president, Product Programmes and Product Develop-

    ment. We enjoyed working with the Fiat team and it was a successful

    partnership. If we hadnt worked with them we wouldnt have been

    able to afford to bring a Ka replacement to the market.

    The joint venture brought significant advantages for both companies.

    By working together, Fiat and Ford benefitted substantially from

    reduced development costs and economies of scale in manufacturing

    and component sourcing, explained project and business manager,

    Tony Dixon.

    While it shares some components with the Fiat 500 (the reigning

    Car of the Year), Ford designers and engineers were responsible for

    the development of the interior and exterior design of the car, and

    vehicle dynamics. They ensured that the Ka has a completely different

    look and character and captures the spirit of the model it replaces with

    its compact size, appealing design, lively dynamics and fun personality.

    With new Fiesta and new Ka, this is the year of the small car for Ford of

    Europe, added John Fleming. And if ever there was a right time to

    launch small cars, it is today.

    Drive appeal

    Unveiled in Paris last month, Fords baby is

    currently casting its charm over the media in

    an extensive test drive programme in Spain.

    The four-week Ka media test drive pro-

    gramme commenced last month on theSpanish island of Ibiza. By the time it ends on

    14 November, some 800 motoring writers and

    journalists from Ford of Europes 51 markets

    will have had the opportunity to put the new

    small car through its paces over a variety of

    roads.

    Early feedback suggests they are impressed

    by the cars style and on-road performance.

    The Italianconnection

    Tattoo An eye-catching model with tattoo designwhich has a heart at its centre, created in bold

    metallic colours. The exterior pack includes a large

    tattoo logo on the roof and a smaller logo on the

    bumper. The interior pack features seats with silver-

    grey fabric inserts and the tattoo logo embossed

    on the backrest, silver-grey headrests and door

    panels, and anthracite leather trim on the steering

    wheel. Velour floor mats with silver stitching and

    embroidered tattoo emblem round things off, along

    with a gear knob and handbrake handle combining

    anthracite leather with an aluminium finish. There is

    also a unique leather seat option which has a spe-

    cial metallic finish on the insert panels and anembossed tattoo emblem.

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    Feature

    14 | November 2008

    Traction Revo-lutionThe new Focus RS has outstanding on-road performance thanks

    partly to an innovation developed by engineers at the Aachen

    advanced research centre

    Torque steer is a phenomenon experienced

    especially in front-wheel drive high performance

    cars during hard acceleration while cornering or

    driving on uneven surfaces. When wheel torqueon one side exceeds grip level, the limited slip dif-

    ferential shifts torque to the other side, which

    results in torque steer, a sudden turning force

    on the steering wheel. Basically, the car starts to

    steer itself to one side.

    To overcome this problem the Focus RS is

    equipped with a new type of front suspension

    system. The innovative RevoKnuckle system

    is designed to reduce unwanted steering

    disturbance and torque steer on front-wheel-

    drive vehicles.

    Fast FordThe Focus RS is the fastest ever European

    Ford production car. With a top speed of

    260kph (162mph) and a 0-100kph (0-62mph)

    time of under 6.0 seconds, the new model

    promises to redefine the expectations of

    a front-wheel-drive high-performance

    vehicle. The model is available in three

    colours: Performance Blue, Frozen White

    and Ultimate Green.

    The advantage of this combination

    is that it allows the traditional

    McPherson strut arrangement to

    function with geometry settings thatminimise steering disturbances and

    torque steer.

    Working with colleagues at Ford Team

    RS, we looked long and hard at how to

    enhance the agility, responsiveness and stabili-

    ty of the high performance RS model, said Pim

    van der Jagt, executive technical leader, Global

    Vehicle Dynamics, Research and Advanced

    Engineering Europe.

    Our work showed clearly that combining a

    tuned RevoKnuckle with the Quaife differential

    was an ideal solution for a high performance

    front-wheel-drive road car.

    We, of course, gave all-wheel-drive careful

    consideration, but by combining and tuning these

    elements and learning from Fords expertise in

    industry-leading handling, we have managed to

    eliminate the weight of all-wheel-drive from the car

    and have still been able to target a class-leading

    balance of traction, handling and performance.

    According to Jost Capito, Ford of Europes

    vehicle line director for Performance Vehicles, the

    result is a lightweight set-up that will deliver the

    right blend of traction and razor sharp controllabil-

    ity in a way no one would have expected from

    front-wheel-drive.

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    Sport

    November 2008 | 15

    Former Ford works driver Francois Duval

    made a successful return to the team on the

    tarmac stages of Spain and Corsica last

    month.

    The 27-year-old Belgian finished fourth in

    Spain in his BP Ford Abu Dhabi Focus RS

    WRC. He then followed that up with third

    place on Rally de France, scoring valuable

    points for Ford.

    On both events Duval allowed regular driver

    Mikko Hirvonen to move past him after the Finn

    was slowed by punctures. The move strength-

    ened Hirvonens position in the drivers title

    race. At the time of writing he was 14 points

    behind Sebastien Loeb with two events

    remaining.

    Duval, who was drafted back into the Ford

    team because of his expertise on tarmac, will

    make way for Jari-Matti Latvala on the final two

    events of the season. Speaking in Corsica, he

    said: My role was to help the team and so it

    The 2008 Fiesta SportingTrophy Interna-

    tional series is set for a thrilling finale on the

    forest stages of Wales Rally GB next

    month.Two young Turks face a straight shoot-

    out for the silverware on this last event of

    the season. They are 25-year-old Emre

    Yurdakul and his 27-year-old rival Burcu

    Cetinkaya.

    Yurdakul has a slender one point lead

    over Cetinkaya following an impressive

    victory on RallyRACC Catalunya in his

    Group N spec Fiesta ST. He picked up

    seven stage wins in Spain to overhaul

    Cetinkaya at the top of the table with just

    2007 Fiesta SportingTrophy International winner Barry

    Clark has made an impressive transition into WRC this

    season in his Ford Focus RS WRC, his prize for winning

    the FSTi championship.

    The 26-year-old Scot made his WRC debut with the

    Munchis World Rally Team in Jordan in April, finishing

    12th in a Focus RS WRC. Two months later in Turkey he

    finished tenth in another Focus, an impressive result

    he achieved again in October on Rallye de France.

    Clark is aiming to finish even higher up the leader

    board when he tackles next months Wales Rally GB in

    a Focus.

    Teamwork key to Fordstitle challenge

    Fiesta star stepsup to WRC

    one rally remaining. Cetinkaya had led

    the series for much of the season but she

    slipped to second place after two offs on

    the penultimate round.Whoever finishes highest up the leader

    board in Wales will win an exclusive, all-

    expenses-paid test in a factory supported

    Ford Focus WRC 08 at M-Sports own

    test facility in Cumbria. The victor will get

    one-on-one tuition from double World

    Champion Marcus Gronholm.

    Also up for grabs is an entry to the FST

    International Shootout in order to com-

    pete against FST competitors to win a

    contract to work for the M-Sport and the

    BP Ford Abu Dhabi World Rally Team

    in 2009.

    First launched in 2006, the Fiesta

    SportingTrophy International is based on

    the highly acclaimed Fiesta ST. So far this

    year, 13 drivers from across Europe haveentered the competition - with further

    entries expected for Wales Rally GB -

    which features four gravel and two Tarmac

    rounds of the World Rally Championship,

    starting in May with Rally dItalia Sardegna

    and then visitingTurkey, Finland, Germany

    and Spain, before concluding in Wales.

    made perfect sense for me to help Mikko.

    Team director Malcolm Wilson said: We

    had to employ some tactics to try to win the

    manufacturers title for a third consecutive sea-

    son and to give Mikko the best opportunity of

    claiming the drivers crown. Fortunately every-

    thing went absolutely to plan. The guys did a

    great job, they were very professional about

    the whole thing.

    Turks close in on FSTi title

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    Fiesta time

    in Barcelona

    An integral part of the launch programme of any new car is the

    central dealer launch. For new Fiesta, Ford headed to Barcelona,

    where it gave 7,000 dealers from nine markets across Europe

    the chance to get behind the wheel for the first time and learn

    all about the vehicle, its key selling points and the range of

    available options.

    After touching down at the airport the dealers were taken to

    Montjuic, a spectacular viewpoint near the city centre and the

    starting point for an evening test drive that took in many of the

    nearby sights, including the Olympic Stadium and the world

    famous Sagrada Familia cathedral. It is estimated that the dealers

    collectively drove for 24,500 hours as they explored the vibrant

    Spanish city and made their way to the hotel.

    In preparation for the Fiesta Now event Ford lined the streets

    with more than 600 Fiesta banners, five totems, a spectacular

    1,000m2 sign draped across a building on one of the citys main

    thoroughfares Avenida Diagonal and a 195m2 video screen

    at the airport.

    The following day, each dealer group attended a series of train-

    ing and motivation workshops which focused on the car and its

    customers. The workshops looked at customer lifestyles, key

    selling points and the vehicles marketing strategy.

    Having learned more about Fiestas strengths and target cus-

    tomers, the dealers were again put behind the wheel for a drive

    session which enabled them to interact with the cars new

    technology, receiving a phone call using Bluetooth connectivity

    and listening to product messages on the USB connection.

    They were also invited to take photographs, which were

    posted directly onto www.flickr.com (see them by searching for

    Fiestanow). The technology drive was complemented by a

    design, comfort and driving dynamics comparison test against

    key market competitors.

    For those markets that did not attend the Barcelona event a

    Launch in a Box was provided. This contained a series of presen-

    tations and various information about drive and training activities.

    Fiesta gets TV seal of approvalThe all-new Fiesta is the latest Ford model to be awarded an

    official allergy-tested seal by the TV.

    In total nine Ford cars are now certified by TV the current Ka

    model, Fusion, Focus, C-MAX, Kuga, Mondeo, S-MAX, Galaxy

    and the new Fiesta. Ford is the only car manufacturer in the world

    whose products carry official TV allergy-friendly certification.

    The TV is an independent, authoritative German testing

    and assessment organisation that controls and certifies quality

    standards for industrial and consumer products. Its certification

    assures a vehicles interior materials are selected in order to mini-

    mise the allergy risk to the lowest possible level.

    Feature

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    Auto Piu, Italy: Fiestas handling has

    matured greatly, as reflected by the

    steering (which is precise and light) and

    its intuitive, safe road performance. This

    Ford remains undaunted in the face of

    sudden shifts in weight or emergency

    braking on curves.

    The Sun, UK:I was stunned with how

    good the Fiesta is. This is one sleek and

    stylish car when you get inside youll

    be amazed not only at how much space

    there is - the front leg room is the best in

    its class - but also at the sheer quality of

    the cabin.

    Coche Actual, Spain:When it comes to

    dynamics, we need only drive a few kilo-

    metres to realise that the new Fiesta

    aims much higher than the previous one.The model is now at the top of its game

    where tread quality and road perform-

    ance are concerned, remaining steady

    in any situation.

    Auto Plus, France:The new Fiesta

    immediately finds its place among the

    category leaders. It is a champion of

    compromise that has no glaring faults.

    Its pronounced style and state-of-the-art

    on-board technology will be the reasons

    people are attracted to the Fiesta.

    Auto Zeitung, Germany:Congratulations

    to Ford in Cologne: the new Fiesta plays

    premiere league in the small car seg-

    ment. It is comfortable and agile, well

    built and affordable.

    Autogids/Moniteur de lAutomobile,

    Belgium:With the new Fiesta, Ford has

    undoubtedly introduced a winner to the

    market. It looks great, drives excellently,

    offers plenty of space and has an attrac-

    tive finish.

    Het Nieuwsblad, Belgium:Ford is keen

    on economy but its youngest sprig also

    shows an exciting character the sixth

    generation is a very good looking little

    car with an exciting drive.

    The TV conducts extensive, scientifically verifiable tests

    including the analysis of more than 100 materials and compo-

    nents for harmful substances or allergy-causing potential.

    This award is another significant contribution to the sustaina-

    bility story behind the new Fiesta and it reflects the attention to

    detail and quality present in all Ford vehicles, said Dr Wolfgang

    Schneider, vice president of Legal, Governmental and Environ-

    mental Affairs, Ford of Europe. We know such credentials are

    important to our customers and we will continue to develop vehi-

    cles to these standards.

    As part of Fords development programme for vehicle interiors,

    engineers reduce to the absolute minimum use of materials that

    can provoke allergic reactions in some people, such as latex,

    chrome and nickel. Additionally, all components likely to have

    direct and prolonged skin contact, such as the steering wheel,

    seat covers and seat belts, are dermatologically tested. Vehicles

    are also equipped with high-performance pollen filters that pre-

    vent allergic pollens from entering the cars interior and ensure a

    high level of cabin air quality.

    The TV measurement and assessment results for all Ford

    cars are now published online at www.tuv.com.

    Media coverage

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    Executive editor: Emmanuel Lubrani, [email protected] | Copy editor: Richard Noble, r [email protected] | Design: Manfred Mller, [email protected],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

    Ford

    Fiesta quality a triumph

    for teamwork

    on-line. In one example, the production team built

    the same car on the line every day, then stripped

    it down and built it again.

    We staggered the launch, starting with a verylow volume and low derivatives so the operators

    did not have to rush and could call for help if need-

    ed. When it reached a stable level of production

    and quality, production was ramped up, said

    Schmitz.

    New quality checks have included an in-car

    entertainment test cell, new visual check system

    in the bodyshop for closures and a new noise,

    vibration and harshness test stand (which was

    actually commissioned while the previous car

    was in production).

    Teamwork has been critical to success, said

    Schmitz: We really have worked closely as a

    team, with everyone involved early in the process.

    We have adopted a white board process to follow

    up on quality issues brought up at the daily meet-

    ings we have had for the last five months; within

    24 hours we have a feedback on both interim

    containment and permanent corrective actions

    to ensure the highest quality.

    Kelvin Brown

    other production but it was a challenge that was

    very effectively handled by all production areas,

    said Cologne plant quality manager Christian

    Schmitz.We had big teams in at weekends, including

    suppliers. It meant lots of weekend working

    and lots of advance planning.

    That planning had started two years before

    Job 1 with discussions with Product Develop-

    ment. Every aspect of the quality of the then-

    current Fiesta was looked at closely and a list of

    must and want items for the new car drawn up.

    There were instances where components had

    to be designed in a different way or changes made

    to ensure that line operators would not be able to

    assemble a part incorrectly or take a wrong part.

    A senior person in the plant was assigned to

    each supplier of key commodities to ensure that

    suppliers understood all the issues in the plant.

    It meant that any problems with the parts experi-

    enced on the previous Fiesta were addressed

    and all issues with the old model removed.

    Key to the successful launch was training.

    Some of the 50,000 hours of operator training

    was done off-line on static cars, with other training

    Getting a new vehicle to Job 1 on time and at

    the right quality is a major operation for the manu-

    facturing plant, involving teams from across the

    Company and the supplier base working relent-lessly to resolve every issue.

    When John Fleming praised the new cars

    high manufacturing quality he was acknow-

    ledging the huge amount of work that has gone

    in to ensuring that Fords first global car offers

    the very highest levels of quality.

    The all-new Fiesta is manufactured with

    sophisticated techniques more commonly found

    in the production of large cars - techniques intro-

    duced at the Cologne assembly plant without

    interfering with existing Fiesta production.

    In an operation planned with military-like preci-

    sion, the all-new Fiesta manufacturing team went

    into the plant on weekends to install and verify

    new systems on the existing line.

    Production of the former Fiesta continued

    through the week, until Saturday mornings,

    then the manufacturing team had until Monday

    morning to work on pre-production modifications

    and try-outs.

    It was quite a challenge to get to Job 1 alongside

    Feature

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    St S f

    ONE Ford.

    MANY languages.