Operations

Ford Announces New Initiative to Simplify its Vehicles

Posted on January 30, 2008 by LCT Staff - Also by this author - About the author

DETROIT — At a town hall meeting with employees last week at the Ford Motor Company headquarters in Dearborn, Mich., Alan Mulally, the chief executive, pulled out a laminated card emblazoned with the words “One Ford” and the company’s blue oval logo.

The new campaign is part of Mulally’s plan to help focus his company on what he says is its next big priority: simplifying the fleet of vehicles it sells around the world, and better integrating its far-flung divisions.

Much of his focus since joining Ford 16 months ago has been on cutting costs and jobs. And more buyouts were recently announced, when the company reported that it had narrowed its overall losses in 2007 to $2.7 billion, a major improvement after its wrenching $12.6 billion loss in 2006.

“The real work at Ford going forward is that we continually integrate the four companies around the world,” he said in an interview on Thursday.

Mulally is modeling his “One Ford” idea on his former employer, Boeing, as well as on Toyota’s vaunted product-development system. A self-proclaimed admirer of Toyota, Mulally said the company could cut costs further by copying the Japanese automaker’s strategy of building differently styled vehicles on similar basic chassis structures.

Ford’s product development chief, Derrick Kuzak, said at a recent industry conference that the automaker would reduce its number of global vehicle platforms by 40% by 2012.

“Seventy percent of our total volume will be on eight platforms by 2012,” said Mullaly. “You can only imagine what a tremendous improvement that will be.”

Mulally, brandishing his “One Ford” card, seems determined to make this plan stick, since it will be an important part of his strategy to tighten Ford’s cost structure and return to profitability in 2009.

Ford still posted a pretax loss of $3.5 billion in its North American market, despite slashing 32,800 hourly jobs through buyouts and retirements.

The automaker, which lost its No. 2 ranking in United States vehicle sales to Toyota in 2007, said on Thursday it would offer buyouts to its remaining 54,000 unionized United States workers.

While the company declined to say how many more jobs it hoped to reduce, analysts said the cutbacks are a critical component of Ford’s “Way Forward” reorganization plan. “It’s one of the few areas of Way Forward that appears to be tracking,” said Peter Nesvold of Bear Stearns.

SOURCE: New York Times

View comments or post a comment on this story. (0 Comments)

More News

Windy City Limousine & Bus Wins "Best Of" Award

The company's diverse fleet and years of experience have earned it many achievements.

Fugitaboutit! Operators Deal With NYC Traffic Woes

Weather and mass transit delays always create additional problems, but 50,000 TNC vehicles ratchet up congestion.

Arkansas Operation Recognized As Small Business of the Year

Pinnacle Car Services, Inc. recieved the accolade from the Greater Bentonville Bella Vista Chamber of Commerce.

How To Make Your Buses Comply With The Latest Rules

eNews Exclusive: Joe Guinn guides operators on the best ways to prepare for the large leap from sedans and SUVs to buses and motorcoaches.

What Is The Future Of The New Luxury Traveler?

There is a growing demand for more human connectedness and meaningful experiences for both adults and children.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - May 2017 $12.95 Post International LCT Show Issue COVER STORY: * Best Operators of 2017: Their Winning Secrets Revealed * *
LCT Magazine - April 2017 $12.95 F&I / SPECIAL EVENTS ISSUE COVER STORY: * Don't Panic: Confronting Worst Fears - Fleet Risks * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close