Ford 2007 Annual Report Download - page 7

5Ford Motor Company | 2007 Annual Report
ONE TEAM, ONE PLAN, ONE GOAL…
ONE YEAR
Last year in this report I introduced you
to the principles, practices and priorities Ford
Motor Company began operating under after
I joined the team in September 2006. I would
like to take this opportunity to update you
on the progress we made in our first full year
and our plans for the future.
Although a financial statement is just a
snapshot in time, the numbers we achieved
in 2007 are encouraging. Our overall net loss
of $2.7 billion represented an improvement
of nearly $10 billion over 2006. Excluding
special items, we achieved a pre-tax profit
from continuing operations of $126 million. All
of our Automotive operations were profitable
outside of North America, excluding special
items, as was our Financial Services sector,
which earned a pre-tax profit of $1.2 billion.
Our worldwide Automotive revenue,
excluding special items, was $155.8 billion in
2007, compared with $143.3 billion in 2006.
Automotive gross cash (including cash and
cash equivalents, net marketable securities,
loaned securities and short-term Voluntary
Employee Beneficiary Association (VEBA)
assets) at December 31, 2007 was $34.6
billion, an increase of $700 million from the
previous year-end.
As pleased as I am by these results, I am
even more excited about the progress we are
making behind the scenes in the key areas
that I outlined last year.
ONE FORD
In last year’s report, I described our
efforts to fully leverage the tremendous
worldwide resources of Ford. We offer a full
line of products in a fiercely competitive global
industry. To achieve profitable growth we need
to take advantage of every potential economy
of scale and best practice we can find. That
means operating as one team around the
world, with one plan and one goal – which
is what we did in 2007.
We came together as a global team,
working with mutual respect and trust. We
looked at the difficult challenges we faced
and created a plan that dealt with the reality
of our situation. We set a goal that would
create value for our extended family of
customers, employees, suppliers, dealers
and shareholders around the world.
And then we got to work.
ONE TEAM
When I arrived at Ford I was extremely
impressed by the talent and dedication of its
people. Since then, we have worked hard to
unleash their full potential by building a real
team and creating an atmosphere of trust.
We began with the senior leadership
team, streamlining positions and moving
several people up to head unified global
organizations. For example, all of our product
development operations worldwide now
report to one person, Group Vice President of
Global Product Development Derrick Kuzak.
Our purchasing, manufacturing, quality,
communications and several other functions
also were given a global structure to make
better use of the company’s worldwide assets.
We added one of the most talented
marketing executives in the industry, Jim
Farley, as group vice president of Marketing
and Communications. And we created
the industry’s first senior executive for
sustainability, naming Sue Cischke as
our senior vice president of Sustainability,
Environment and Safety Engineering.
I meet with our senior leadership team
once a week in a half-day session to review
progress toward our goals and address any
roadblocks. Individuals are held accountable
for delivering results, but we work together as
a global team to find the best solutions. Even
though we are a relatively new team, we are
already performing and operating at a high
level, and we continue to improve.
The best example of what I mean when
I talk about working together to make Ford a
vibrant and successful company is our new
agreement with the United Auto Workers.
In November 2007, we signed a four-year
national labor contract with our UAW partners
that significantly improves our competitiveness
going forward. This landmark agreement will
enable us to invest in the new products that
are a key element of our global plan.
ONE PLAN
Our worldwide team is focused on
four key priorities: aggressively restructuring
to operate profitably at the current demand
and changing model mix, accelerating the
development of new products that our
customers want and value, funding our plan
and improving our balance sheet, and elevating
to a new level of performance our commitment
to working together with all of our partners.
These are the same priorities I outlined in
this report last year, and they will remain our
priorities for the foreseeable future.
A MESSAGE FROM THE PRESIDENT AND CEO
Bill Ford (left) and Alan Mulally
are shown in front of the 60-foot-
wide digital “powerwall” video
screen Ford designers are using
to bring new products to market
faster, as well as the Ford Escape
Hybrid Plug-In research vehicle,
which the company is testing
in partnership with Southern
California Edison.