Ford 2013 Annual Report Download - page 16

14 Ford Motor Company | 2013 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Our One Ford global product development process utilizes global platforms to deliver customer-focused programs
rapidly and efficiently across global markets. Significant progress has been made and continues on our commitment to
consolidate platforms. In 2007, we utilized 27 different vehicle platforms; we now have 15 total platforms, and are on
track to meet our target of nine core platforms globally. In 2013, about 85% of our global vehicle volume was produced off
of nine global core platforms. By 2016, 99% of our global vehicle volume will come off of our nine global core platforms.
We are able to reinvest the savings of this platform consolidation back into product development, introducing more
products at a faster product cadence, and better profitability.
Accelerate Development of New Products Our Customers Want and Value
Our product launch schedule for 2014 is the most aggressive in our history. We will launch 23 all-new or significantly
refreshed vehicles around the world—more than double the 11 global vehicles launched in 2013. In North America, we
will have 16 launches—triple the number of vehicles launched in 2013. Globally, 150% of our product portfolio will change
with all-new or significantly refreshed vehicles between 2014 and 2018. Our industry-leading refresh rate results in
continuous improvement, and we expect to have the lowest average age for global passenger vehicles in 2014.
During 2014, we will launch an all-new Mustang, which will be available in the United States this fall, in Europe in
early 2015, and in China and other Asia-Pacific markets in 2015. Mustang will be available with three engines offering a
broader power of choice, and world-class ride and handling enabled by a fully independent suspension.
An all-new F-150 will be available in late 2014 with an all-new high-strength steel frame and advanced aluminum alloy
body, which will result in up to 700 pounds of weight savings to help the F-150 tow more, haul more, accelerate quicker,
and stop shorter, all with better gas mileage. The new F-150 also will introduce 11 new class-exclusive features, including
a 360-degree camera view, integrated loading ramps stowed in the pickup bed, 400-watt power outlets inside the cab,
LED headlights and sideview mirror spotlights, and remote tailgate release. Four engine choices will be available to
provide unmatched power to meet almost any customer need.
We remain committed to reinventing Lincoln into a world-class luxury brand with a client experience to match. Our
Lincoln brand transformation began with the Lincoln MKZ which was completely redesigned for 2013. The Lincoln MKZ is
the first of four all-new vehicles that we will be launching through 2016 as part of our reinvention. The Lincoln MKZ was
named 2013’s best compact premium vehicle in the J.D. Power APEAL Study, with January 2014 sales in the United
States up 368% year-over-year.
In 2014, we are adding the Lincoln MKC to the Lincoln line-up, providing an entry in the important and fast-growing
small premium utility segment, one of the fastest growing premium segments in both the United States and China.
Our global product strategy is to serve customers in all markets with a full family of best in class vehicles—small,
medium and large; cars, utilities and trucks; each delivering the highest quality, fuel efficiency, safety, smart design, and
value—and delivering profitable growth for all. The fundamentals of our global product strategy are consistent, producing
vehicles that:
• Have bold, emotive exterior designs
• Are great to drive
• Are great to sit in (second home comfort, convenience, exceptional quietness)
• Provide fuel economy as a reason to buy
• Are unmistakably a Ford or Lincoln in look, sound, and feel
• Provide exceptional value and quality
Developing products customers want and delivering value for Ford and Lincoln demands consistent focus on our
commitment in four key areas—Quality, Green, Safe, and Smart.
Quality. We have made significant strides toward improving quality since 2005. One way we track this is in the
incidence of warranty repairs per 1,000 vehicles in the first 3 months of service. Global warranty repairs have fallen 66%
from 2005 to 2013. As the incidence of repair has come down, so has the average warranty cost per unit in the first 3
months in service. Over the same period, global warranty repair cost per unit has improved by 54%, including
improvements of more than 70% in Asia Pacific Africa, more than 60% in Europe and South America, and about 45% in
North America.