Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor Company — RBC Capital Markets Global Industrials Virtual Conference 2020
13 slides from Ford Mtr Co Del's conference presentation, Sep 14, 2020
Slide 1: RBC Capital Markets Global Industrials Virtual Conference
Lisa Drake North America Chief Operating Officer Lynn Antipas Tyson Executive Director of Investor Relations RBC Capital Markets Global Industrials Virtual Conference September 14, 2020
Slide 2: Fitness Drives Value Creation
Fitness Drives Value Creation • Addressing underperforming parts of the business ꟷ Exited sedan silhouettes in North America ꟷ Reset and redesign of Europe • Winning portfolio ꟷ Flexible architectures ꟷ Global refresh ꟷ Enterprise Product Line Management • Connectivity • Alliances as a competitive a
Slide 3: Priorities: Fix, Accelerate, Grow Initiatives
Priorities: “Fix, Accelerate, Grow” Initiatives FIX Launch | Quality | Cost | Sales & Marketing ACCELERATE Connectivity | Commercial Vehicle Business | Customer Service (FCSD) Affordable Vehicle Portfolio | BEV Commercial Vehicle | GROW Autonomous Vehicles Intense Focus On Delivering Improvements Ac
Slide 4: North America Opportunity
North America Opportunity 2019 North America EBIT Mach-E F-150 Bronco 10% Operating $6.6B Margin EBIT $9.8B 6.7% EBIT EBIT Margin Portfolio Refresh, Fitness And Growth Opportunities Will Drive 10% EBIT Margin In North America 4
Slide 5: Improve Launch Execution
Improve Launch Execution DRIVERS OF SUCCESS: ✓ Plant preparedness F-150 ✓ Software readiness BRONCO ✓ Manufacturing prudence ✓ Supplier fitness ✓ Demand KPIs MUSTANG MACH-E BRONCO SPORT BEV SUV On Track To Deliver Market-Changing Product And Segment Launches Globally Incremental / all-new segment 5
Slide 6: Implementing Actions To Improve Quality Performance
Implementing Actions To Improve Quality Performance • Increased static and dynamic inspection for engineering and manufacturing error states Engineering • Increased internal and external screening for contamination issues • End of line actions to validate latest software prior to next build • Detail
Slide 7: Material Cost Initiatives
Material Cost Initiatives NOW │ Current Reduce Production Incremental Design(2020 Cost CY) NEAR / FAR │ Future Human-Centered Products Product Decision Third Party Benchmarking Leverage Analytical Modeling Eliminate “What Matters Least” Best Cost At Launch Reduce Complexity / Leverage Scale Connecte
Slide 8: North America Opportunity – Illustration
North America Opportunity – Illustration 100% • Refreshing portfolio – moving average showroom age Portfolio Refresh from 5 years to a more YoY Change In Material Cost Cumulative competitive 3 years which requires significant investment in materials • YoY change in cost moderates as portfolio hits 1
Slide 9: Connected Vehicle Data Tools For Launch
Connected Vehicle Data Tools For Launch Connected Data From Pre-Production Vehicles Is Enabling Early Problem Detection Accessing And Analyzing Faster Issue Detection Vehicle Data Remotely And Resolution An engineer located 30 miles away Power running board failure was was able to remotely diagnose
Slide 10: Use of Connected Data – Material Cost Example
Use of Connected Data – Material Cost Example F-150 Rear Door Passive Entry / Passive Start How Many Times A Feature Is Used Per Trip / Interaction Driver Front IDEA DESCRIPTION: Remove Passive Entry / Lock Driver Rear Feature From Rear Door Handles Passenger Front 1.3 Passenger Rear Trunk 1.1 1.1 1
Slide 11: Key Takeaways
Key Takeaways Levers to achieve 10% adjusted EBIT margin: • Winning portfolio – on glide path to reduce average showroom age from over 5 years to 3 years • Laser focus on cost including materials and warranty – leverage benefits of connectivity • Growth in electric, autonomous and commercial vehicle
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Slide 13: Cautionary Note On Forward-Looking Statements
Cautionary Note On Forward-Looking Statements Statements included or incorporated by reference herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts, and assumptio
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