Ford Mtr Co Del · NYSE:F
Ford Mtr Co Del — Ford Motor — Bank of America Merrill Lynch 2012 New York Auto Summit
27 slides from Ford Mtr Co Del's conference presentation, Apr 4, 2012
Slide 1: Bank of America Merrill Lynch 2012 New York Auto Summit
MARK FIELDS Executive Vice President, Ford Motor Company President, The Americas Bank of America Merrill Lynch 2012 New York Auto Summit April 4, 2012
Slide 2: Agenda
SLIDE 2 • ONE Ford Plan Update • North America -- Including U.S. Industry Outlook • South America • Europe, Asia Pacific Africa, and Ford Credit • 2012 Planning Assumptions and Key Metrics • Closing Remarks • Q&A AGENDA
Slide 3: The ONE Ford Plan -- To Deliver Profitable Growth For All
SLIDE 3 BLANK THE ONE FORD PLAN -- TO DELIVER PROFITABLE GROWTH FOR ALL • Aggressively restructure to operate profitably at the current demand and changing model mix • Accelerate development of new products our customers want and value • Finance our Plan and improve our balance sheet • Work together
Slide 4: The Plan
SLIDE 4 THE PLAN • Great Products…Strong Business…Better World • Serve all major markets • Expand in BRIC markets • Focus on the Ford and Lincoln brands • Full line-up of vehicles – Small, Medium and Large…Cars, Utilities and Trucks – Electrification strategy -- “Power of Choice” – Commitment to pro
Slide 5: The Plan (Cont'd)
SLIDE 5 • Improve time to market • Freshest showroom • Enhance customer experience • Deliver the brand promise • Fully competitive revenue • Global platforms and scale • Flexible and efficient production • Fully competitive costs • Return to and maintain investment grade • Skilled and motivated team
Slide 6: Mid-Decade Outlook
SLIDE 6 MID-DECADE OUTLOOK Mid-Decade Outlook* Wholesale Volumes About 8 million Revenue / Pricing Improving Automotive Operating Margins** - North America 8 - 10% - Global 8 - 9% Ford Credit Return on Equity Low Double Digits Capital Spending About $6 billion Total Automotive Debt About $10 billion
Slide 7: Four Pillars of Global Product Strategy
SLIDE 7 ‘FOUR PILLARS’ OF GLOBAL PRODUCT STRATEGY Drive quality. Drive green. Drive safe. Drive smart. Quality Leadership Fuel Economy Leadership Safety Leadership Infotainment Leadership Ford Continues To Advance Its Global Product Strategy
Slide 8: Global Product Plan -- Platform Consolidation & Increasing Scale
SLIDE 8 Mid-Decade Ongoing Annual Volume GLOBAL PRODUCT PLAN -- PLATFORM CONSOLIDATION & INCREASING SCALE Platform Consolidation Underway With Common Global Top Hats. By 2013, 85% Of Volume Is On 9 Core Platforms Segment Sample Vehicle B Segment C Segment CD Segment Compact Pickup Segment Commercial
Slide 9: North America Overview
SLIDE 9 • 2011 was second consecutive year of Full Year profitability • Strong North America cash flow driving balance sheet improvements • Three consecutive years of year- over-year market share gains • Significant improvement in net revenue per unit and residual values • Global product strategy ac
Slide 10: 2012 Product Introductions -- Ford Brand
SLIDE 10 2012 PRODUCT INTRODUCTIONS -- FORD BRAND Taurus + SHO Mustang (V6,GT & Boss) Flex Focus Electric Mustang GT500 All-New Escape All-New C-MAX Hybrid All-New Fusion C-MAX ENERGI GLOBAL GLOBAL GLOBAL GLOBAL GLOBAL Super Duty GLOBAL First Half Second Half North America Aggressive Product Launch
Slide 11: 2012 Product Introductions -- Lincoln Brand
SLIDE 11 MKS MKT Key Features Of The All-New MKZ • MKZ is a transformational product for the Lincoln brand • All-new exterior and interior created by the Lincoln Design Studio • Premium-grade materials create a luxurious and comfortable interior space • Leading technologies: – SYNC with MyLincoln To
Slide 12: North America -- Quality Trend
SLIDE 12 NORTH AMERICA -- QUALITY TREND Ford North America Addressing 2011 Quality Issues Chrysler-Fiat GM Honda VW Hyn-Kia Better Toyota 2008 2009 2010 2011 Ford Things Gone Wrong* (TGW) *Ford Global Quality Research System (GQRS)
Slide 13: North America Fuel Economy Leadership -- Technology and Innovation
SLIDE 13 New Industry Leading Fuel-Efficient Products Ford is leveraging a portfolio of technologies – EcoBoost, HEV, PHEV, and BEV In 2012 North America will offer 11 vehicles with EcoBoost – many are fuel economy segment leaders Ford is the largest U.S. domestic hybrid seller Nearly one-third
Slide 14: North America Fuel Economy Leadership -- EcoBoost Technology
SLIDE 14 North America Will Offer Eleven Vehicles With EcoBoost In 2012 22 mpg highway 28 mpg highway 30 mpg highway Projected 31 mpg highway Projected 33 mpg highway Projected 37 mpg highway F-150 Explorer Edge Taurus Escape Fusion NORTH AMERICA FUEL ECONOMY LEADERSHIP -- ECOBOOST TECHNOLOGY Fuel E
Slide 15: North America Fuel Economy Leadership -- Electrification by Platform
SLIDE 15 POWER THE CHOICE OF Ford’s Strategy Is To Electrify Global Platforms With All 3 Electric Solutions; To Drive Choice Of Top Hats, Scale And Affordability 110 MPGe city NORTH AMERICA FUEL ECONOMY LEADERSHIP -- ELECTRIFICATION BY PLATFORM Focus Fusion 100+ MPGe city projected
Slide 16: U.S. Economic Outlook
SLIDE 16 U.S. ECONOMIC OUTLOOK • U.S. economy continues on a gradual recovery path – Consumer confidence rising, reflecting brighter job market prospects – Labor market gaining momentum with more significant employment increases in recent months – Housing market reached its trough with potential gro
Slide 17: U.S. Industry SAAR
SLIDE 17 U.S. INDUSTRY U.S. Industry SAAR (Mils.) 1Q11 2Q11 3Q11 4Q11 U.S. Industry Sales Are Improving Faster Than Expected Initial Assumption Jan Feb Mar 13.4 12.4 12.7 13.8 14.5 15.4 14.8 13.5–14.5 14.5–15.0 2012 Outlook Present INCLUDES MEDIUM AND HEAVY TRUCKS Memo: 2012 First Quarter U.S. Indus
Slide 18: First Quarter Sales and Market Share
SLIDE 18 First Quarter Total Share Down And Share Of Retail Industry Up From 2011. Continuing To Manage The Business To Maximize Profitability • Ford’s First Quarter sales were up 9% from a year ago, retail sales were up 13% from a year ago • Ford’s First Quarter total share was 15.2%, down 0.8 poin
Slide 19: North America Production Capacity
SLIDE 19 NORTH AMERICA PRODUCTION CAPACITY * Excludes special items Ford Is Adding 400,000 Units Of Annual Capacity In 2012 To Meet Industry Demand For Our Products NA End-of-Quarter Straight-Time Production Capacity (Mils.)* 1Q12 2Q12 3Q12 4Q12 Chicago: •Add 3rd Crew Michigan: •Add 3rd Crew Kansas
Slide 20: South America Overview
SLIDE 20 • South America continues to deliver positive operating performance • Quality and brand health improving • New entrants and added capacity have created a more competitive market environment • Weak exchange and regional trade tensions will also pressure 2012 results • Transition to global pr
Slide 21: South America Business Environment
SLIDE 21 SOUTH AMERICA BUSINESS ENVIRONMENT • GDP growth of 3-4% across the region is supporting steady growth in industry sales • The market environment, especially in Brazil, is becoming increasingly competitive – New importers, including the Koreans and Chinese, are entering the market with new p
Slide 22: 2012 Product Introductions -- Ford Brand, South America
SLIDE 22 All-New Fusion GLOBAL 2012 Second Half All-New Ranger GLOBAL All-New EcoSport 2012 PRODUCT INTRODUCTIONS -- FORD BRAND South America South America’s Transition To Global Products Accelerating In 2012 GLOBAL 2012 First Half 2011 Second Half GLOBAL All-New Fiesta
Slide 23: Europe, Asia Pacific Africa, and Ford Credit Outlook
SLIDE 23 EUROPE, ASIA PACIFIC AFRICA, AND FORD CREDIT OUTLOOK • European external environment is uncertain and the automotive industry remains under pressure – Full Year 2012 industry volume for the 19 markets we track is expected to be about 14 million units – Full Year 2012 results for Ford Europe
Slide 24: 2012 Planning Assumptions and Key Metrics
SLIDE 24 On Track For Improved 2012 Automotive Pre-Tax Operating Profit, Strong Operating-Related Cash Flow, And Solid Ford Credit Profit TOTAL COMPANY 2012 PLANNING ASSUMPTIONS AND KEY METRICS Full Year Full Year Plan Outlook Planning Assumptions Industry Volume (SAAR)* -- U.S. (Mils.) 13.5 - 14.5
Slide 25: Closing Remarks
SLIDE 25 • The ONE Ford Plan continues to deliver profitable growth • The Americas will drive improving Automotive profitability for Ford in 2012 • European business environment will remain difficult and uncertain, and Asia Pacific Africa continues to invest for the future • Execution of our product
Slide 26: Questions?
Go Furthe QUESTIONS?
Slide 27: Safe Harbor
SLIDE 27 SAFE HARBOR Statements included 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 assumptions by our management and involve a number of risks, un
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