"The Role of Innovation in Industry Sustainability"

January 2009

““The Role of Innovation in The Role of Innovation in Industry Sustainability”Industry Sustainability”

Paul MascarenasVice President Engineering, Global Product

DevelopmentFord Motor Company

January 2009

Innovation Begins with the Innovation Begins with the One PlanOne Plan

• Aggressively restructure the business

• Accelerate development of new products customers want and value

• Finance our plan

• Work together as on global team

January 2009

Brand PillarsBrand Pillars

January 2009

Global Product StrategyGlobal Product Strategy

• Bold, emotive exterior designs• Great to drive• Great to sit in

­ Comfort and convenience of a second home on wheels­ Remarkably quiet

• Fuel Economy as a reason to buy• Unmistakably a Ford or Lincoln in look, sound, feel

• All with exceptional value

January 2009

InnovationInnovation

January 2009

Keys to SuccessKeys to Success

• Understanding customer wants and needs• Focus on value and “democratization” of

technology• Rapidly deploy across all product offerings

to develop “Brand Signature” technologies• Rapid cadence of new/refreshed features

and offerings • Partner with key technology partners

January 2009

Brand PillarsBrand Pillars

Active Park AssistActive Park AssistActive Park AssistActive Park Assist

Active Park AssistActive Park AssistActive Park AssistActive Park Assist

Blind Spot MirrorBlind Spot MirrorBlind Spot MirrorBlind Spot Mirror

Blind Spot MirrorBlind Spot MirrorBlind Spot MirrorBlind Spot Mirror

Blind Spot DetectionBlind Spot DetectionBlind Spot DetectionBlind Spot Detection

Blind Spot DetectionBlind Spot DetectionBlind Spot DetectionBlind Spot DetectionFusion/Milan 41 MPGFusion/Milan 41 MPGFusion/Milan 41 MPGFusion/Milan 41 MPG

Fusion & MilanFusion & Milan41 MPG41 MPG

Fusion & MilanFusion & Milan41 MPG41 MPG

SmartGaugeSmartGaugeSmartGaugeSmartGauge

SmartGaugeSmartGaugeSmartGaugeSmartGauge

ECOBOOST ENGINESECOBOOST ENGINESECOBOOST ENGINESECOBOOST ENGINES

ECOBOOSTECOBOOSTENGINESENGINES

ECOBOOSTECOBOOSTENGINESENGINES

MyKeyMyKeyMyKeyMyKeyCollision MitigationCollision MitigationCollision MitigationCollision Mitigation

Consumer ReportsConsumer ReportsConsumer ReportsConsumer Reports

RDA Survey: RDA Survey: Ford ties Ford ties

Honda and Toyota Honda and Toyota

RDA Survey: RDA Survey: Ford ties Ford ties

Honda and Toyota Honda and Toyota

Battery Electric Battery Electric Vehicle 2010Vehicle 2010

Battery Electric Battery Electric Vehicle 2010Vehicle 2010 IIHS & NCAPIIHS & NCAPIIHS & NCAPIIHS & NCAP

January 2009

January 2009

ConnectivityConnectivityConnectivityConnectivity

January 2009

Consumer TrendsConsumer Trends

• Sync driven by Consumer Electronics Show and Consumer Electronics market trends

• Cell phone and media player growth and usage

• Digital music (MP3) sales growth and iPOD results

• Consumer interest in the ”audio input jack” for their vehicles

January 2009

January 2009

Partnering with MicrosoftPartnering with Microsoft

• Open, industry platform for software development– Large, available pool of developers– Compatible with key industry standards i.e.

USB, Bluetooth etc.

• Mutually beneficial relationship– Microsoft credibility in automotive– Ford access to Microsoft resources and

technology

January 2009

• Sync Availability12 Models in 2008, 9 more in 2009including:

– Focus– Fusion– Edge– Taurus– Explorer– Sport-trac– Flex– Milan– MKZ– MKX– MKS– MKT

January 2009

Launched Quickly and “Big”Launched Quickly and “Big”

• “First to market” with features and compatibility

• Large media campaign using website and digital media

• Building SYNC as a brand• Design and market as an “expandable

platform” unique to automotive• Launched on 12 vehicles for 2008 and 9

more for 2009

January 2009

CadenceCadence

Automotive Cycle Time Consumer Electronics Cycle Time

January 2009

SYNC CadenceSYNC Cadence

• “Platform” approach enabled development of new features fast - launched in less than 18 months

• Started “Version 2” features while “Version 1” was still launching

• Prioritized “Version 2” release on “no cost to customer” features

• “911 assist” and “Vehicle Health Report” demonstrate leverage of the software platform

• “V2” Announced 2 months after SYNC launch at 2008 CES and now shipping

• “Version 3” features announced January 2009 (CES) and will be available in spring 2009

January 2009

SYNC DeliversSYNC Delivers

January 2009

DemocratizationDemocratization

2008 Ford Focus 2009 Lincoln MKS

January 2009

Democratization of TechnologyDemocratization of Technology

• MP3 and iPOD trends strong in youth market• Affordability required efficient design and volume

manufacturing• Differentiation through Voice Recognition and

device compatibility• Offer on as many vehicle lines as possible

emphasizing a product available to everyone• Sync is offered at an affordable $395

January 2009

SYNC ResultsSYNC Results

• Will reach 1M units sold later this year

• SYNC equipped vehicles turn 2 times faster than non-Sync equipped units

• 31% of customers said SYNC influenced their purchase

January 2009

Brand PillarsBrand Pillars

Active Park AssistActive Park AssistActive Park AssistActive Park AssistBlind Spot MirrorBlind Spot MirrorBlind Spot MirrorBlind Spot Mirror

Blind Spot DetectionBlind Spot DetectionBlind Spot DetectionBlind Spot Detection

Fusion & MilanFusion & Milan41 MPG41 MPG

Fusion & MilanFusion & Milan41 MPG41 MPG

SmartGaugeSmartGaugeSmartGaugeSmartGauge

ECOBOOSTECOBOOSTENGINESENGINES

ECOBOOSTECOBOOSTENGINESENGINES

MyKeyMyKeyMyKeyMyKeyCollision MitigationCollision MitigationCollision MitigationCollision Mitigation

Consumer ReportsConsumer ReportsConsumer ReportsConsumer Reports

RDA Survey: RDA Survey: Ford ties Ford ties

Honda and Toyota Honda and Toyota

RDA Survey: RDA Survey: Ford ties Ford ties

Honda and Toyota Honda and Toyota

Battery Electric Battery Electric Vehicle 2010Vehicle 2010

Battery Electric Battery Electric Vehicle 2010Vehicle 2010 IIHS & NCAPIIHS & NCAPIIHS & NCAPIIHS & NCAP

January 2009

Democratization of TechnologyDemocratization of Technology

Ford will deliver a continuous flow of new, affordable and innovative features that customer’s want and will rapidly migrate them, not just on premium vehicles but across all vehicles where customers can benefit from the technology.

January 2009

Thank YouThank You