Strategic Approach for Electrification June 27, 2019 Creating Tomorrow, Together
Our Freedom of movement drives human progress. Belief
Our To become the world’s most trusted company, Aspiration designing smart vehicles for a smart world.
Passion for Product & Deep Customer Insight Our Plan for Value Creation Winning Propulsion Autonomous Mobility Portfolio Choices Technology Experiences
Fitness Metrics Operating Leverage Growth Build, Partner, Buy EBIT Margin Capital Efficiency ROIC Strong Balance Sheet Cash Flow
Our People Culture & Values Our Strategic Approach For Electrification Focuses On Building A Foundation For Long Term Success
Play To Our Strengths Commercial, Trucks, Utilities, Performance
Building on our iconic nameplates; amplify Build Brand & Credibility attributes our customers love best
Design, volume, manufacturing Leverage Scale & Technology and purchasing power
Develop an ecosystem that makes the Business Model Innovation transitions to BEV lifestyle easier SECRET 3 Fitness Redesign Core Initiatives
Customer Speed & Simplicity Efficiency Centricity Agility Blueprint-enabled Product-driven IT Hours Per Unit Next-generation Yield management demand org. living the reduction manufacturing management desired culture Advertising & Sales Global Capex reduction PD footprint & Promotion Complexity Order-To-Delivery through reuse capacity design rapid prototype Digital marketing Manage complexity optimization Modular architecture Manufacturing & lifecycle footprint Best cost at Job 1 management optimization Collaborative media Complexity optimization governance Freight Full-Network Agile GPDS Sourcing
Smart Redesign
Enterprise Product Line Management
Skill Team Lead: IT Manufacturing Marketing & Sales PD / Purchasing Cross functional SECRET 4 Source: Ford Motor Company presentation at the Barclays Global Automotive Conference, November 14, 2018 Expected PD Fitness Impact Over 5 Year Plan Period
~$7B 20%+ ~$1B Engineering / Less Time Manufacturing ~$12B Improved PD Cost From Sketch Cost Material Cost Reduction To Showroom Reduction
Fitness Targets Are Embedded In Our Business Plans
5 Source: Ford Motor Company presentation at the JP Morgan Auto Conference, August 8, 2018 Implementing Five Flexible Architectures
Customer Architecture Differentiators Flexible Architectures
Consumer ICE*: RWD / AWD Experience 1 Body-On-Frame Energy
ICE*: FWD / AWD Regulatory 2 Requirements Unibody
ICE*: Commercial 3 Propulsion / Drive Van Unibody
ICE*: RWD / AWD 4 Unibody
BEV: All drive 5 Body / Frame types Unibody
* BEV capable
Global Architectures Coupled With Modular Designs Support High Product Differentiation While Delivering High Reuse And Scale Savings
6 Source: Ford Motor Company presentation at the JP Morgan Auto Conference, August 8, 2018 We Are Bringing A Number Of Fully Electric Vehicles To Market In The Future
Mustang-inspired BEV SUV Ford Territory BEV with 300 mile range in 2020 for China in 2019
Ford Transit BEV for Europe Ford F-150 BEV Partnership Product
SECRET 7 We Are Deploying World-class Hybrid Technology
Hybrid (HEV) HEV & PHEV Plug-in Hybrid (PHEV)
F-150 Escape / Kuga Aviator Corsair
Police Interceptor Explorer Territory 1-Ton Transit (China) (Europe) High-volume, Profitable Vehicles Like F-150, Explorer And Escape Will Bring Great Capability And Features To Customers
8 Internal Combustion Spending Will Be Re-deployed Into Electrification For Future Demand
Internal Combustion Engine Architectures
17
12
29% Decline
2016 2022
SECRET 9 Source: Ford Motor Company CEO Strategic Update, October 3, 2017 xEV Commodities Make / Buy
PHEV BEV Product Sourcing Product Sourcing
Commodities: Current PHEV Future PHEV Future BEV
• Battery Pack
• Motor /
• Gears /
• Battery Array /
• Battery Cell /
• Power Electronics
In-house Outsource Partner
SECRET 10 Q&A