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Ford Motor Sample Profile Vision Wise Consulting March 2009

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Ford Motor Company Company profile
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Page 1: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Company profile

Page 2: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Ford Motor – Company profile

Summary

• SWOT Analysis

• Company Snapshot

• Industry

• Strategy

• Financial Performance

• IT Needs

• Details

2

Page 3: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Ford Motor – SWOT Analysis

3

• Liquidity advantage. In terms of liquidity, Ford isthe best positioned among the Detroit Big Three;

• No federal aid. The only Big Three company thatdoesn’t seek government aid;

• Hybrid technology. Ford holds his own hybridpatent technology.

Strengths

• Poor financial results. Registered a loss of $14.6bn y.o.y., the worst annual result in 105 years;

• High volatility of raw materials – increased costs of innovations.

Weaknesses

• High interest in innovation. Focus on development of new innovative features;

• Fuel efficient technology. Concentrate R&D activity on fuel-efficient and electric cars;

• Increase portfolio diversity. Extend small and medium lineup to better fulfill consumer demands.

Opportunities

• Data loss. Low protection against data loss;

• Increase level of layoffs or decreasing trend of employees wages may cause a sharper decline of consumer spending.

Threats

Page 4: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

o Incorporated in DE in 1919;oProducer of cars and trucks;oThe group operates in two segments:

automotive and financial services (financingvehicles);

oThe automotive segment sells vehicles underthe following brands: Ford, Lincoln, Mercuryand Volvo.

Company snapshot

4

Address:

One American Road,Dearborn, MI, 48126USAPhone: 313-322-3000 Fax: 313-845-6073

Employees in FY08

WW Employees (approx.) 213,000 (-13.4% y-o-y)

Address

9% 5.7%

4.9%

80%

Wellington Mgmt Co.Dodge & Cox Inc.Brandes Investment partners LPOthers

Data as of Sept 2008

Ownership

Activity overview

Click for details

Revenue in FY08

WW Revenue $146.277bn (-15.2% y-o-y)

o Alan R. Mulally, 64 y.o. – CEO since Sept 2006

o Lewis W. K. Booth, 61 y.o. – CFO since Nov 2008

o Nicholas J. Smither, 47 y.o. – CIO since Apr 2008

Key managers

Click for details

The other shareholders own below 4% of ordinary shares

88.3%

11.7%Revenue by business unit

Automotive

Financial services

49%

39%

13%

0%

20%

40%

60%

80%

100%

North America

Europe

All Other

Re

ve

nu

e b

y g

eo

gr

ap

hic

ar

ea

41%

5%11%

6%

19%

13%

Revenue by geographic area (detailed)

US Canada

Mexic UK

Germany Sweden

Other All other

Page 5: Ford Motor Sample Profile Vision Wise Consulting March 2009

Industry

5

Please note that this is a sample profile and that thefinal product is fully customizable. Additionalinformation on the industry status can be included onspecific regions, countries or a snapshot of the globalmarket. Also specific areas of IT can be pursued inmore detail.

Page 6: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Industry – Main trends

6

Strategic priorities for Ford MotorLegend:

US retailers’ initiatives for next period

• Focus on growing in emerging markets.Corporate actions:• High level of M&A and alliances is expected over

the coming five years.

Main challenges

Click on picture for more details

• Use of new, cost-efficient materials;• Design flexible manufacturing concepts;• Lower R&D costs by launching R&D offshoring

initiatives;• Decrease employees wages although it could

negatively affect auto sales;• Reduce budgets.

• Implement new wireless technology;• Key product innovation companies will invest more

R&D in fuel technology;• Increase production of environment-friendly cars;• Intensify innovation (in manufacturing processes and

materials technology).

Cost pressures:• Increased cost of innovations;• Stricter laws (emissions, fuel, safety);• Volatility in raw material prices;• Financial instability due to credit crisis lower

consumer confidence demand growth slows.

Differentiation areas:• Technology and innovation – key industry trends.

Page 7: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Industry – IT Trends

7

• US automakers outsource the IT work onshore or offshore, toareas of the world with lower labor costs or tax savings; lookfor more flexible outsourcing models;

• Companies seek to improve PLM capabilities;

• Automakers tend to create web presence through social mediaand online communities;

• Focus on innovation and high technology features;

• Implement RFID throughout the entire product lifecycleincluding showrooms;

• Companies tend to implement SOA systems.

• Build Shared Services departments;

• Companies are looking to increase IT costs transparency;

• Analytical CRM – integration of after sale, support, sales forceand marketing;

• MES/ERP – optimization of resource consumption on the shopfloor and vertical integration with engineering applications.

• Reduced IT budgets companies will belooking to optimize the sourcing mix andconsolidate IT vendors;

• Low level of security – frequent data lossincidents;

• Reduce application complexity replacelegacy applications with off the shelf or SaaS;

• Server consolidation, both physical and virtual;

• Less focus on full time business continuity,with a careful analysis of applications todetermine the ones which are suitable for thistype of service;

• Postponing of application migration (Vista,SAP);

• Customers will demand more flexible contractsfrom vendors.

IT trends for the US automotive industry

Opportunities Threats

Details

Source

Click for more details

Page 8: Ford Motor Sample Profile Vision Wise Consulting March 2009

Strategy

8

Please note that this is a sample profile and that thefinal product is fully customizable. Research can befocused on the company’s strategy in a specific region,country or the developments for a specific businessunit.

Page 9: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Strategy – Overview (1/2)

9

Click on picture for more details

• Cut-costs through computer-aided design and engineering;

• Improve vehicle quality – introducing smaller and fuel-efficient vehicles;

• Increase innovation by introducing features such as real-time traffic reports and turn-by-turn directions new safety features:

• MyKey – enables programming the limit of speed and audio volume (2010);• Collision Warning with Brake Support - new advanced collision-avoidance technology

(2009);

• Accelerate development of new products:• “One Ford” product development vision – small and medium sized Ford vehicles to compete

in global segments: North America, Europe and Asia by 2013;• Q409 started the production of 2010 Ford Fusion, Mercury Milan, Lincoln MKZ sedans;

Fusion and Milan – hybrid;• The launch of 2010 Ford Taurus and Volvo XC60 (spring 2009) expected to be a great success;

• Build safety leadership.

• Reduce number of suppliers from 1,600 today, to 750.

• Maintain low level of backlog orders;

• Change model mix:• Convert 3 US assembly plants from production of SUVs to small car production

approximately 50% of future capacities will be producing small medium sized vehicles;• Approx. all assembly plants will have flexible body shops (2012) enable quick response to

changing consumer needs.

SourceEngineering

Procurement

Manufacturing

Supply chain

Page 10: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Strategy – Overview (2/2)

10

• Downsize metropolitan dealers;

• Warranty repair costs decline – quality continues to improve.

Finance strategic plan and improve balance sheet• Reduce 10% of salaried personnel costs from North America;• Eliminate 2009 bonuses;• Reduce annual capital spending to $5bn-$5.5bn mainly due to reduced launch and advertising costs and increased labor

efficiency;• Reduce inventories globally;• Continue developing sources for Automotive funding.

Leverage global assets• Implement a global discipline business plan process in order to have a continuous and clear view over company’s activity:

strategy, risk & opportunities, financial results every employee implication and contribution is expected.

Source

• Mar 09 – Ford wants to increase its online presence with social media websites;– The Big Three close to wage parity as a result of the renegotiated UAW contracts.

2009 Main News

Source

Source

Supply chain

Sales

Customer Service

Supply chain

Company-wide strategic initiatives

Page 11: Ford Motor Sample Profile Vision Wise Consulting March 2009

Financial Performance

11

Please note that this is a sample profile and that thefinal product is fully customizable. Additional ratios,financial indicators and peer comparison can beincluded.

Page 12: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Financial Performance – Overview (1/2)

12

Indicator FY08 FY07 Y-o-y

Net sales ($m) 146,277 172,455 -15.2%

Net income ($m) -14,672 -2,723 -438.8%

Profit margin -10% -1.6% -8.4pp

ROA -6.7% -1% -5.7pp

Debt 154,196 168,787 -8.6%

Asset turnover 0.7% 0.6% -0.1pp

Indicator Q408 Q407 q-o-q

Net sales ($m) 29,192 44,116 -33.87%

Net income ($m) -5,976 -2,811 -112.6%

Profit margin -20.5% -6.4% -14.1pp

So

urc

e: C

om

pa

ny

da

ta ;

Reu

ters

Fiscal Year: Dec 07 – Dec 08

Key figures and key ratios

-6.7%

-26.0%

1.3%1.4%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

ford gm chrysler

ROA

Industry average (ROA)

ROA comparison (FY08)

Click on picture for more details

Sa

les

gro

wth

Ind

ust

ry a

ver

ag

e -7

.2%

FordGM

Chrysler

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

-25% -20% -15% -10% -5% 0% 5%

Net profit marginIndustry average 1.8%

Sales growth (FY08/FY07) and Net profit margin (FY08)

Click for ratings

So

urce: C

om

pa

ny

da

ta; R

euters

The annual revenues were affected by the weak economicgrowth registered in 2008; consumer and businessspending has decreased sharply in the forth quarter.

Page 13: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Financial Performance – By Business Unit (2/2)

13

Indicator

Au

tom

oti

ve

FY08 FY07 y-o-y

Fin

an

cia

l S

er

vic

es FY08 FY07 y-o-y

Net sales ($m) 129,166 154,379 -16.3% 17,111 18,076 -5.3%

EBIT ($m) -11,823 -4,970 -137,9% -2,581 -1,224 -110,9%

Profit margin -9.2% -3.2% -6pp -15.1% -6.8% -8.3pp

ROA -16% -4.2% -11.8pp -1.7% -0.7% -1pp

Source: Company data

Key figures and key ratios

Indicator

Au

to

Q408 Q407 q-o-q

Fin

Q408 Q407 q-o-q

Net sales ($m) 25,259 39,373 -35.8% 3,933 4,743 -17.1%

EBIT($m) -4,766 -4,741 0.5% -384 269 -242.8%

Click on picture for more details

Global crisis and industry seasonality made the last quarter results the lowest of the year.

Both sectors registered low performances and are expected to continue this trend for the first half of FY09

Page 14: Ford Motor Sample Profile Vision Wise Consulting March 2009

IT Needs

14

Please note that this is a sample profile and that thefinal product is fully customizable. More in depthresearch can be performed on specific areas of IT.

Page 15: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

• Chose Siemens PLM Software to provide PLM solutions;

• Uses UGS’s digital lifecycle management solution;

• Selects Quantum3D to upgrade its VIRtualTest Track EXperiment(VIRTTEX) Driving Simulator;

• Covisint provides Ford Supplier Portal;

• It is equipped with computing prototypes(CT), radiography and rapid prototype capabilities;

• Uses RFIDtechnology;

• Accelerates products development with BDTC ;

• CNC machine tools provided by Spinner;

• Agreement with MSC.Software;

• The industry first Paint and Body Technology Center;

• Ford Work Solutionsinnovative website of productivity solutions;

• Reynolds and Reynolds for its Sales point solution;

• SAS platform supports CRM;

• VIMS from WhereNetCorp.;

• Long term contract with Data Mining Group;

• Wireless RoninTechnologies for the Ford SYNC technology;

• Tellme provide voice technology;

• Ford Customer Service Division;

• New GPS navigation software from TeleNav.

• Chose SynQuest e-business software to minimize order-to-delivery time and improve supply chain performances;

• Implemented a Wireless Real-Time Locating System (RTLS) provided by WhereNet Corp..

Automotive IT Landscape (1/2)

15

Click on picture for more details

Engineering Procurement Manufacturing Sales Customer Service

Page 16: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

• Chooses PeopleSoftEnterprise Financial Management Solutions to standardize and streamline global financial business process;

• N/A • Mobile video ad campaign offered by Transpera;

• Informative mobile site of Ford Flex powered by Quattro Wireless – for Smartphones users;

• Online advertising initiatives of 2007-2008 Lincoln Mercury powered by Specific Media;

• Renews contract with TechTeam to provide support services for IT infrastructure;

• Chose Polk Roadtodata to provide real-time market data and intelligence to all brands within Ford;

• Storage virtualization (over 2Pb of data) using IBM;

• Its Terradatawarehouse contains approximately 1.6 Terrabytes of data on more than 33 million customers.

• Uses Dell Power Edge servers;

• Desktops from Dell;

• Uses Lexmark printers.

Automotive IT Landscape (2/2)

16

• Apply GPDS Engagement Process to 2011 Engine programs.

• N/A • N/A • N/A • N/A

Automotive IT PlansEngineering Procurement Manufacturing Sales Customer Service

Horizontal functions

Dealer back officeITMarketingHRFinance

Page 17: Ford Motor Sample Profile Vision Wise Consulting March 2009

Details

17

Page 18: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Key managers (1/2)

18

Education: University of KS – bachelor and master of science degree in aeronautical and astronauticalengineering; MA Institute of Technology – master in management (1982);

Work experience: Prior to joining Ford, he was executive VP of Boeing Company and Presidentand CEO of Boeing Commercial Airplanes. Joined Boeing in 1969. Former President of theAmerican Institute of Aeronautics and Astronautics (AIAA).

Other: Member of the US National Academy of Engineering, fellow of England’s Royal Academy ofEngineering.

Alan R. Mulally, 64 y.o. – President and CEO since Sept 2006

Education: Liverpool University – bachelor or engineering with honors in mechanical engineering;

Work experience: Started his career at British Leyland. Joined Ford in 1978 as financial analyst inProduct Development (Europe). As CFO, he is responsible for the company’s financial operations,including the Controller’s Office, Treasury and Investor Relations. Prior to this, he was EVP for Ford,responsible for Ford Europe, Volvo Car Corp. and Ford Export Operations & Global Growth Initiatives.

Other: Born in Liverpool; the sun of a Ford, Austin and Morris dealer.

Lewis W. K. Booth, 61 y.o. – EVP and CFO since Nov 2008

Education: Loughborough University (UK) – master’s degree in Advanced Automotive Engineering;

Work experience: Joined Ford in 1980 as an engineer in Product Development for Ford of Europe; in1983 moved to IT as system analyst; in 1995 was relocated to US to lead the IT integration of SouthAmerican locations as part of Ford 2000.

Nicholas J. Smither, 47 y.o. – VP and CIO since Apr 2008

Back

Click on picturefor more details

Click on picturefor more details

Click here formore details

See more managers on next slide

Page 19: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Key managers (2/2)

19

Education: Holds MBA from Duke University’s Fuqua School of Business (1999-2001) and BS incomputer science at Massachusetts Institute of Technology (1991-1995);

Work experience: Held several jobs at Ford including those in the areas of IT Security and Controls,In-Vehicle Software and Vehicle Quality systems. Prior to joining Ford he was consultant at Ernest &Young LLP and Headstrong.

Vijay Sankaran – Director of Infrastructure Operations since Oct 2006

Back

Click on picturefor more details

Bill Ford Jr. –Executive Chairman

Page 20: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Business units

Automotive sector:

• Is engaged in manufacturing and selling of cars and trucks throughout the world.

• The company’s vehicle brands are: Ford, Mercury, Lincoln, Volvo, Jaguar and Land Rover.

• Its US market share followed a decreasing trend in the last five years, in 2008 reaching the lowest

value of 14.2% .

Cars - Cars are classified by small, medium, large and premium segments;

- US market share increased 0.4 p.p. y-o-y to the value of 5% registered in 2008.

Trucks - Trucks are classified by compact pickup, bus/van, full-size pickup, SUV/CUV (sport or

crossover utility vehicles) and medium/heavy segments;

- US market share decreased 0.8 p.p. y-o-y to the value of 9.2% registered in 2008.

Financial Services sector:

• Provides retail and wholesale financing services to customers and dealers of Ford Motor products;;

- Ford Motor Credit Company is also know as captive finance company*;

• In US and Canada, it does business through automotive dealer financing branches;

• Its main automotive financing products are classified as follows:

- Retail financing;

- Wholesale financing;

- Other financing.

Business units

20

Back

*A subsidiary whose purpose is to provide financing to customers buying the parent company's product; term usually used in the automotive industry.

Page 21: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Industry – Overview (1/2)

21

Automotive industry in US

Overview • The world’s largest auto market by annual sales;• Represents a key component of the US economy;• Many other industries have high dependence on this sector: petroleum, banks, insurance,

raw materials the largest purchaser of iron, steel, plastic copper, aluminum, electronics;• US industry sales volume decreased to 13.5 million of units (7.1m of cars and 6.4m of trucks)

in 2008, with a CAGR of -4.85% since 2004;• Auto industry ran between 16-17 million units for almost 8 years it is expected to drop in

2009 to no more than 14m units;• Dramatic decline in US industry sales volume continues in 2009:

• Feb 2009 – all US automakers decreased more than 37%;• Fitch expects sales to continue to fall sharply in 2009;

• Average vehicle age in US is going up every year it approaches 9-10 years;• Credit crisis consumer spending decreases consumers see fuel efficiency more

important than product quality;• Profitability is volatile and unpredictable for the next period.

Negatively affected by the global crisis

Source

Light Vehicle Sales Evolution

Back

See more on next slide

Page 22: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Industry – Overview (2/2)

22

Automotive industry in US

Cost pressures • Volatility in raw materials – oil prices;• Increased competition due to foreign manufacturers (competition is centered on price and

length of contract);• According to NADA (National Automobile Dealers Associations) market share

continues to shift in favor of Japanese and Korean brands;• Fitch estimates the trend will continue due to the financial strength of foreign

manufacturers;• Low automotive industry liquidity;• Tougher standards for fuel efficiency and stricter tailpipe emissions;• By 2020 US will shift from oil tax to mileage-based usage fee;

• After years of investment in fuel-efficient vehicles, it will not represent a significantcompetitive advantage anymore;

• Automakers will have to redesign their R&D investment.

Corporate actions • Highly competitive market, cyclical business US Big Three automakers: General Motors,Ford and Crysler;

• Despite increased consolidation of the automotive industry anticipated by analysts, M&Aactivity decreased;

• Companies expect the rate of bankruptcies to rise (Chapter 7 bankruptcy);• Tier 1 suppliers will see most bankruptcies;

• After receiving $17.4bn federal aid, GM and Crysler asked for $5bn more;• Nearly 3m layoffs will take place in the first year if the auto industry collapses;

• Toyota requests $2bn loan from Japanese government;• GM is expected to sell its Hummer brand;• Crysler plans to sell the Dodge Viper model line.

Many companies expected to face liquidations

Source

Back

Source

Page 23: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Industry – US Light vehicle Sales

23

Back

Page 24: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Industry – IT Trends – PLM integration

24

Source: White Papers

Back

Page 25: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Strategy – General directions

25

Restructuring plans

• Main objective – return to profitability in 2011:

• Eliminating bonuses for the second consecutive year;

• Suspend cash compensation for board members;

• The two CEOs announced they will voluntarily take 30% reduction in salary for 2009 and 2010;

• Reduce total debt by offering premiums to debt-holders who shift to convertible notes;

• Save up to $600m in interest expense;

• Reorganize three North American truck plants to produce small, fuel efficient vehicles – Relocate the production of B-car and C-car platform vehicles in North American plants;

Reduce costs

• Use analytical tools to determine the vehicle’s configuration that best suites customers in different regions – cut backslow-selling combinations – Vehicles equipped with “Rapid Spec” package;

• Fewer already build combinations – reduce manufacturing costs;

• Continue to produce and ship products within approx. 20 days after a firm order is placed – no backlog;

• Simplify order process;

Differentiation

• Deliver best-in-class with every new vehicle launched – uses EcoBoost engines;

• $14 bn investment in high-technology to improve fuel economy over the next 7 years;

• Launch hybrid vehicles until 2012: plug-in hybrids and battery electric vehicles – At least 4 new electric vehicles to belaunched in the next 4 years;

• Upgrade Ford, Lincoln and Mercury lineup by 2010 and increase safety features;

• Continue to expand the small and medium lineup so that consumer have more alternatives when buying a car;

• Increase entertainment connection features in car that cannot disturb the driver’s attention from the road;

• Continue to invest in “One Ford” product plan;

• Better analyze consumers needs.

General strategic direction

Source

Back

Source

Details

Details

Page 26: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Strategy - General directions - Details

• 2010 Ford Taurus• America safest full-sized car

• 2010 Shelby GT500• Mustang family

• 2010 Lincoln MKT• Premium luxury vehicle

26

Michigan Track Plant

SUVs: specific

Expedition and Navigator

Global

C-car

Kentucky

Truck Plant

Current plant Current activity Future activity Future plant

Launch of new models

Relocation

Back

Page 27: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Strategy – General directions - Details

27

According to a KPMG survey, fuel efficiency, quality and affordability are the most important criteria that influence consumers decisions when buying a new car.

Back

Page 28: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Financial Performance – Financial Status

28

Revenues

• Results from all operations declined over previous year because of the economic recession. However, cost reductionsmanaged to partly offset these declines;

• In terms of both profit margin and growth sales, Ford is far below the industry average;

• Of all US Big Three, Chrysler has the highest results; its profit margin follows industry trends and its growth sales areabove industry average;

• Ford, Lincoln and Mercury gained market share for three month consecutively (Oct, Nov, Dec 08), reaching 14.2%.

Income

• Even if it registered a loss of $14.6bn, the worst annual result in 105 years, it considers itself the healthiest company of allDetroit automakers it is the only company that will finance its operations without federal aid;

• Ford managers said it will need the aid only if one of its two main competitors will go bankrupt;

• It currently has more cash on hand than its competitors, but this is the result of the late 2006 financing actions- mortgage total assets, including the blue logo;

• It has about $15bn cash in hand.

ROA

• Ford’s ROA fell slightly below the industry average of 1.4% ;

• Chrysler has the highest ROA of all peers, very close to the industry average.

Debt

• The company has sufficient funds to finance business plan and product investments.

Financial status

Back

Details

Page 29: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Financial Performance – By Business Unit

29

Automotive sales decreased by 16.3% y-o-y;

• This sector’s revenues are generated mainly from sales of vehicles to dealers and distributors;

• A major part of vehicles produced are subject to firms orders;

• It also produces cars for use in own fleet and for daily car rental companies registered as operatingleases;

• In 2008, total ongoing automotive operations sold approximately 5,407,000 vehicles at wholesalethroughout the world;

• Automotive sector sales declined mainly because of the US recession an unfavorable outlook isexpected for the next period;

• Reduced costs with $1.4bn in Q408;

• Ended 2008 with $24bn available automotive liquidity.

Financial Services sales decreased by 5.3% y-o-y;

• Revenues are generated primarily from interest on finance receivable and from operating leases;

• It finances most of the vehicles sold to dealers and distributors;

• Ford’s financial sector was negatively affected by the current economic conditions and the creditcrisis;

• In US, Ford Credit continues to restructure operations and reduce personnel.

Financial performance - BUs

Back

Page 30: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Financial Performance – Revenues

2004 2005 2006 2007 2008

US Ford US Ford US Ford US Ford US Ford

Cars 44.50% 28.60% 45.40% 31.50% 47.20% 36.70% 48.20% 31.50% 52.30% 35.10%

Trucks 55.50% 71.40% 54.60% 68.50% 52.8% 63.30% 51.80% 68.50% 47.70% 64.90%

Total 100%

30

35.1%31.5%36.7%31.5%28.6%

64.9%68.5%63.3%68.5%71.4%

20082007200620052004

Ford US sales by segment

Trucks

Cars

• Prior to 2005, US industry truck sales followed an increasing trend, but in the last years it started to reverse.• In 2008 Ford’s small car segment sales were larger then the previous year due to the strength of the redesigned Focus model;• 2009 industry sales are expected to weaken because consumer and business spending has sharply decreased.

US Industry vehicle sales vs. US Ford vehicle sales by segment

Back

Page 31: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Financial Performance – Rating Agencies

31

Fitch Moody’s S&P’s

Ford GM DAI Ford GM DAI Ford GM DAI

LT CCC C BBB+ Caa3 Ca A3 CC CC A-

ST NR* NR* F2 SGL-4** SGL-4** P-2 NR* NR* A-2

Outlook NegativeRating

Watch OffStable Negative Negative Negative Negative Negative Negative

Back

*NR – not rated; **SGL-4 – Speculative Grade Liquidity Rating

Page 32: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Industry – IT Trends

32

Back

Global crisis impact in 2009

Automotive industry – areas of investment

The industries that are most affected by theglobal economic downturn are: automotiveand banking, especially investment banking.

For the next period, auto industrywill invest more in development ofsales standards and productimplementation.

So

urce: P

ierre Au

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sulta

nts

Page 33: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

IT Needs – Recent Deals

33

• 2009 Mar – Together with Beech Daly Technical Center (BDTC), it provides technology tools to accelerate productdevelopment;

• 2009 Mar – Continues agreement with MSC. Software to provide standard simulation tools;

• 2009 Jan – Selected Tellme to provide voice technology to Ford’s new SYNC Traffic technology;

• 2009 Jan – Uses new GPS navigation software from TeleNav;

• 2008 Jul – Chose Quantum3D to build its virtual engineering and safety leadership: upgraded its VIRtual Test TrackEXperiment (VIRTTEX) Driving Simulator;

• 2008 Jul – CNC machine tools provided by Spinner;

• 2008 Jul – It is equipped with computing prototypes (CT), radiography and rapid prototype capabilities;

• 2008 Jan – Chose Wireless Ronin Technologies to implement Ford SYNC technology;

• 2007 Sept – Selected Polk Roadtodata to provide real-time market data and intelligence to all brands within Ford;

• 2007 – Implemented Vehicle Inventory Management System (VIMS) from WhereNet Corp.;

• 2006 Apr – Selected UGS Corp. to deploy in-vehicle software data enables Ford to leverage its global innovationnetwork;

• 2006 May – FordDirect selected Reynolds and Reynolds to continue its Sales point solution;

• Chooses Siemens PLM Software to provide PLM solutions for in-vehicle software;

• Uses RFID technology;

• SAS platform supports CRM;

• The industry first Paint and Body Technology Center;

• Works with Data Mining Group for close to ten years it has provided Ford with services in the areas of quality,customer satisfaction and warranty analytics;

• Ford Work Solutions – innovative website of productivity solutions;

• Ford Work Solution from DeWalt uses RFID technology to track tools and equipment.

IT deals

Back

Page 34: Ford Motor Sample Profile Vision Wise Consulting March 2009

Ford Motor Company Profile, Mar 2009

Sources

34

• AR 2008

• http://en.wikipedia.org/wiki/Effects_of_the_2008-2009_automotive_industry_crisis_on_the_United_States

• http://www.autobloggreen.com/2009/02/09/ford-confirms-transit-connect-ev-with-smith-electric-for-2010/

• http://media.ford.com/images/10031/4Qfinancials.pdf

• http://www.automotiveit.com/

Page 35: Ford Motor Sample Profile Vision Wise Consulting March 2009

Contact:Carmen.Patrascu @ visionwise.ro

Dragos.Enescu @ visionwise.ro


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