Ford has announced a realignment of its North America product development organisation into four platform groups that will be responsible for sets of like vehicles. Previously, product development was organised around five brand-oriented groups.
Go deeper with GlobalData
Ford says that the changes will speed product development, cut costs and bring quality improvements. Ford also said that the change would mean increased new-product introductions – with more than 65 new Ford, Lincoln and Mercury products in the next five years.
The changes involve more flexible vehicle platforms as well as increased commonality and standardisation of components and processes. Ford estimates that in total, this will help Ford achieve a 10 percent annual product development productivity improvement and a 25 percent reduction in the number of platforms in North America by 2010.
“These changes are part of our efforts to accelerate the pace of our product-led recovery,” said Jim Padilla, executive vice president, Ford Motor Company, and president, North America.
“We’ve worked for the past few years on reinventing our product development system. Today’s realignment is another major step in the right direction,” Padilla added.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFord’s North America product development will be organised into four platform groups:
Small FWD/RWD: Ford Focus, Ford Mustang, Ford Freestar, Mercury Monterey, new Mercury SUV and next-generation Lincoln cars;
Medium/Large FWD/AWD: Ford Taurus, Ford Five Hundred, Ford Freestyle, Mercury Montego and all-new Ford, Mercury and Lincoln cars;
SUVs and Body-on-Frame: Ford Escape, Ford Escape Hybrid, Ford Explorer, Ford Explorer Sport Trac, Ford Expedition, Ford Excursion, Ford Crown Victoria, new Mercury small SUV, Mercury Mountaineer, Mercury Grand Marquis, Lincoln Aviator, Lincoln Navigator, Lincoln Town Car, Lincoln LS and all-new Ford SUVs Pickup Trucks and Commercial Vehicles: Ford Ranger, Ford F-Series, Ford E-Series.
Ford also said that by moving to more flexible, common platforms, it will be able to introduce new, derivative products at lower cost in the future – including several all-new Ford, Lincoln and Mercury products not yet announced.
Ford said that product development times would be reduced by approximately 25 percent.
Ford is establishing an enhanced Product Development Quality organisation to complement the improved engineering approach. A single quality director will ensure a consistent approach to quality throughout the entire product development process.
Ford said that the moves will not affect employment levels among the North American product development organisation, but some workers will have different reporting structures as a result of the realignment.
Ford said that the changes within product development and the emphasis on common flexible platforms build on a major investment in Ford’s manufacturing facilities. Ford is installing a new flexible manufacturing system throughout its North American assembly operations.
The company says that the new flexible manufacturing system will allow the company to respond more quickly to changing customer demand with faster changeover and significant cost-savings. Ford hopes that the all-new, next-generation flexible manufacturing system in assembly operations will save $1.5 billion to $2 billion during the next decade because of standardised processes and components.
Ford’s new Dearborn Truck Plant at the Rouge Centre in Dearborn, Mich., will be the most flexible plant – with the capability of producing nine models off three platforms. The other North American assembly plants will be able to produce eight models off two platforms.
Approximately half of the company’s bodyshops, final assembly and chassis areas will be flexible by mid-decade, with 75 percent of the plants flexible by about 2010.
