Ford Motor Company Announces Consumer-Focused Organization For the 21st Century
18 October 1999
Ford Motor Company Announces Consumer-Focused Organization For the 21st CenturyDEARBORN, Mich., Oct. 15 -- To help achieve its vision of becoming the world's leading consumer company for automotive products and services, Ford Motor Company is establishing strategic business units that complement the company's global scale and structure. "We are passionate about serving our customers better," said Jac Nasser, president and chief executive officer. "Our new strategic business units are consumer-focused and shareholder-driven. They build on the strengths of Ford 2000 by adding a brand and regional influence that will allow us to better connect with consumers. It is an evolutionary change that will improve the way we manage our business." "This alignment will give Ford Motor Company the strategic flexibility it needs to build on its strength into the next millennium," said Bill Ford, chairman, Ford Motor Company. "We're putting the leaders and structure in place to take the company to the next level." Consumer-Focused Organization Beginning Jan. 1, 2000, Ford will establish strategic business units to more closely target consumers' needs and react quickly to changing market conditions. Four business units will focus on the Ford brand, including Ford North America, Ford Europe, Ford Asia Pacific and Ford South America. The Ford North America business unit will include Ford Car, Ford Truck, Ford Division, Ford Canada and Ford Mexico. The Premier Automotive Group will have separate global strategic business units: Jaguar; Aston Martin; Volvo; and Lincoln and Mercury. There will be four business units that continue to focus on Ford's automotive service brands: Ford Credit; Hertz; Customer Service; and Ford's new global enterprise responsible for e-business initiatives and FIECO. In addition, Mazda and Visteon will operate as global business units. Passion For Serving Customers "These changes are more about how we work together to get closer to consumers than a change in our organization chart," Nasser said. "What we really want to achieve is a business philosophy that empowers teams to closely focus on consumers. These changes better align our work with our vision." The business units will have key metrics and new systems to develop a deeper understanding of consumers' needs. They will have the tools to measure consumers' experiences with the company's products and services, and the resources and strategic alignment to determine how best to anticipate and satisfy consumers' needs and deliver shareholder value. "I've said that it's our aspiration for all Ford employees to develop a 'consumer headset' -- a real feeling for what people want today and in the future," said Nasser. "Strategic business units organized around brands and regions will help move the company forward by creating a culture that focuses on every point of contact with the consumer." Building on Ford 2000 Principles Under Ford 2000, the company's strategy to leverage global economies of scale and streamline global business processes, Ford increased its product offerings, improved quality and productivity, reduced total costs by more than $5 billion and achieved 13 consecutive quarters of improved profits. "Strategic business units allow Ford to preserve the strengths of Ford's global scale and collective knowledge while creating smaller, more agile business units," said Nasser. "They will allow Ford to consistently deliver innovative products and services that delight customers by focusing on brands and consumer needs. These enterprises will drive performance and accountability further down into the organization, streamline processes and behaviors and create career paths for future business leaders." There will continue to be global organizations for product development and quality, manufacturing, purchasing, marketing and other functional organizations. They will manage global priorities, processes, platforms and technology resources and maximize global efficiencies. Leadership for the Future To support the consumer-focused organization, Nasser announced a number of new leadership appointments for the strategic business units and the global centers of excellence. The appointments are effective Jan. 1, 2000, and include: * Carlos Mazzorin, group vice president, Global Purchasing and South America * Robert L. Rewey, group vice president, Global Consumer Services and North America * Henry D. G. Wallace, group vice president and chief financial officer * Gurminder S. Bedi, vice president, North America Truck * William W. Boddie, vice president, Global Core Engineering * Terry M. de Jonckheere, vice president and president, Ford South America * I. Martin Inglis, vice president, Ford North America * Vaughn A. Koshkarian, vice president, Ford Asia Pacific * Martin R. Leach, vice president, Product Development, Ford Europe * Shamel T. Rushwin, vice president, Vehicle Operations * Nick Scheele, vice president and chairman, Ford Europe * Chris P. Theodore, vice president, North America Car * David W. Thursfield, vice president and president, Ford Europe * Al P. Ver, vice president, Advanced Manufacturing Engineering Other corporate officers remain in their current positions. "The leadership team will work together to execute our vision and strategy, and the day-to-day decision-making will be pushed deep into the operations," Nasser continued. "We're going to combine the resources and efficiencies of a large, successful company with the speed and responsiveness of small enterprises. Our customers, dealers, shareholders and employees will be the winners. "We're confident that the changes we're making will create a more consumer-focused environment that gives Ford Motor Company employees the autonomy to determine how best to meet our customers' needs while meeting our business objectives," said Nasser.