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Ford Motor Company Announces Consumer-Focused Organization For the 21st Century

18 October 1999

Ford Motor Company Announces Consumer-Focused Organization For the 21st Century
    DEARBORN, 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.