Ford Expects to Finish 2000 With Record Growth
21 December 2000
Ford Expects to Finish 2000 With Record Growth
DEARBORN, Mich., Dec. 20 Ford Motor Company
expects to report record sales in 2000, capping a year of strategic growth,
enhanced shareholder value, new products and real commitments to the
environment.
Solid progress was made toward improving customer satisfaction through the
use of Six Sigma quality improvement practices and new Blue Oval dealer
certification standards. Several e-business initiatives were launched,
including the Wingcast telematics joint venture and Covisint online supplier
exchange.
"When you look back on 2000 it was a very strong year for us in terms of
improving our financial strength, new product launches and a total team effort
from our people," said President and CEO Jacques Nasser. "We've got the best
brands we've ever had and a great product line-up, which we expect to lead to
record sales."
Despite the setbacks of the Firestone tire recall, completed eight months
ahead of schedule, Ford maintained its focus on becoming the world's leading
consumer company for automotive products and services.
"Our commitments to improving SUV fuel economy, transforming the Rouge
complex and publication of our first Corporate Citizenship report have raised
the bar in 2000 on what it means to be a responsible corporate citizen in the
21st Century," said Chairman Bill Ford.
Shareholder value was a key theme for the year. The Value Enhancement
Plan returned $5.7 billion in cash and stock to shareholders. Auto supplier
Visteon Corp. was spun off, with Ford shareholders receiving one
Visteon share for approximately eight shares of Ford.
Ford's Board of Directors approved a $5 billion stock repurchase plan and
a 5 percent quarterly dividend increase, after adjusting for the Value
Enhancement Plan.
During 2000 Ford reached its 17th consecutive quarter of increased
operating earnings, buoyed by fresh, popular products and record sales in
North America. Third quarter profits would have been another record, but were
held back by costs associated with the Firestone tire recall.
The Internet and e-business initiatives continued to transform how Ford
operates internally and externally. Ford set new corporate standards for
wiring employees to the Internet by offering a personal computer, color
printer and Internet access for $5 a month to all eligible employees. The
company forged alliances with technology partners including Yahoo and Trilogy
Software. Ford Division dealers, working with Ford Motor Company, launched
FordDirect.com , a way for customers to buy Ford brand cars and trucks online.
The Wingcast joint venture with Qualcomm Inc. will provide consumers with
new safety and security features, in-vehicle wireless communication and
Internet-based information, navigation and entertainment.
On the product side, Ford continued to introduce new vehicles such as the
Explorer Sport Trac that respond to consumers' diverse lifestyles and needs.
The Ford Windstar earned five-stars in crash tests conducted by the U.S.
government, the highest safety rating available.
Escape, the newest member of Ford Division's sport utility family, went on
sale this summer. Ford introduced the Neiman Marcus Edition Ford Thunderbird,
which sold out in two hours and 15 minutes. The Ford Focus climbed its way
into the world's top-selling passenger car, while earning driver accolades.
In voting by independent automotive journalists, the Focus was the first car
to be named Car of the Year in both North America and Europe.
Several 2002 models also were debuted, including the Ford Explorer,
Mercury Mountaineer and Lincoln Blackwood.
This past year saw a new member added to Ford Motor Company's automotive
luxury brand portfolio with the purchase of Land Rover from the BMW Group.
Land Rover joined Jaguar, Volvo, Lincoln and Aston Martin as the brands that
form the Premier Automotive Group.
Jaguar released the new name for its upcoming compact sports sedan, the
X-TYPE, while Volvo debuted its new S60 sedan, which won the Golden Steering
Wheel award.
Ford made real strides on its commitment to the environment. By 2005,
Ford will improve the fuel economy of its SUV fleet 25 percent. It announced
plans to lay the groundwork to transform the 83-year-old Rouge Center, one of
the world's largest and oldest industrial icons, into a 21st Century model of
sustainable manufacturing with world-class vehicle assembly flexibility. Ford
also introduced the Focus FCV, the world's first production-prototype, direct
hydrogen powered fuel cell vehicle.
The year saw the unveiling of the Ford Motor Company trustmark as the new
corporate signature for the expanding portfolio of brands and values they
represent. To signify the change, Ford replaced the blue oval logo on the
headquarters building with the new trustmark script.
Ford launched a major restructuring of European operations to drive the
region back to profitability and strong, sustained growth. The changes will
improve Ford's competitiveness, cut overcapacity and result in the launch of
45 new products over the next five years.
In Asia, Ford was selected as the preferred bidder for Daewoo Motor of
South Korea. But after more detailed review, Ford decided not to make a final
acquisition offer.
Ford Motor Company is the world's second largest automaker, with
approximately 335,000 employees in 200 markets on six continents. Its
automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln,
Mazda, Mercury and Volvo. Its automotive related services include Ford
Credit, Quality Care and Hertz.