Ford 2009 Annual Report Download - page 20

Management’s Discussion and Analysis of Financial Condition and Results of Operations
18 Ford Motor Company | 2009 Annual Report
Ford Europe. Based on the strength of its product portfolio, Ford Europe improved its 2009 full-year market share to 9.1%
in the 19 European markets we track, a 0.5 percentage point increase versus 2008 and its best market share since 1998.
Fiesta was the second best-selling model in Europe in 2009, reaching its best full-year sales since 1996. One year after its
debut, more than 600,000 customers have purchased the new Fiesta globally. In 2010, we will continue to build on our
product momentum, entering one of the most prolific periods of new product and technology introductions in Ford Europe's
history. With 6 vehicle product actions planned for 2010 – including the new Ford C-MAX and Grand C-MAX, and the
freshened Ford Galaxy, S-MAX and Focus – Ford Europe is poised to build on the successful introductions of the Ford Ka
and Ford Fiesta. An expanded range of fuel-efficient powertrains, including the new EcoBoost 2.0-liter and 1.6-liter engines
and further improved TDCi diesel powertrains will be available across the range, together with new technologies and
innovations.
Ford South America. We continue to launch new products to meet the needs of our customers in South America. In
2010, we are bringing a flex-fuel version of the European-based Ford Focus to Brazil; nine additional product introductions
are planned for the region in 2010. As noted, we also are making our largest-ever investment in Brazil operations over a
five-year period, investing R$4 billion in 2011–2015 to accelerate delivery of more fuel-efficient, high-quality vehicles.
Ford Asia Pacific Africa. In 2010, we will see the introduction in Asia Pacific Africa of the all-new Ford Fiesta five-door
and four-door sedan built in Rayong, Thailand. The four-door Fiesta will join its five-door sibling in Australia, New Zealand,
South Africa and Taiwan. The new Ford Figo will commence sales in the second quarter in India and later in the year in
South Africa. Other product introductions in 2010 include updated core products in key Asia Pacific Africa markets, including
China.
Drive Quality. We have made significant strides to improve quality through a renewed commitment that touches every
aspect of the vehicle process – from design to manufacturing to product launch – so that quality is designed and built into
every vehicle. These efforts have paid off with best-in-class initial quality in the United States according to internal and
external quality surveys. We have established a global set of disciplined, standardized processes aimed at making us the
world's leader in automotive quality. Through GPDS and a single, global management team, we are leveraging our assets
by eliminating duplication, implementing best practices and a systematic approach to quality, and utilizing common
components for the advantage of scale. The new integrated approach can be seen in the new Fiesta, our first of this
generation of global cars under our One Ford plan. Selling one high-volume version of this vehicle helps us lower capital
and engineering costs, reduce defects and improve overall craftsmanship. In North America, we expect to launch our all-
new B- and C-cars with best-in-class quality in 2010. In the 2009 J.D. Power Asia Pacific India Vehicle Dependability
Study, our models ranked highest in the entry mid-size (Ford Ikon) and SUV (Ford Endeavor) segments. The Ikon also
topped J.D. Power Asia Pacific 2009 Initial Quality Study for India. In South America, we are preparing to launch the 2011
EcoSport developed using our extensive quality program based on owner surveys. The cumulative effect of these
disciplined, global quality standards has been improved owner satisfaction. We expect that our improved quality discipline
will lead to continued improvement in long-term reliability.
Drive Green. We remain committed to our goal to deliver best-in-class or among the best-in-class fuel efficiency in
every new vehicle we produce. For example, the 2010 Ford Fusion and Ford Fusion Hybrid, launched last year, are the
most fuel-efficient mid-size sedans in the market. The 2011 Ford Fiesta, which will be in showrooms this year, offers a
model rated at an EPA-estimated 30 miles per gallon city, 40 miles per gallon highway. The implementation of our new
EcoBoost family of gasoline engines is well on its way, with the 3.5-liter engine now available in the Lincoln MKS and MKT
and the Ford Taurus SHO and Flex and the I-4 EcoBoost to be introduced in vehicles this year. We will continue to
aggressively migrate this technology across our product lineup. By 2013, 90% of Ford's North America nameplates will
offer this engine option. By combining direct fuel-injection and turbo boosting, the engines can deliver up to 20% better
fuel economy and up to 15% fewer CO
2
emissions versus larger-displacement engines, without sacrificing driving
performance.
We also are rolling out EcoBoost in Europe, with five models slated to implement this technology in the near-term,
including the Galaxy and S-MAX in 2010. The Ford Europe ECOnetic range of ultra-low CO
2
models across all car
segments (from B to CD), including commercial vehicle applications, started in 2008 with the Ford Focus ECOnetic,
followed by the Fiesta and Transit ECOnetic. Recently, we unveiled the second-generation Focus ECOnetic with further
advanced technology and reduced CO
2
emissions (below 100 g/km of CO
2
). In Asia Pacific Africa, we have committed to
improving fuel efficiency by up to 20% across our product lineup by 2012 – helped by the introduction of new models, as
well as innovative Ford technologies such as Powershift transmissions and EcoBoost. As part of this commitment, we will
launch EcoBoost-equipped vehicles in China, Australia, New Zealand and Taiwan in 2010. Also in Australia, by 2011 we
will introduce an advanced liquid-injection LPG system for the Ford Falcon, providing customers with the most advanced
LPG technology on the market.