Ford 2013 Annual Report Download - page 18

16 Ford Motor Company | 2013 Annual Report
Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued)
Driver behavior is a key contributing factor in many vehicle crashes. We have developed an array of programs and
technologies that help to encourage safer behavior on the roadways, for both experienced and novice drivers. The Ford
Driving Skills for Life (“Ford DSFL”), our flagship driver-education program, demonstrates our commitment to help new
drivers to improve their motoring skills. In the United States, Ford DSFL focuses on teen drivers; in our Asia Pacific Africa
markets, the program is aimed at novice drivers of all ages.
Smart. Ford continues to build upon its technology leadership by launching new features that make customers’ lives
easier and their driving experience safer and more enjoyable. Examples of recently launched features include
Emergency Assistance, Active City Stop, Active Park Assist, Lane Departure Warning, Lane Keeping Assist, Traffic Sign
Recognition, Door Edge Protector, Enhanced Traffic Message Channel, Hands-Free Liftgate, and Multi-Contour Seats.
Other exciting concepts are under development—features that our customers see and appreciate, and make their driving
experience safer and more enjoyable.
Ford set the benchmark for in-car connectivity systems with SYNC and we are now building on that success. We
have produced more than 10 million vehicles that are equipped with SYNC, and we expect the total to increase to more
than 14 million by 2015 as we launch SYNC globally. We are taking an agnostic approach to in-car connectivity which has
three components: built-in, brought-in, and beamed-in to enable and enhance the customer’s digital lifestyle. Ford’s newly
established connectivity organization will focus on creating a seamless customer experience both inside and outside the
vehicle.
Finance Our Plan and Improve Our Balance Sheet
Execution of our One Ford plan has generated significant positive Automotive operating-related cash flow in recent
years, which has allowed us to strengthen our balance sheet while continuing to invest in new products that customers
want and value, transform and grow our business, pay our debts and obligations as and when they come due, pay a
sustainable dividend, and provide protection within an uncertain global economic environment.
A proof point of this in 2013 was our ability to improve the funded status of our global pension plans by nearly
$10 billion, while continuing to invest in new products and grow our business. In addition, we plan to increase the ongoing
amount of capital spending to support product development, growth, restructuring, and infrastructure to about $7.5 billion
annually with variation by year. At the same time, we are targeting to reduce our Automotive debt levels to about
$10 billion by mid-decade. Further, to provide attractive returns to our shareholders, our plan includes paying a regular,
growing dividend that is sustainable over an economic or business cycle. In 2013, we doubled the quarterly dividend paid
on our Common and Class B Stock to $0.10 per share, and we have increased it an additional 25% for the first quarter of
2014.
Work Together Effectively as One Team
As part of the One Team approach, we have implemented a disciplined business plan process to regularly review our
business environment, risks and opportunities, strategy, and plan, and to identify areas of our plan that need special
attention while pursuing opportunities to improve our plan. Everyone is included and contributes, openness is
encouraged, our leaders are responsible and accountable, we use facts and data to make our decisions, high
performance teamwork is a performance criteria—and we follow this process every week, every month, and every quarter,
driving continuous improvement. We believe this process gives us a clear picture of our business in real time and the
ability to respond quickly and decisively to new issues and changing conditions—as we have done in the face of rapid
changes in the market and business environment in the last few years. As needed, we convene daily management
meetings to handle potentially acute situations, which allows us to ensure that we are vigorously managing daily
developments and moving decisively in response to changing conditions.
In addition, we are partnering with and enlisting all of our stakeholders to help us execute our plan to deal with our
business realities and create an exciting and viable business going forward. We are reaching out and listening to
customers, dealers, employees, labor unions, suppliers, investors, communities, retirees, and federal, state, and local
governments. Each of these constituencies is a critical part of the success of our business going forward. Realizing our
goal of profitable growth for all is as important to these stakeholders as it is to our shareholders.