Production Forecast: Ford Motor Company future model plans and production outlook
Date published: Thursday, October 06, 2011
Description
Record profits in 2010
Ford Motor Company’s net profit rose 2.5-times in 2010 to nearly US$6.6bn and the Automotive division reported operating profit of US$5.8bn; both figures were the best results for 10 years, although this needs to be seen in context: in profit terms, the Automotive division performed woefully in the first decade of this century, reporting operating losses for each of the nine years to 2009 - a cumulative loss of US$(40.3)bn.
The underlying losses during this period mostly reflected tougher competition in the US and the growing handicap of pension and healthcare costs. The company was also hit by declining demand for large SUVs in North
America - a major source of profit in previous years.
In response to falling profitability, Ford implemented a string of restructuring actions since 2000. The ‘Revitalisation Plan’ was followed by the ‘PAG Improvement Plan’, then by ‘Way Forward’ and most recently, ‘One Ford’. Several plans had "Version 2.0" to accelerate or intensify the planned savings.
The Automotive profit is particularly significant. The last time Ford’s Automotive Operations earned US$5-6bn in operating profit, it was selling 1.5-2 million more vehicles each year. The moves to lower Ford's breakeven volume and improve flexibility clearly paid dividends. With a period of profitable growth in prospect, the company needs to maintain this lower cost base.
Production outlook
In 2010, Ford produced 5.35 million units, up 19.7% over 2009. This figure includes production of light commercial vehicles (LCVs) such as the Transit and TransitConnect, as well as some heavy commercial vehicles (HCVs) which are not included in the passenger car production data contained in this report.
Whilst cutting excess capacity in mature markets in recent years, Ford has invested significantly in flexible manufacturing in its assembly and powertrain plants. Its flexible manufacturing plants will each be able to manufacture vehicles based on three architectures, which will underpin all Ford products.
In the NAFTA region, the company has converted two light truck assembly plants to small car production and is converting a third. In growing regions including the BRIC markets, Ford is investing in new capacity.
Product development
Ford is aiming for 70% of its products worldwide to be unified under the One Ford strategy, in order to leverage the full benefit of its global resources and products. All Ford vehicles in global segments will be common in NAFTA, Europe and Asia by 2015.
This report examines Ford Motor Company’s future model plans and global passenger car production in the period to 2015.
Information presented includes:
- Ford future model plans by brand and model
- Ford passenger car production by region, country, brand and model (2010-2015)
Table of contents:
Executive summary
Introduction
Chapter 1: Product development & brand strategy
Product development
Mercury and Lincoln
Chapter 2: Production outlook
NAFTA
Thailand
China
India
Europe
Turkey
South America
Other