JP Morgan Global Autos Industry Day Hau Thai-Tang Chief Product - - PowerPoint PPT Presentation

JP Morgan Global Autos Industry Day

Hau Thai-Tang Chief Product Development & Purchasing Officer, Ford Motor Company June 27, 2019

Our Belief Our Plan for Value Creation

Creating Tomorrow, Together

Winning Portfolio Propulsion Choices Autonomous Technology Mobility Experiences Operating Leverage Build, Partner, Buy Capital Efficiency Strong Balance Sheet

Fitness Culture & Values Metrics

Growth EBIT Margin ROIC Cash Flow

Passion for Product & Deep Customer Insight Our People Our Aspiration Freedom of movement drives human progress. To become the world’s most trusted company, designing smart vehicles for a smart world.

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3

Our Strategic Approach For Electrification Focuses On Building A Foundation For Long Term Success

Commercial, Trucks, Utilities, Performance Building on our iconic nameplates; amplify attributes our customers love best Design, volume, manufacturing and purchasing power Develop an ecosystem that makes the transitions to BEV lifestyle easier Play To Our Strengths Build Brand & Credibility Leverage Scale & Technology Business Model Innovation

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Fitness Redesign Core Initiatives

Customer Centricity Simplicity Speed & Agility Efficiency

PD / Purchasing Manufacturing Marketing & Sales IT Cross functional Skill Team Lead:

Blueprint-enabled demand management Manage complexity Next-generation manufacturing Collaborative media

• ptimization

PD footprint & capacity design Hours Per Unit reduction Freight Full-Network Sourcing Manufacturing footprint

• ptimization

Best cost at Job 1 Product-driven IT

• rg. living the

desired culture Modular architecture & lifecycle management Global Order-To-Delivery rapid prototype Yield management Digital marketing

• ptimization

Capex reduction through reuse Complexity governance Smart Redesign Enterprise Product Line Management Complexity Advertising & Sales Promotion Agile GPDS

Source: Ford Motor Company presentation at the Barclays Global Automotive Conference, November 14, 2018

5

Expected PD Fitness Impact Over 5 Year Plan Period

Fitness Targets Are Embedded In Our Business Plans

~$7B

Engineering / PD Cost Reduction

20%+

Less Time From Sketch To Showroom

~$1B

Manufacturing Cost Reduction

~$12B

Improved Material Cost

Source: Ford Motor Company presentation at the JP Morgan Auto Conference, August 8, 2018

6

Implementing Five Flexible Architectures

Global Architectures Coupled With Modular Designs Support High Product Differentiation While Delivering High Reuse And Scale Savings

* BEV capable

Flexible Architectures Customer Architecture Differentiators

5 4 3 2 1 ICE*: FWD / AWD Unibody ICE*: Commercial Van Unibody BEV: All drive types Unibody ICE*: RWD / AWD Body-On-Frame ICE*: RWD / AWD Unibody Body / Frame Propulsion / Drive Energy Consumer Experience Regulatory Requirements

Source: Ford Motor Company presentation at the JP Morgan Auto Conference, August 8, 2018

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We Are Bringing A Number Of Fully Electric Vehicles To Market In The Future

Mustang-inspired BEV SUV with 300 mile range in 2020 Ford F-150 BEV Partnership Product Ford Territory BEV for China in 2019 Ford Transit BEV for Europe

8

We Are Deploying World-class Hybrid Technology

High-volume, Profitable Vehicles Like F-150, Explorer And Escape Will Bring Great Capability And Features To Customers

1-Ton Transit (Europe) F-150 Explorer Escape / Kuga Aviator Corsair

Plug-in Hybrid (PHEV) Hybrid (HEV)

Police Interceptor

HEV & PHEV

Territory (China)

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Internal Combustion Spending Will Be Re-deployed Into Electrification For Future Demand

17 12

29%

Decline

Internal Combustion Engine Architectures

2016 2022

Source: Ford Motor Company CEO Strategic Update, October 3, 2017

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xEV Commodities Make / Buy

PHEV Product Sourcing BEV Product Sourcing Commodities: Current PHEV Future PHEV Future BEV

• Battery Pack
• Motor

/

• Gears

/

• Battery Array

/

• Battery Cell

/

• Power Electronics

In-house Outsource Partner

Q&A