SOURCE: http://www.leftlanenews.com/2006/04/13/fords-svt-not-dead-after-all/Ford’s SVT not dead after all?
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In recent months, reports about the demise of Ford’s SVT division amid the company’s vast restructuring have been widespread. However, in a speech at the New York Auto Show, Mark Fields said Ford still has plans for high-performance vehicles. He even mentioned SVT by name. “Going forward, Ford is going to have a three-tiered approach to performance,” he said. “One tier of our strategy is personalized performance Next is SVT and products like the Ford Shelby GT500.” Fields says Ford plans to offer “one performance Mustang and one performance truck.” He said Ford expects “to sell 5,000 to 10,000 of each SVT vehicle a year going forward.” Fields didn’t say what that truck would be. In February, Ford reportedly cancelled Plans for the Sport Trac Adrenaline. Yesterday, we cited a report suggesting Ford was still considering a Focus RS. Fields also said the company plans to increase the emphasis on Ford Racing and Ford Racing Performance Parts.
SOURCE: http://www.paddocktalk.com/news/html/modules.php?op=modload&name=News&file=article&sid=30941Ford Pleased with Early Progress, Long Journey Remains
The following is a transcript of remarks as prepared for Mark Fields, Ford Motor Company Executive Vice President and President of the Americas; and Cisco Codina, group vice president, Ford North America Marketing, Sales and Service at the 2006 New York International Auto Show on Wednesday, April 12, 2006.
* MARKET SHARE: “So far this year, our U.S. share decline has been half of what it was a year ago. That means we’re making progress on slowing the rate of decline, which is the first step toward stabilizing it over time.”
* TRUCK LEADERSHIP: “We’re so bullish on the strength of F-Series, in fact, that we’re committing to sell more than 900,000 F-Series trucks this year for the third year in a row.”
* PERFORMANCE VEHICLES: “Going forward, Ford is going to have a three-tiered approach to performance.”
* FORD SHELBY GT-H: “In 1966, Carroll and Hertz came up with a crazy idea for Mustang – the ability to ‘Rent-A-Racer.’ Just like we did in ’66, we’ve done it again with the 2006 Ford Shelby GT-H,” says Codina.
[Mark Fields remarks]
Good morning and thank you for joining us. It’s always great to be back at this auto show in what is one of the greatest cities in the world.
New York itself, in many ways, parallels what’s happening within the auto industry. This city has been reinventing itself for decades to stay relevant and prosperous in the face of unrelenting domestic and international competition.
That same “Change or Die” reinvention is occurring within our business where we have witnessed more change in the first quarter of this year alone than we’ve seen in a generation.
For our part at Ford, it’s been a little more than two months since we mapped out our Way Forward plan.
It’s our comprehensive roadmap to restore Ford’s North American auto business to profitability no later than 2008 and to retake our place as America’s car company.
As part of our Way Forward, we’re improving quality at every stage of the product development and manufacturing process. We’re streamlining our costs and capacity to make us more efficient, more flexible
and more responsive to customers and the changing world. And, importantly, we’re changing the way we work at the Ford Motor Company from the inside out, making “Driving American Innovation” the driver of a new, nimbler culture.
All of this means taking a longer-term view of the market, rather than incremental thinking. It means no more playing “following the leader” in design, marketing or any other aspect of our business.
So “How’s it going?” As I plan to tell the investment community at lunchtime we’re very pleased with our early progress. But it remains a long journey.
Inside Ford, I like to compare what we’re doing to rewiring the house with the electricity on.
You take it carefully – step by step – because you get burned badly if you try to take short cuts or cost-cut your way to prosperity. If you do, you’ll create a turnaround that lasts no more than a couple of quarters, or a year or two at best.
History tells us that turnarounds do not succeed unless you address the root-cause issues head on and then execute, execute and execute some more. That is exactly what we are doing and I would like to touch on a few examples that underscore why we’re so confident in our vision and in our plan.
Let’s start with market share.
So far this year, our U.S. share decline has been half of what it was a year ago. That means we’re making progress on slowing the rate of decline, which is the first step toward stabilizing it over time.
Now, let me be very clear. We don’t like losing market share. And we’re working harder than ever to get the arrow pointing up – just as it now does in Canada – where our first quarter share was up a half a point over last year.
We’re already achieving some noteworthy share gains with our new products. Combined sales of the Ford Fusion, Mercury Milan and Lincoln Zephyr were up 28 percent in March compared with February, and we’re gaining that share from established players like the Toyota Camry, Nissan Altima and Chevy Malibu.
The Mustang has reclaimed its title as the best-selling convertible in the U.S., and we’re just now launching the new 2007 Ford Explorer Sport Trac, which has received strong reviews from the press and from Sport Trac owner groups – which is a very good sign for a nameplate that has conquest and loyalty rates rivaling Mustang’s.
And then there’s the F-Series. So far this year, sales are up 5 percent and we’ve increased our segment share by almost three points. That’s at the same time most of our competitors are losing share or just holding their own.
Now, speaking of Ford trucks let’s put some facts into perspective. Some analysts and media pundits have expressed “worry” about our truck leadership this year. I think their fears are misplaced.
To start, our Way Forward plan includes a stepped-up investment in fortifying our truck leadership, and we plan to capitalize even further on our strengths, including our great products, our loyal customers and the best dealers in the business.
We’re so bullish on the strength of F-Series, in fact, that we’re committing to sell more than 900,000
F-Series trucks this year for the third year in a row. That’s unprecedented and it will cap our 30 th year
of full-size pickup truck leadership.
Let me break the numbers down a little finer. By the end of the year, we will have sold 2.7 million F-Series trucks in just 36 months. That’s close to 3,000 sales every business day. You only achieve that kind of success by listening to customers and to dealers and innovating for them.
Today, we have almost 80 different F-Series cab sizes, bed styles and trim options because that’s what customers want and expect from the leader. The F-Series range now extends from work trucks to the FX4
with its off-road tuned shocks, skid plates, limited slip axle and new 20-inch wheels.
The lineup also includes our boldly-styled Harley-Davidson models, E-85 ethanol-powered trucks that lessen our dependence on foreign oil, and the ultimate Super Duty King Ranch edition.
Our newest offering coming this fall is the F-150 FX2 Sport. We created the FX2 Sport based on customer input for a 4x2 version of its off-roading cousin. The FX2 Sport is a street truck with a monochromatic look, upgraded cabin and uncompromised towing and hauling capability. We expect the new FX2 Sport to eventually account for up to 5 percent of all F-150 sales.
Now, this kind of product innovation doesn’t stop with trucks. At Ford, it increasingly extends to cars, especially performance cars like the 475-horsepower Ford Shelby GT500 coupe and convertible which go on sale this summer.
The GT500 is one of the cornerstones of our performance strategy and customers already see a legend in the making – including the gentleman who paid more than $600,000 for the rights to buy the first coupe during a Barrett-Jackson auction earlier this year.
That auction, combined with the recent sale of an early Ford GT from our collection, raised more than $1.2 million for Carroll Shelby’s Children’s Foundation. I was there with Carroll, and it was great day all the way around.
You probably have guessed that I am from the school that says performance vehicles make brands stronger.
I believe they have a critical role in our Way Forward because they challenge our designers and engineers to excel, they excite our marketers and they make a strong emotional connection to customers – usually through the right foot.
Going forward, Ford is going to have a three-tiered approach to performance.
One tier of our strategy is personalized performance. This is the fastest growing part of the enthusiast market and it includes vehicles with upgraded power, performance and appearance.
Next is SVT and products like the Ford Shelby GT500. Our plan is to offer one performance Mustang and one performance truck in our lineup going forward. These vehicles will represent true Ford performance and stay true to the SVT brand that our loyal customers have come expect. We expect to sell 5,000 to 10,000 of each SVT vehicle a year going forward.
The final tier of our performance strategy is occupied by Ford Racing and Ford Racing Performance Parts.
These hard core enthusiasts can help you win at the track behind the wheel of the Ford Mustang FR500C,
which captured the 2005 Grand Am Cup in its inaugural season. Or they can help you win on the street with affordable “power,” “handling” and “drag” packs developed for the Mustang.
You’ve seen the Shelby GT500 and you’ll soon be able to experience the most powerful factory-built Mustang for yourselves. Right now, we’d like to show you how the other two elements of our strategy – personalized performance and Ford Racing Performance Parts – can come together in a uniquely Ford way and a distinctively Carroll Shelby way.
Let’s take a look.
[Cisco Codina remarks]
Good morning. Well here it is – the new 2006 Ford Shelby GT-H Mustang.
The “H,” of course, stands for “Hertz edition,” and this is the 40 th anniversary of the original Shelby “Rent-a-Racer.”
It was a crazy idea that Carroll and the Hertz folks came up with back in 1965 and ’66. To think that you could rent a 306-horsepower Shelby for $17 a day and 17 cents per mile and maybe take it racing. They’re still a little crazy because this time the car has 325 horsepower – that’s 25 more than stock – thanks to Ford Racing parts.
And you’ll be able to rent one exclusively at select Hertz locations this spring.
To put that extra horsepower to the ground, the Ford Shelby GT-H comes with the Ford Racing Handling Pack plus a Ford Racing axle for extra off-the-line acceleration.
Each of the 500 cars that Carroll will build in his facility in Las Vegas will be instantly recognizable.
They sport a custom Shelby performance hood, a special front fascia, body side scoops and black exterior
paint set off with gold racing stripes – which is Hertz’s trademark color combination.
If you want to rent one, Hertz may ask for proof of good driving behavior, but that’s entirely up to them.
If you want to actually buy one, you can – but you will have to wait a bit.
After what I’m sure will be “light duty” miles with Hertz, these cars will eventually find their way to collector car auctions and Ford dealers, and we expect demand to be very strong. The original cars are among the most collectible of all vintage Mustangs.
I know I speak for everyone at Ford in thanking Carroll Shelby and Hertz for partnering with us on this very exciting project.
[Fields]
Thank you Cisco.
Well, there you have it. Some great new products that underscore the steps we’re already taking on moving forward.
Now as we said in January, transforming our North America business will take time and a lot of hard work which is what we’ve been doing. As you might have noticed, we’re getting down to work at Ford and we’re not beating our chests with a lot of spin or bravado. You’ll remember that, in January, we asked you to judge us by our results, not our words. For us, it’s less about what you say and more about what you deliver.
Delivering great new products like the Ford Shelby GT500, Shelby GT-H Mustang and F-150 FX2 Sport is a start – and we have much more to come.
Come down and have a look – and we’ll be happy to take your questions.
Thank you.
Igor
