SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 21, 1994
FORD MOTOR COMPANY
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-3950 38-0549190
(Commission File Number) (IRS Employer Identification No.)
The American Road, Dearborn, Michigan 48121
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 313-322-3000
<PAGE>
Item 5. Other Events.
A news release dated April 21, 1994 announcing the realignment of
Ford Motor Company's automotive business is filed as Exhibit 20 to this
Current Report on Form 8-K and is incorporated by reference herein.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
EXHIBITS
Designation Description Method of Filing
- ----------- ----------- ----------------
Exhibit 20 News release dated Filed with this Report.
April 21, 1994.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized on the date indicated.
FORD MOTOR COMPANY
(Registrant)
Date: April 22, 1994 By:/s/T. J. Dezure
T. J. DeZure
Assistant Secretary
<PAGE>
EXHIBIT INDEX
DESIGNATION DESCRIPTION PAGE
- ----------- ----------- ----
Exhibit 20 News release dated
April 21, 1994.
april21.wp
Exhibit 20
Corporate News Public Affairs
Ford Motor Company
The American Road
Room 904
Dearborn, MI 49121
Telephone:(313)322-9600
Fax:(313)845-0570
DO NOT RELEASE BEFORE 9:30 A.M. (EDT) ON APRIL 21, 1994
Contact: Judith Muhlberg or Ian Slater
Terry Bresnihan or Sarah Perris
Ray Day (London)
(Dearborn) (44) 71-290-3003
(1) 313-322-9600
FORD TO REALIGN WORLDWIDE AUTOMOTIVE PROCESSES
AND ORGANIZATION TO MANAGE THEM
DEARBORN, Mich., April 21 -- Ford Motor Company will realign
its worldwide automotive business over the next few years to
optimize its resources and prepare for future growth, Alex
Trotman, chairman and chief executive officer, announced today.
He said that the company will move to a single set of
worldwide processes and systems in its product development,
manufacturing, supply and sales activities.
The company will set up five Vehicle Program Centers (VPCs),
one in Europe split between the Ford Research and Engineering
Centers in Dunton (U.K.) and Merkenich (Germany) for small front
wheel drive (FWD) cars, and four in the Ford Research and
Engineering Center in Dearborn (U.S.) for large FWD cars, rear
wheel drive (RWD) cars, personal use trucks and commercial
trucks. Each VPC will have worldwide responsibility for the
design, development and engineering of the vehicles assigned to
it.
<PAGE>
"This is a worldwide business that requires the broadest
thinking and execution," said Trotman. "We can best serve the
individual customer in all the markets where we compete if we can
provide the greatest amount of value, quality and choice. By
integrating all our automotive processes and eliminating
duplication of effort, we will use our creative and technical
resources most effectively in our pursuit of total customer
satisfaction.
"This new way of doing business will provide customers with
a broader array of vehicles in most markets, assure full
competitiveness in quality and value against the best in the
world, and -- through simplification of engineering, supply,
technical and other processes -- will substantially reduce the
cost of operating the automotive business."
Trotman said that the company will create Ford Automotive
Operations (FAO), effectively merging the company's European
Automotive Operations, North American Automotive Operations and
Automotive Components Group into a single operating unit. This
will be effective on Jan. 1, 1995, although there will be a
continuing integration over the next few years. Many activities
of central staffs also will be integrated into FAO.
Trotman said the company's Asia-Pacific and Latin American
Operations would remain separate for the time being and would
report to Wayne Booker, who continues as executive vice
president, International Automotive Operations. Jaguar and
Aston-Martin would remain corporate entities, although their
activities would be coordinated through FAO and the RWD Car VPC.
"One of our key objectives is to increase Ford's presence in
the growth markets of the Asia-Pacific region," Trotman said.
"And the integrated product development approach we are taking
should give us the competitive products necessary for further
expansion in Asia."
Ford's announcement continues an evolution from regional to
worldwide processes that is increasingly based on the use of
high-technology, data and communications systems. These helped
the success of the transatlantic development process that
recently produced the mid-sized Ford Mondeo, Ford Contour and
Mercury Mystique cars. Ford plans to sell up to 800,000 of these
vehicles annually in a total of 59 markets in the world.
<PAGE>
Trotman said Ford's recent improvement in profitability is
largely based on improving economic conditions in North America
as well as continuing strength in Asia and Latin America. But,
he said, there is need to continue to accelerate the company's
efforts to become even more competitive in good economic times
and bad.
"We've decided that the best time to prepare ourselves for
the increasingly competitive markets of the next 20 years is when
the company is doing quite well. We'll do that by broadly
changing the processes by which we run our automotive business.
This also will require us to adjust our organization, although
that is the result of what we are doing, not the driver.
"The early result will be some adjustment in product
development and a few other organizations. The long-term results
will assure our ability to design, engineer, build and sell cars
and trucks that customers all over the world will consider second
to none," Trotman said.
"As we make these changes to help us serve our customers
better, we also will realize significant savings in the way we
carry out our product development, purchasing and supply, and
other activities," Trotman continued. "It's hard to measure the
exact potential, but we believe at this point it will be $2-$3
billion per year by the end of the decade.
"That assures a better return for stockholders, a more
certain future for Ford employees and a broader array of high-
quality vehicles in more parts of the world for our customers.
"We're not kidding ourselves by thinking this will be a walk
in the park. Some people will find themselves in new jobs;
others will be assigned different work in their old jobs. But 90
to 95 percent of all the Ford employees around the world will
hardly notice the difference in their daily work.
"We've put 27 senior people on the transition team that will
launch this new effort over the next eight months. We've begun a
comprehensive communications program for all our employees,
especially the 1,700 middle and senior managers who lead the
organization. I have committed considerable time over the next
year to meet with employees to solicit their input, discuss their
concerns, answer their questions and help develop a new sense of
confidence and excitement throughout the Ford organization.
"The transition will be a challenge. But I know this Ford
team. When they get charged up, they'll walk through walls to
get the job done."
<PAGE>
Trotman said the lead effort is focused on product
development activities. Product development in Europe and North
America will become fully integrated with the five Vehicle
Program Centers, which will be given specific worldwide
responsibilities and will report to one product development
executive.
Supporting the changes in the product development process,
Ford's manufacturing, supply, and marketing and sales operations
each will become integrated worldwide. An automotive strategy
office will coordinate all strategic planning.
"The process changes are possible today in part because of
our efforts over the past few years to establish the Worldwide
Engineering Release System, Purchasing Release System, Ford
Corporate Design process and other common systems," Trotman said.
Ford Automotive Operations will have responsibility for all
aspects of the company's automotive business in North America and
Europe.
Ed Hagenlocker is named president - Ford Automotive
Operations, reporting to Trotman.
Trotman announced the appointments of three executives who
would be responsible for the major functions of FAO and who would
report to Hagenlocker.
They are:
- Jac Nasser, group vice president - Product Development
- Bob Rewey, group vice president - Marketing and Sales
- Bob Transou, group vice president - Manufacturing
These and other executives will serve on an FAO executive
committee that will direct overall automotive strategies.
"This group will establish general policy and worldwide
strategy, but all other decision-making will be pushed deep into
the operations. Our current committee structure will be reduced
to simplify and speed up decision-making," Trotman said. "We're
going to combine the resources and efficiencies of a huge,
successful company with the speed and responsiveness of small
companies. And the beneficiaries will be our customers."
The team of 27 senior executives will supervise the eight-
month transition, as well as continue to run the company's day-
by-day business.<PAGE>
Albert Caspers, who has been elected chairman of Ford of
Europe, succeeding Jac Nasser, will lead the company's European
operations during the transition and will report to Wayne Booker.
After Jan. 1, 1995, Caspers will be the senior Ford executive in
Europe and report to Hagenlocker. He continues as chairman, Ford
Werke AG.
"We are not simply changing lines on an organization chart,"
Trotman emphasized. "This is entirely about the processes that we
use as we go about our business around the world. As we simplify
those processes, there clearly will be a need for fewer salaried
people at today's business levels. I am hopeful that much of the
reduction can be achieved by normal attrition and retirements."
Trotman and other senior executives already have held
meetings with the company's 340 most senior managers, and 1,350
middle managers also have been briefed in a televised
presentation. Trotman will meet in the next two weeks with all
senior and middle management in Europe and North America.
Ford has been an international company since a few weeks
after its formation in 1903, when Henry Ford sold a Model A to a
customer in Canada. Within 10 years, his company was selling
cars throughout Europe, South America and Asia. Today, Ford has
plants or other facilities in 30 countries, sells vehicles in
more than 200 markets and employs more than 320,000 people around
the world.
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4/21/94
