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Old 06-10-2003, 10:06   #1 (permalink)
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Ford starts production of vital new F-150 pickup

Automotive News
Reuters / June 10, 2003

NORFOLK, Va. -- Ford Motor Co. began production on Tuesday of its all-new F-150 pickup, a product vital to the bottom line of the automaker as it celebrates its centennial this week and struggles to recover from a profit slump.

The F series has been the best-selling vehicle in the United States for more than two decades, and Wall Street analysts say it drives more than half of Ford's profits.

"This is a make-or-break for Ford. This is without a doubt the most crucial product that they've got coming in the last five years and going forward for the next five years," said independent automotive con******t MaryAnn Keller. "This has to succeed; they have to make it work."

While the new version has been heralded as bigger and better than its predecessor, analysts say it is also at least $1,000 more expensive to build. And that's a cardinal sin in today's auto industry, where design and engineering are aimed at taking costs out, not adding them.

To compensate for the cost, Ford, which is trying to recover from a profit slump, may boost the sticker price of the F-150. But that could make it difficult to keep selling more than 800,000 of the trucks a year, especially in a market where the Big 3 have been unable to sell anything lately without huge consumer incentives.

Ford CEO Bill Ford, who is on hand for Tuesday's launch ceremony here, knows how much his company has riding on the F-150, which he has called "the most successful vehicle in the history of automobiles."

"In the last 50 years, nothing has been more essential to our success, or more important to us, then the F series," Ford said in a statement.

For its success, he has to ensure the new V-8-powered truck has not just pizazz and a host of new customer features, but also what Keller calls "flawless perfection."

That's a tall order of business for any automaker. Ford, which has many cars and trucks to celebrate as it marks its 100th anniversary this month, has been pulling out all the stops to make the new F-150 another American classic, however.

Ford plans to add F-150 production in two plants, in Kansas City, Mo., and Dearborn, Mich. Even if Ford makes the pickup near perfect, the marketplace has changed dramatically since Ford launched the outgoing version of the F-150 seven years ago.

'DIFFERENT LANDSCAPE'

"It's a different competitive landscape," said Michael Robinet, an analyst with CSM Worldwide, a Michigan automotive research and consulting firm.

Unlike in the mid-1990s, the F-150 faces tough competitors from General Motors and the Chrysler group, along with new offerings due soon from Toyota Motor Corp. and Nissan Motor Co. Ltd.

To differentiate its new truck, a struggle for any manufacturer, Ford is offering the industry's widest variety of body and trim configurations, with five F-150 packages featuring three box lengths and two distinct box styles. All will come with four doors, of one size or another.

Even the base model regular cab version of the truck, which goes on sale this fall, features 13 inches of storage space behind the front seat. And that alone could give it an edge over the standard pickup offerings from GM, Ford's leading rival.

But given the cutthroat nature of the industry, and Detroit's intensifying price war, analysts say Ford may put profit-gouging incentives on its new pickup, to help spur sales soon after its debut. And that could mean it will no longer be the cash cow it once was for Ford.

"The bottom line is that even if they sell 800,000 (per year) they're going to make less per unit on them than they did on the current version," said Keller.
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Old 06-10-2003, 10:16   #2 (permalink)
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FIRST 2004 FORD F-150 ROLLS OFF ASSEMBLY LINE INTO HISTORY

Ford Motor Company’s F-Series trucks, led by the Ford F-150, reached another leadership milestone today. The first 2004 F-150, a sporty red SuperCab Lariat, rolled off the Norfolk Assembly Plant line, using an all-new flexible manufacturing system.

To enhance today’s milestone, the company equipped the first truck with Ford's 100-millionth V-8 engine – the new 5.4-liter 3-valve Triton™ V-8, which was produced April 29 at Ford’s Essex Engine Plant in Windsor, Ont.

The debut of the 2004 F-150 comes only six days before the company that Henry Ford founded a century ago officially observes its Centennial celebration.

"In the last 50 years, nothing has been more central to our success, or more important to us, than the F-Series," said Bill Ford, Chairman and CEO. "The power, styling and interiors of this fantastic all-new 2004 Ford F-150 are built to delight our customers and help maintain its place as America’s favorite truck."

F-Series has been the nation’s best-selling truck for 26 consecutive years and the best-selling vehicle for 21 years in a row.

During the celebration 2,500 employees and guests applauded as Bill Ford drove the first new Ford F-150 off the line and into an arena with Gerald Bantom, United Auto Worker vice president and director of the UAW National Ford Department.

"The work force at Norfolk Assembly has tremendous skill and experience, with a long tradition of producing some of the highest quality vehicles in the plant’s 78-year history," Bantom said.

Virginia Gov. Mark Warner presented the company with a proclamation in observance of Ford’s Centennial on June 16. "The people of Virginia and Ford Motor Company have enjoyed a successful partnership for 78 of Ford’s 100 years," Warner said. "I believe our business partnership should serve as an example for the kind of reinvestment in people and facilities that can stimulate regional economies and the corporate bottom line."

Flexible Manufacturing Start-Up

With the launch of the new 2004 Ford F-150 at Norfolk Assembly, Ford also introduced its new flexible production technology. "Just as the F-Series has defined the truck market for more than 26 years, our all-new flexible manufacturing system introduces a new era of flexible manufacturing at Ford," said Roman Krygier, group vice president, Global Manufacturing and Quality.

Norfolk is the first of several Ford plants to install a next-generation flexible system, allowing it to build up to eight different models off two platforms. "Norfolk Assembly now has the ability to change the mix, volume and options of products in response to consumer demand and market segmentation – all with minimal investment and changeover loss," said Krygier.

Over the next decade, Ford expects to save up to $2 billion because its flexible system will cost 10 percent to 15 percent less than traditional systems, with an added 50 percent savings in changeover costs.

Ford’s flexible body shops employ an industry-first system of 16 standardized cells, or modules, all built from about 300 components. Only product-specific tooling needs to be changed, or computers and robots reprogrammed, to launch new products.

By mid-decade in North America, about half of Ford’s body shops, trim and final assembly operations will be flexible. That number rises to 75 percent by the end of the decade.

Ford’s Kansas City (Mo.) Assembly Plant will begin building the new 2004 Ford F-150 later this summer, and the new Dearborn (Mich.) Truck Plant will begin building the F-Series truck in 2004. Both will be among the first plants to install a flexible production system.

Other plants to install the flexible system include the Chicago Assembly Plant, which will build the all-new 2005 Ford Freestyle, Ford Five Hundred and Mercury Montego, and AutoAlliance International in Flat Rock, Mich., which will build the new 2005 Mustang beginning next year.

Ford’s new system standardizes the assembly process, which improves productivity through reduced changeover downtime. Standardization helps improve quality through increased repeatability. Plus, easier access results in improved safety and ergonomics for operators and maintenance crews.

The new body shop will be able to handle two distinct platforms while producing four different derivatives off each platform. The lines can be configured to accommodate front-wheel-drive, rear-wheel-drive, unitized-body and body-on-frame vehicles.

The same type of standardization found in the new body shops is being employed in final assembly. Final assembly operations have a standard sequence, with standardized workstations that can be changed or modified quickly and easily to accommodate new vehicle options or features.

The Norfolk Assembly Plant, which began operations in 1925 with production of the Model T, currently has 2,320 employees. Since 1974, the plant has been home to the F-Series truck. Norfolk Assembly builds the F-150 Regular Cab and SuperCab models in five versions: XL, STX, XLT, FX4 and Lariat.

100 Millionth V-8 Engine

To showcase Ford’s engine heritage, the first 2004 F-150 was equipped with the company’s 100-millionth V-8 engine, a powerful new 5.4 liter, 3-valve Triton™ V-8. The engine is the newest member of Ford’s modular engine family. It is the first modular V-8 Ford engine to use variable-cam timing to optimize intake and exhaust valve operation across the rev range, generating both lower-speed torque and high-speed horsepower while minimizing emissions. Ford uses a new flexible manufacturing process to produce the new V-8, which is being rolled out globally at all the company’s powertrain plants.

2004 Ford F-150

Tough, capable and powerful, the F-Series has been the best-selling full-size pickup for 26 years and the nation’s favorite vehicle for 21 years running.

When the new 2004 F-150 hits showrooms this fall, customers will discover a broad range of overarching product enhancements. The truck’s strong backbone – the industry’s stiffest fully boxed frame – gives it great handling precision. Its wider track provides great stability, and the all-new coil-over-shock front suspension system provides a greater sense of control. Other enhancements include:

Stronger stance and style – The new F-150 features an all-new design, with a bold exterior shape that exemplifies Ford truck toughness and capability. The interiors boldly take the full-size pickup into a new dimension of comfort and refinement.
Power – Ford’s new 5.4-liter, 3-valve Triton™ V-8 engine produces 300 peak horsepower – a 15 percent improvement over the previous award-winning 5.4-liter engine, and 365 foot-pounds of torque for improved low-speed and peak pulling power. Mated with the new 4R75E transmission for smoother shifts and improved fuel efficiency, the new engine also contributes to a quieter cab environment for F-150 customers.
Even tougher – The fully boxed frame is approximately nine times stiffer torsionally than its tough predecessor, providing the foundation for enhancements in durability, safety, driving dynamics and refined, quiet ride.
Superior driving experience – Tremendous attention to detail has been applied to the chassis of the F-150 to deliver a confident, capable driving experience. F-150’s newly designed rear suspension, featuring outboard shock, is among the details that contribute to more confident and precise handling, both in everyday driving and while towing a trailer.
Increased interior spaciousness – Regular Cab and SuperCab models have a passenger compartment that is six inches longer, providing more space inside for occupants and their gear. For SuperCab models, that extra length means increased rear-seat comfort for three adults. In the Regular Cab, it means 13 inches of secure storage space behind the seat.
Greater access – Reflecting consumer demand for ease of access for both people and cargo, Regular Cab models feature new, class-exclusive access doors that open up new stowage possibilities and accessibility behind the seat.
More cargo capacity – The new F-150’s cargo box is 2 inches deeper, providing greater cargo volume. Plus, a new class-exclusive Tailgate Assist feature, which is standard across the lineup, helps owners of all statures open and close the gate.
Enhanced safety – Inherent strength and toughness, plus the F-150 Personal Safety System’s™ new occupant-sensing technology for the front outboard passenger, makes the all-new F-150 a strong choice for safety. It has been engineered to exceed the rigorous new federal government safety standard, FMVSS 208, which governs air-bag and offset crash performance.

Ford Motor Company, headquartered in Dearborn, Michigan, is the world’s second-largest automaker, with approximately 335,000 employees in 200 markets on six continents. Its automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Credit, Quality Care and Hertz. Ford Motor Company will officially observe its 100th anniversary on June 16, 2003.
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Old 06-11-2003, 05:53   #3 (permalink)
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USA: Ford launches new truck production as analysts fret over its profits

Ford launched production on Tuesday of its all-new F-150 pickup truck, a product vital to the vehicle maker’s bottom line as it celebrates its centennial this week and struggles to recover from a profit slump, Reuters reported, noting that the truck has been the best-selling vehicle in the United States for more than two decades, and Wall Street analysts say it drives more than half of Ford's profits.

"This is a make-or-break for Ford. This is without a doubt the most crucial product that they've got coming in the last five years and going forward for the next five years," said automotive con******t MaryAnn Keller told Reuters, adding: "This has to succeed, they have to make it work."

Reuters said that, while the new version has been heralded as bigger and better than its predecessor, analysts say it is also at least $US1,000 more expensive to build, a cardinal sin in today's motor industry, where design and engineering processes are aimed at taking costs out, not adding them in.

To compensate for the cost, Reuters said, Ford, which is trying to recover from a profit slump, may boost the sticker price of the F-150 but that could make it difficult to keep selling more than 800,000 of the trucks a year, especially in a market where Detroit's Big Three makers have been unable to sell anything lately without huge consumer incentives.

Ford has been pulling out all the stops to make the new F-150 another American classic, Reuters said, with plans to add new F-150 production in two more plants, in Kansas City and Dearborn, Michigan. But the marketplace has changed dramatically since Ford launched the outgoing version of the F-150 seven years ago, the news agency noted.

"It's a different competitive landscape," Michael Robinet, an analyst with CSM Worldwide, a Michigan-based automotive research and consulting firm, told Reuters.

Unlike in the mid-1990s, the F-150 faces tough competitors from General Motors and Chrysler, along with new offerings due soon from Toyota and Nissan, Reuters said.

To differentiate its new truck, a struggle for any manufacturer, Ford is offering the industry's widest variety of body and trim configurations, with five different F-150 packages featuring three different box lengths and two distinct box styles. All will come with four doors, of one size or another, the news agency said.

Even the base model regular cab version of the truck, which goes on sale this autumn, features 13 inches of storage space behind the front seat and that alone could give it an edge over the standard pickup offerings from GM, Ford's leading rival, Reuters said.

But, given the cut-throat nature of the industry, and Detroit's intensifying price war, analysts have told Reuters that Ford may put profit-gouging incentives on its new pickup, to help spur sales soon after its launch and that could mean it will no longer be the cash cow it once was for the company.

"The bottom line is that even if they sell 800,000 (per year) they're going to make less per unit on them than they did on the current version," Keller told Reuters.


Source: just-auto.com editorial team
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Old 06-11-2003, 07:42   #4 (permalink)
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Ford hopes, profits ride on success of the F-150

No. 1 selling truck is firm's bread and butter

By Mark Truby / The Detroit News
Charles V. Tines / The Detroit News

NORFOLK, Va. -- Stepping out from behind the wheel of the candy-apple red F-150 pickup Tuesday, Ford Chairman and CEO Bill Ford Jr. wasted no time telling a crowd of factory workers how critical the new truck is to the automaker's comeback bid.

"Our future starts here and starts now," Bill Ford said as cheers erupted at Ford's plant here off Virginia's coastline. "I hope you're ready to work some overtime."

The pep rally-like ceremony Tuesday marking the start of production of the F-150 may have been standard auto industry hype, but Bill Ford is not exaggerating how much is riding on the new truck's success as Ford approaches it 100th birthday on Monday.

For Ford, which lost $6.4 billion in 2001 and 2002 and is projecting a $1.2 billion profit this year, the new F-150 is the closest thing to a make-or-break vehicle since the 1986 Taurus sedan pulled the company out of a sea of red ink.

The F-Series pickup is the best-selling vehicle in the United States. Customers snapped up 814,000 F-Series pickups last year, accounting for more than 20 percent of Ford's U.S. vehicle sales.

Ford marketing executives have set a goal of selling 1 million F-Series a year, which will be difficult with industry competition intensifying and foreign brands like Toyota Motor Corp. and Nissan Motor Co. crashing the full-size truck party.

"The F-150 is extremely important to Ford," Saul Rubin, an automotive analyst with UBS Warburg, said recently. "It's crucial really. They need it to be a success."

Ford spent more than three years and $1.8 billion designing the new F-150 to be tougher looking, more comfortable and better performing than the current model.

Now Ford must prevent the pickup from getting stuck in the morass of delays, quality problems and recalls that marred the debut of the Ford Explorer and other Ford vehicles in recent years.

Long launch process

Tuesday's "Job 1" ceremony in Norfolk marks the beginning of a long, difficult launch process. The 78-year factory here -- which once built Model Ts -- was chosen as the lead factory because of its stellar quality and productivity record.

Ford's Kansas City assembly plant begins F-150 production later this summer. The new Dearborn truck plant at the Rouge complex follows next year.

"We know there is a huge amount of pressure on this vehicle," said Richard Hampton, a 26-year Ford veteran and a team leader at the Norfolk assembly plant. "It's the company's bread and butter."

While the Norfolk plant has been among the industry's best in quality and productivity, the new F-150 will present a challenge for its 2,300 workers. The truck comes in five separate versions with markedly different exteriors and interiors.

"There is a lot of complexity in the new truck compared with the current version," Hampton said. "Every truck coming down the line does not fit together the same way."

Labor relations critical

Meanwhile, Ford is hoping relations between union leaders and plant management have mended after an ugly confrontation late last year that led to the suspension of the plant's top union official.

Edward Hay, bargaining committee chairman for United Auto Workers Local 919, was accused of threatening a supervisor with bodily harm Dec. 31. The union countered that a plant manager was responsible for the altercation.

Afterward, a torrent of e-mails and fliers about the incident only added to employee distractions on the plant floor.

Hay, who was initially terminated from the company, has since been reinstated after serving a suspension without pay. On Tuesday, he said the contention is in the past and will not affect the crucial new truck.

"We will deliver the best launch Ford Motor Co. has ever seen," he said.

Cost hurdle remains

The last hurdle for Ford will be dealing with the cost of building the F-150.

Bill Ford said Tuesday that the company considered delaying the launch to find a way to reduce production costs.

The automaker has acknowledged that the new F-150 will cost significantly more than the current model to produce -- $1,000 to $2,000 more by some estimates. Ford decided instead to launch the 2004 F-150 on time and work on cutting costs on future model years.

That will mean hammering suppliers for price reductions, reengineering some parts and making tough decisions on what features and other content in the truck stays or goes, said Roman Krygier, Ford's head of quality and manufacturing.

(Photo)Our future starts here and starts now," Bill Ford Jr. says Tuesday as cheers erupt at the Norfolk truck factory off Virginia's coastline at "Job 1" ceremony. "I hope you're ready to work some overtime."
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Old 06-11-2003, 08:02   #5 (permalink)
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Ford banks on all-new F-Series

By David Kiley, USA TODAY
NORFOLK, Va. — Ford Motor Tuesday began building its most important vehicle — the all-new 2004 F-Series pickup. Designed to offer customers as much interior comfort and style as a European sedan, the only thing the pickup may lack is enough profit.

Ford sold 814,000 F-Series — the best-selling vehicle in the USA — last year. Wall Street estimates they accounted for about half of Ford's automotive profit.

But a repeat in 2004 isn't likely. It's costing at least $1,200 a vehicle more to build the new truck vs. its predecessor, and few think Ford will be able to sell it for that much more. Ford also will start selling the F-Series in August in the middle of the most cutthroat truck price war in the industry's history.

"There is no question we have to cut cost on the truck. But it's more important that we get this launch right," said Ford CEO Bill Ford. "... This is the most important model to our turnaround."

He ruled out cost cutting before the launch because late engineering changes led to 12 recalls of Ford Focus. That hurt Ford's quality scores and cost hundreds of millions in warranty payouts.

The added costs for the F-150 are in five different plush interior designs, a new 5.4-liter V-8 engine and about 500 additional pounds of weight for safety and performance features and space.

After the launch, Ford will try to beat down suppliers on costs, move some parts production abroad, re-engineer some components and take out content it hopes customers won't miss. "But we have to be careful not to hurt quality or disappoint our customers," says Ford manufacturing chief Roman Krieger.

Adding to the price pressure is discounting by other automakers. General Motors is discounting its trucks by 20.3%. Dodge is selling the Ram pickup 17% below sticker price. Even Toyota is discounting its Tundra by 16%.

GM is using its success in lowering manufacturing costs to inflict as much pain as possible on Ford and Chrysler Group with its incentives.

"When you are the low-cost manufacturer, you can call the tune to which your competition dances," says David Cole, director of the Center for Automotive Research in Ann Arbor, Mich.

Given the pricing pressure from GM, some analysts worry about Ford's ability to make back its investment on F-Series in a reasonable time frame, about two years.

"Negative pricing pressure on Ford is only getting worse as it launches the new truck, not better," says Goldman Sachs' Gary Lapidus.

Ted Lois, 48, of Norfolk, home to one of three F-Series plants, has been tracking the progress of the new truck on a Web site and says he is poised to buy one. "But there is no way I'd pay sticker or close to it for a U.S. vehicle. Why should I? I'll wait until early 2004 for the $3,000 rebate."

(Photo)The first of Ford's all-new 2004 F-150 trucks waits to roll off the assembly line in Norfolk, Va.
By Gary Knapp, AP
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Old 06-18-2003, 07:56   #6 (permalink)
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Ford builds full range of F-150s from the start, hopes for glitch-free launch

By AMY WILSON | Automotive News

NORFOLK, Va. - Despite being tripped up by quality glitches in recent product launches, Ford Motor Co. takes on its most complex manufacturing launch ever with the redesigned F-150 pickup.

From the start of production, Ford will produce two cab styles and five models of the next-generation pickup at its Norfolk, Va., assembly plant. When the Kansas City, Mo., plant launches production in mid-July, it will produce three cab styles and five models from the beginning.

Ford typically ramps up launches more gradually for vehicles with multiple models, starting with one or two varieties and working out the manufacturing kinks before tackling other versions. But executives are relying on new flexible manufacturing equipment, commononized processes and early preparation to smooth the launch process at the F-150 plants.

"Because of our flexibility and the way we've gone about our vehicle design, we minimize the risk of waiting to have to launch different body styles," said Roman Krygier, Ford group vice president of global manufacturing and quality.

In Norfolk, for instance, the F-150 team put the body shop machines through dry runs beginning in January, compared with just two to four weeks ahead of launch in past vehicle introductions, said Ken Macfarlane, director of truck manufacturing operations.
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