Ford, Suppliers Help Develop Industry-First Technologies for Mustang, F-150; Working Together Key to Ford’s Aggressive 2014

  Ford, Suppliers Help Develop Industry-First Technologies for Mustang, F-150;
  Working Together Key to Ford’s Aggressive 2014 Product Launches

  *Ford announces details on innovative techniques used to develop its
    all-new 2015 Mustang and F-150 – two of 23 products coming to market
    globally in 2014 that are the result of the company’s strong supplier
  *Ford’s Aligned Business Framework with its Matched Pairs and Executive
    Business Technology Review initiatives help guide the company’s process to
    attract the industry’s best technologies
  *Ford strives to be suppliers’ customer of choice through the industry’s
    highest product refresh rates, commitment to product excellence and
    innovation, and clear brand positioning

Business Wire

TRAVERSE CITY, Mich. -- August 7, 2014

Ford Motor Company today announced details on new development techniques used
to create its all-new Mustang and F-150, originating with the automaker’s
suppliers. As Ford embarks on its most aggressive product launch year to date,
with 23 launches globally – 16 in North America – the company is looking to
its suppliers to help differentiate its products in the global marketplace,
while continuing to meet customer expectations for safety, quality,
sustainability and technology.

“As part of our One Ford plan, our suppliers are critical to creating
profitable growth for all,” said Hau Thai-Tang, group vice president, Ford
Global Purchasing. “With the industry’s highest product refresh rates,
commitment to product excellence and innovation, and clear brand positioning,
Ford is a preferred customer with the supply base.”

At the Center for Automotive Research Management Briefing Seminar, Thai-Tang
outlined several industry-first, Ford-supplier technologies that are being
introduced on new 2015 products including:

  *Quarter windows for 2015 Mustang 50 Years Limited Edition: Rather than a
    traditional plastic or metal louver that sits on top of the glass, Ford
    worked with Magna International to create quarter windows consisting of an
    industry-first louvered glass. The result is a modern homage to a classic
    design cue that is unique to the Mustang 50 Years Limited Edition
  *Hydroformed A-pillar and roof rails, 2015 Mustang: To deliver top
    performance with the most efficient headroom package and weight, Ford
    worked with Schuler and Midway to engineer the heaviest-gauge steel
    hydroformed A-pillar and roof rails. Through the collaboration, torsional
    stiffness increases 28 percent for the new car while the body-in-white is
    lighter than the previous model
  *Stronger, lighter high-strength steel frame, 2015 F-150: As part of Ford’s
    collaboration with Metalsa, the company used tailor-rolled blanks with
    variable material thickness, patented structures that reduce material
    usage without decreasing performance, increased high-strength steel from
    22 percent to 77 percent and improved joining to take more than 60 pounds
    out of the frame while improving rigidity and enabling higher towing and
    hauling ratings
  *Segment-first LED headlamps, 2015 F-150: Ford collaborated with OSRAM and
    Flex-n-Gate to design an innovative full-solid-state headlamp design that
    saves energy, is designed for longevity, and casts a much brighter and
    clearer light down the road than halogen or incandescent lamps.A
    jewel-like optical cube channels light energy from a single LED chip to
    provide optimal lighting and visibility

“Considering the impact suppliers have on our business, with 70 percent of the
value of the vehicle being purchased from our supplier partners, our suppliers
are critical to our ability to offer attractive solutions to our customers,”
said Thai-Tang. “Ford’s Aligned Business Framework, which we introduced close
to ten years ago, fosters an environment of transparency and will continue to
guide our close relationships with our suppliers.”

Strong ties with suppliers

Ford has relationships with more than 1,100 production suppliers operating at
more than 4,600 manufacturing sites that produce 130,000 parts for inclusion
in vehicles the company sells. Because of the integral role its suppliers play
in the company’s overall growth and sustainability, Ford works to foster a
business environment that is both creative and transparent, leading to new
innovations and acceleration in the development of new vehicles.

A core component of Ford’s strong supplier relationship is its Matched Pairs
system, an internal alignment initiative between its product development and
purchasing departments. Through the system, not only are the technical and
commercial strategies aligned, but members from each department are paired so
that decisions are made in tandem from the beginning. This approach increases
collaboration from product design through procurement, and simplifies
communication by reducing the points of contact for each commodity. The
alignment of the two departments means they share a common cost objective, and
improves interaction with suppliers by allowing them to engage directly at the
right level.

The Matched Pairs system is part of Ford’s Aligned Business Framework. It
enables supplier innovations to reach customers quicker by providing more
robust tracking of new technologies, from idea to implementation. The
framework encourages more communication between suppliers and senior Ford
leaders, offers greater opportunities to increase scale, and engages suppliers
earlier in the product design process. Ford has more than 100 Aligned Business
Framework suppliers.

Another framework initiative helping to spur supplier innovation is the
Executive Business Technology Review. This allows Ford’s senior leadership
team from product development and purchasing to experience suppliers’ latest
technologies through a show-and-tell, and for Ford to potentially be the first
automaker to introduce these technologies to drivers around the world. Key
technologies introduced through the review include Ford’s hands-free liftgate,
active park assist and lane-keeping system, which debuted on various 2012 and
2013 Ford vehicles. Ford will continue to leverage its Aligned Business
Framework to provide a systematic structure for suppliers to introduce new
technologies to Ford customers.

“Many technologies on the road today were developed as a result of our
supplier relationships,” said Thai-Tang. “We will continue to strive to be our
suppliers’ customer of choice through our continued new product introductions
and emphasis on technology excellence.”

About Ford Motor Company

Ford Motor Company, a global automotive industry leader based in Dearborn,
Mich., manufactures or distributes automobiles across six continents. With
about 186,000 employees and 65 plants worldwide, the company’s automotive
brands include Ford and Lincoln. The company provides financial services
through Ford Motor Credit Company. For more information regarding Ford and its
products worldwide, please visit

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