2024-02-15 14:58:05 ET
Ford Motor Company (F)
Wolfe Research Global 2024 Auto and Auto Tech Conference
February 15, 2024 08:55 AM ET
Company Participants
Jim Farley - President, CEO & Director
John Lawler - CFO
Conference Call Participants
Rod Lache - Wolfe Research
Presentation
Jim Farley
[Call Starts Abruptly] … a much stronger Ford. We would have a much stronger base. The irony of that though is that if we had done that quicker, would we have really trusted that organization to disrupt itself like we have. I think one of the biggest gifts turns out, one of the biggest gifts the management team has given ourselves is the small skunkworks team, who really came up with a way of executing an affordable platform with a completely different orientation. And my industrial team would have never been able to do. So it's not perfect but yes, I think we'll have regress. And that's a big one for me. So a humbling thing.
Question-and-Answer Session
Q - Rod Lache
It sounds like -- and I'm going to get into that in a minute, but it sounds like that's an indication of where the strategy is changing now and where the focus of the management team is now.
Jim Farley
I mean I'll give you an example. Three years ago -- be very precise. Three years ago, when we -- it was the first year, we had kind of record recalls in the U.S. I just become the CEO and I looked at the performance management of the middle and entry managers in supply chain, manufacturing and engineering, and 91% of them had 100% or more in their cash bonus, okay?
So now that's not the case. You have to set up a culture shift performance reward system, where every engineering manager, purchasing component manager, every plant manager is fully accountable for the quality and cost of their work. I could give you 20 examples like that. Things that have changed now and we're starting to see the results. Yes, we committed to $2 billion of cost savings across the industrial system. But to me, much more important than that, last year was the first year we turned around initial quality, 10% better. Yes, we lost -- you talked about Pro. We lost a lot of launch volume in Super Duty because we protected the launch for quality because the vehicles were engineered through that same system....
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Ford Motor Company (F) Wolfe Research Global 2024 Auto and Auto Tech Conference Call (Transcript)