November 2008

Connecting Ford People

ONE Ford for a changing world

 04 Upfront
Focused on today Executive changes
and tomorrow CLAD Awards 2008
Industry News
04
This is a year of two dramatically different
08 Cover Story
halves. We had a tremendous first half,
with record sales and impressive income, @Ford talks to Alan Mulally,
but the global economic uncertainty is Ford Motor Company president
now impacting business and consumer and CEO, about ONE Ford
confidence and driving vehicle sales lower
in many key markets.
In the first quarter, the industry was
forecasting a full year market of over
08
18 million vehicles. In the last quarter, the
expectation is for 15.5 million units, or less. That is 2.5 million
vehicles that the industry had geared up to produce, but which
will not now be needed. The inevitable result as we are now Ford News
seeing, is a scaling back of output to match the reduced demand. Included with this issue
But while industry-wide sales across the main European markets between pages 10 and 11
are declining (down almost 9% in September), our market share is
holding up. That is because of the strength of our range of products
and its appeal to the hearts and minds of buyers.
We will work hard to maintain that strength. Indeed, looking
ahead, it is clear that small, economical cars will be in demand 12 Feature
more and more, so our timing could not be better in having two
New Ka expresses its individuality
outstanding new models, Fiesta and Ka, coming to the market
with three personalisation packs
at this time.
We are also benefitting now from having taken difficult actions in 14 Feature
the past to make our business leaner and more efficient. However,
our financial break-even point is still too high, so there is more work The new Focus RS makes torque
to be done. But we are in a much stronger position today as a result
of those past actions.
steer a thing of the past
12
Tough times call for tough decisions and the leadership team is
15 Sport
prepared to do what it takes to safeguard our business and the A round-up of all the latest
continued flow of successful new products. Ford motorsport news
As part of that commitment, our laser focus on cost cutting and
income conservation will intensify as we respond to the difficult 16 Feature
market situation in which we find ourselves at the moment and European dealers get to
adjust so that our capacity matches our demand. But as we grips with the all-new Fiesta
respond effectively to the challenges of today, we will also keep
our focus on preserving our future. 18 Feature 14
The intense focus on Ford of Europe’s business performance
Outstanding teamwork brings
and future will continue following the announcement recently of new Fiesta to the market with
my appointment as chairman and CEO, Ford of Europe, together the highest quality
with having responsibility for Volvo. My job title may be different and
my day-to-day role may have changed in some regards but what
remains the same is my passion to ensure all of us stay focused on
our core business objectives.
Thank you for your hard work. As a committed team working
together we will emerge stronger from this challenging period.
16
Feel the difference
November 2008
John Fleming
Executive vice president and
chairman and CEO, Ford of Europe Connecting Ford People
 Upfront
New roles for Fleming and Booth
John Fleming has been appoint-
ed executive vice president
and chairman and chief executive
officer, Ford of Europe, succeed-
ing Lewis Booth. In his new role,
Fleming has responsibility for
Ford of Europe, Volvo Car Corpo-
ration and Ford’s Export Opera-
tions & Global Growth Initiatives.
Fleming, 57, was named group
vice president and president and
CEO, Ford of Europe, in 2005.
He joined Ford’s manufacturing
operations in the UK in 1967.
CLAD
Awards 2008
Ford of Europe’s vice president of Purchasing,
Birgit Behrendt, and vice president of Human
Resources, Nick Caton, were in Cologne
recently to present the 8th annual Chairman’s
Leadership Awards for Diversity (CLAD).
The awards recognise individuals at all levels
within the Company whose actions have made
a difference. They are based on the principle
that everyone can be a leader in diversity,
irrespective of their formal role within the
Company.
Eighty nominations were received reflecting
a broad range of employee involvement within
the business.
The awards are presented in five categories –
Leading the Way, Valuing a Diverse Workforce,
Building a Respectful and Inclusive Environ-
4 | November 2008
Lewis Booth is appointed
executive vice president and
chief financial officer, Ford
Motor Company, replacing
Don Leclair, who retired on
1 November.
Lewis Booth, 59, has held senior
positions in Europe, Asia and
North America. Leclair, 56,
was named executive vice
president and chief financial
officer in August 2003.
He joined Ford in 1976.
Fiesta is COTY finalist
The all-new Fiesta is one of seven Superb and Volkswagen Golf.
finalists in the Car of the Year 2009. For the final vote jury members
The 59 members of the COTY jury have to apportion 25 points among
considered some 37 models before at least five of the cars, providing
selecting the final seven. a written justification of their choice.
The other finalists are the Alfa Romeo The result will be announced on
MiTo, Citroën C5, Opel/Vauxhall 17 November.
Insignia, Renault Mégane, Skoda
Nick Caton and
Birgit Behrendt
with pupils from
the Rainbow Nation
who have estab-
lished links with
an orphanage in
South Africa, as
well as with schools
in New Zealand
and Cuba. They
also carry out
charitable work
and collections
ment, Worklife Flexibility, and Developing Exter- Europe’s chief designer, Stefan Lamm.
nal Partnerships. Each nomination is evaluated Behrendt commented: “Nelson Mandela
and considered on its individual merits. said ‘education is the most powerful weapon
Among the highlights of the event were a you can use to change the world’ and the pupils
recital by the Ford String Quartet, a presentation from the Rainbow Nation are an example of how
by five pupils from the Rainbow Nation – a diver- effectively this can be achieved with diversity.”
sity initiative by a UK-based school inspired by For more on CLAD 2008 see the December
the life and work of Nelson Mandela – and in the Diversity@Ford magazine, due out on
afternoon a Design presentation by Ford of 10 December.
 Ford renews Maltese dealer celebrates
80-year Ford link
GE fleet deal Gasan Enterprises has been Ford’s franchisee
in Malta for 80 years. To celebrate that eight-
decade relationship Gasan recently staged a
number of anniversary events.
The highlight was a ‘time tunnel’ display
staged in the main hall of the Mediterranean
Conference Centre in Valletta. The multimedia
display included a number of vehicles and
other memorabilia from five eras: the Twenties
and Thirties; the Fourties and Fifties; the Sixties
and Seventies; the Eighties and Nineties; and
2000 and beyond. The display included
newspapers from the various eras announcing
major national and international events,
Gasan historical milestones and photographs,
large plasma screens showing period footage
and models dressed in costumes of the era.
The celebrations were linked with the
staging in Malta of the Ford of Europe Europe-
an Direct Markets annual regional conference.
The event was attended by Malta’s prime
minister, Lawrence Gonzi.

Ford of Europe has renewed an International

fleet deal with one of the world’s largest finan-
cial services and industrial groups – General
Electric. GE employs some 315,000 people
worldwide and has a European fleet of
12,000 vehicles.

Ford has supplied vehicles to GE since 2000

but this latest deal, which covers 21 European
markets, means that over the next two years a
minimum of 70% of GE’s fleet purchases will
be from Ford Motor Company. This equates to
a minimum of 2,600 vehicles per year, 1,800 of
which will be Ford Blue Oval, with the remain-
der coming from Volvo and Mazda. GE have
also agreed to purchase around 640 units from
Ford over the next 12 months in the US.

“I am delighted that, after an intense tender

process that began in May 2008, we have
successfully renewed the European GE fleet
deal,” said Miles Maiklem, Ford Pan-European
B2B Operations Manager. “The customer deci-
sion making process was especially protracted
MyKey gives U.S. parents
this time due to fiercely competitive offers from
other major manufacturers. However, the eight-
peace of mind
year relationship, our excellent product range Ford Motor Company has
and the strong co-operation between the
revealed an innovative new
European Fleet Team and the National Sales
Companies swayed the deal in our favour.” technology designed to help
parents encourage their
Ford offers GE a unique level of service, teenagers to drive more safe-
including a dedicated European Implementa-
ly and efficiently.
tion Manager who provides regular product
and marketing communications and has MyKey™, which will debut on
organised more than 150 meetings and events the 2010 North American Ford
in 21 European markets in the past three years, Focus, allows owners to programme a
all of which has helped to cement the relation-
key that can limit the vehicle’s top speed fuel warnings and can be
ship between the GE businesses and the Ford
Motor Company brands. and audio volume. MyKey also encour- programmed to sound chimes
ages seatbelt usage, provides earlier low- at 45, 55 and 65mph.

November 2008 | 5
 Upfront

Segment shares total Europe Ford market share

September 2008
January to August 2008 total vehicles by country (+/– 2007)

A - Austria 7.5% (+0.4%)

1. Fiat Panda 15.1% 1. Citroën C4 Picasso 17.5% B - Belgium 8.0% (+0.8%)
2. Fiat 500 (2007) 11.9% 2. Renault Mégane 16.0% CH - Switzerland 6.1% (+1.9%)
12. Ford Ka 3.6% 5. Ford C-MAX 9.6% CZ - Czech Republic 10.5% (+1.7%)
D - Germany 7.7% (+0.8%)
DK - Denmark 6.7% (-2.4%)
E - Spain 8.2% (-1.4%)
1. Peugeot 207 13.1% 1. VW Passat 18.9% F - France 5.3% (+0.7%)
2. GM Corsa 11.3% 2. Skoda Octavia 13.3% FIN - Finland 8.4% (+0.2%)
4. Ford Fiesta 9.8% 3. Ford Mondeo 13.1% GB - Great Britain 14.9% (-0.1%)
9. Ford S-MAX 4.6% GR - Greece 6.9% (-0.7%)
H - Hungary 10.3% (-1.6%)
I - Italy 7.7% (+/-0.0%)
IRL - Ireland 16.3% (+0.9%)
1. GM Meriva 22.5% 1. Ford Galaxy 21.5% N - Norway 9.2% (+1.5%)
2. Renault Modus 15.7% 2. Renault Espace 18.0% NL - Netherlands 10.2% (+1.3%)
3. Ford Fusion 14.1% 3. VW Sharan 11.8% P - Portugal 7.3% (+0.8%)
PL - Poland 5.2% (-1.8%)
S - Sweden 5.6% (-0.8%)
RUS - Russia 4.2% (-2.0%)
1. VW Golf 16.3% 1. Ford Transit 12.5% TR - Turkey 16.0% (-0.9%)
2. Ford Focus 13.4% 2. VW Transporter 10.4%
3. GM Astra 12.4% 3. Fiat Ducato 8.0% TOTAL EUROPE 8.6% (-0.7%)

Renault and EDF

Fiat launches
eco:Drive
Fiat has launched a new system
which can actively help people drive
more efficiently by giving them an
accurate insight into how their
driving style influences fuel con-
sumption. On every journey the
system, called eco:Drive, records
details relating to the vehicle’s
efficiency and the driving style.
This data is then uploaded, via a
USB stick, to the driver’s computer
for analysis and scoring on an
“ecoindex”. The programme also
offers advice on how to drive in a
more fuel efficient manner.
partner on electric
project
French carmaker Renault and
power group EDF have signed an
agreement to develop a large scale
electric car project with the goal of
making electric vehicles a viable and
attractive option by 2011. The part-
ners plan to establish an all-electric
infrastructure in France and are
seeking partners to build a network
of charging stations across the
country, eventually creating what
Renault calls an “Electric Mobility
Operator” to manage the system.
Mazda3
to debut in LA
The all-new Mazda3 is to debut
at the Los Angeles Auto Show on
19 November. Fully redesigned for
the first time in five years, the new
Mazda3 promises a more refined yet
sporty ride, impressive fuel econo-
my and environmental and safety
features based on Mazda’s long-
term “Sustainable Zoom-Zoom”
vision. Since its launch in 2003,
the current Mazda3 has sold
around 1.8 million vehicles in over
100 countries and has won more
than 90 global awards. It accounts
for almost one in three Mazdas sold
every year.
Volvo aims
for better sound
Volvo Cars has launched a coopera-
tive venture with American audio
specialists Audyssey Labs as part of
the development of the next genera-
tion of audio systems for its cars. In
any listening environment, surfaces
absorb and reflect sound causing
distortion which degrades the listen-
ing experience. The US company
has developed a unique technology,
MultEQ, to remove the problems of
sound distortion.

6 | November 2008
Top 5 markets by volume
January to September 2008
Market Volume
1. UK 335 804
2. Germany 181 134
3. Italy 147 345
4. Russia 141 420
5. France 106 080
Total industry Europe 2008 YTD
Cars 13 433 005
Commercials 2 614 481
Across our main 19 European
markets we sold 136,700 vehicles
in September, gaining a market
share of 9.3 %.
While our unit sales were lower,
reflecting a near 9 % fall in industry
volumes, we made gains in several
major markets.
September is a bumper month for
Britain with buyers attracted by the
introduction of a new registration
plate. This year the overall market
was down about 20 %, but we sold
55,700 units for a market leading
share of 14.9 %.
Germany had yet another strong
month, increasing sales by 7 % to
22,300 and improving market share
by 0.8 % to 7.7 %. The gradual but
steady improvement in our perform-
ance in Germany is particularly
pleasing.
France also continued to pull
ahead, increasing sales by more
than a quarter to 12,000. Share was
up 0.7 % to 5.3 % and we were the
leading non-French brand.
In a declining Italian market we
sold fewer vehicles but our share of
7.7 % was unchanged from last
September. We were the country’s
leading imported brand.
With the Spanish economy in
sharp decline our sales dropped to
6,400, but we retained year-to-date
passenger car market leadership.
Among other highlights we over-
took Toyota to take leadership of the
Irish market and we were passen-
Top 5 markets by share
January to September 2008
Market
1. UK
2. Turkey
3. Ireland
4. Hungary
5. Spain
(-13 013)
(-24 786)
ger car leaders in the Netherlands
with a total vehicle share of 10.2 %
(+1.3 %). Sales were also higher in
Portugal, Norway, Austria, Swit-
zerland and the Czech Republic.
Outside the EU19 bloc we sold
12,500 vehicles in Russia, 6,900 in
Turkey and 5,500 in our EDM mar-
kets, taking the total for our 51 mar-
kets to 161,660.
The Fiesta was our top model in
September, selling 31,600 across
our main 19 markets. An impressive
8,500 of those vehicles were New
Fiestas, which is a huge success.
The Focus was close behind with
30,800. Mondeo sales totalled
15,500, C-MAX sold 10,570 and
S-MAX 4,300.
Among our commercial vehicles,
Transit sold 17,600 and Transit
Connect 4,500.
Year-to-date
While the global economic downturn
continued to impact auto sales in
some of our main 19 markets, our
share for the first nine months was
8.7 %, unchanged from last year.
But while share was steady, our unit
sales slipped 4 %, to 1,149,800, in
line with the decline in the total
industry.
Our sales in some major markets
were weaker but there were
increases in a number of countries,
including Germany (+5.6 %), France
(+11.8 %), Belgium (+8.9 %) and the
Netherlands (+6.8 %).
Share
16.1 %
14.6 %
13.6 %
11.6 %
9.5 %
Across all of our 51 European
markets we sold 1,414,500 units
in the first nine months of this year.
Ford sales in Russia and the
European Direct Markets continued
to be strong. Year-to-date sales in
Russia increased by 17.7 %, to over
141,000, with the EDM markets
rising more than 38 % to 66,000.
The market will continue to be
challenging but I remain optimistic
because we have an outstanding
and fresh range of new products
and, together with our dealer part-
ners, we are working hard to give COMMENT
customers the high quality vehicles
and service they want. By Ingvar Sviggum
I expect general economic Vice president,
concerns to continue in the Marketing Sales
months ahead but we are focused and Service
on bringing more new models to
market, including our all-new
small cars, the Fiesta and Ka.
FCSD performance • Sales YTD September:
Although the difficult economic 2.9 % above prior year.
environment is starting to affect • September sales: 1.6 % above
parts and service sales, particularly prior year - key growth markets
in Western Europe, the FCSD team were Russia, Poland, Czech
is ensuring every market has a spe- Republic, Turkey and Portugal. VP
cific plan in place to improve service Production Channel also contin-
traffic in Q4 through aggressive ued to be a strong contributor to
advertising and targeted offers for total sales.
older vehicles. These actions will • Service Satisfaction
continue into 2009 with a specific YTD September:
focus on addressing the key con- Customer satisfaction with Car
cerns of dealer and customer and CV workshop service above
confidence. objective.
November 2008 | 7
 Coverstory
ONE Ford for a changing world
In recent years motoring markets around
the world have been changed fundamentally
by the influence of a range of global trends,
such as higher fuel costs and concern for the
environment.
The result is that today, customers in those
markets want essentially the same thing:
vehicles that are high quality, fuel efficient,
sustainable, safe and good value. And they
want it all wrapped up in a stylish and great
driving package.
Because of this seismic shift there has never
been a better time for truly global vehicles,
nor for truly global companies to provide them
and prosper.
That is why two years ago Ford embarked
on its ONE Ford strategy of forging its global
resources into a single entity, focused on
developing and producing a range of common-
platform vehicles that deliver what customers
around the world want.
The Fiesta is the start. It is our first truly global
Ford car and, as such, the first manifestation of
ONE Ford.
European consumers are the first to get this
new small car. They will be followed by motor-
ists in Asia Pacific and North America as the
model spreads around the world.
8 | November 2008
The architect of ONE Ford, Ford Motor Com-
pany’s president and CEO, Alan Mulally, was at
the Paris Motor Show last month and shared
his vision of the future with the media.
“Clearly, customers from around the world
are coming together to care about a few key
characteristics,” he told them. “One is quality,
the second is fuel mileage and low CO2, and
another is safety. The final characteristic is
better value – a smart decision.”
He added: “Never in the history of the auto
industry have those requirements in the cus-
tomers’ eyes come together in all of the markets
around the world. And the Ford plan and the
strategy we’re on is to serve our customers
in Europe, Africa and Russia, that’s about one-
third of the market, the Americas, which is
about another third, and also the markets in
Asia Pacific, which is the final third. We are
going to be there in all three markets.
“The second part of our strategy is that within
a few years 60% of all the vehicles that are
sold around the world will be in the smaller size.
About 25% will be in the medium size and about
15% will be in the larger size.
“We are going to be there for our customers
in small, medium and large vehicles – cars,
utilities and trucks – and they will be the very
best in every segment.
“So this is a tremendously exciting time for
all in Ford Motor Company and for the auto
industry in general.”
Fiesta is the pioneer, leading the way for other
global Ford models. The next generation Focus
will follow in its tyre tracks. It has also been
announced that future C/D cars will be devel-
oped in the US for global customers, as Joe
Bakaj, vice president, Product Programmes
and Product Development for Ford of Europe,
explained:
“As part of our global core engineering we’re
trying to utilise resources in the best way world-
wide. What we’re going to do on C/D cars in the
US is put together an international team, and
some of the key players in that team will be, of
course, European so that we can continue to
bring the expertise that we’ve developed in
Europe to the next generation Mondeo.
“So it’s going to be good for Europe, it’s going
to help us balance the workload and the result
will be that everybody globally is going to get
better products. I’m looking forward to getting
the team up and running in the US.”

When he visited the Paris Motor Show
last month Ford Motor Company’s
president and CEO, Alan Mulally, was
the centre of media attention. But in
a hectic schedule he spoke to @Ford
about the Company’s progress,
ambitions and challenges
Global vision
What are your impressions of the Ford stand?
On the Ford stand we have world-class Ford cars, and to see
the response that we’re getting from consumers, suppliers and
the media about the quality of our vehicles, especially the fuel
efficiency, is just tremendous. That gives us a lot of hope for the
future as it shows we’re doing the right thing for Ford. We’re
going to complement our leadership in trucks and SUVs with
a full range of outstanding cars that people really will value.
It’s very exciting.
The Fiesta arrives in North America in 2010,
why not sooner?
The Fiesta originally was designed without consideration of
unique requirements on emissions and safety in the US. At the
time, fuel prices were relatively low, and so we focused on the fuel
efficiency of smaller vehicles mainly for the European and Asian
markets. Now that fuel prices are higher in the US customers
want smaller vehicles. Fiesta is going to be the first one that will
delight US consumers. Derrick Kuzak (group vice president,
Product Development) and his team are moving as quickly as
they can to satisfy the requirements of the US market and then
launch the new Fiesta in North America in 2010. Right now we’re
launching it in Europe. Early next year it will be in Asia Pacific.
Which customers around the world do you believe
will buy this model?
I think it goes back to what the consumers are looking for today.
First of all, with fuel prices being high, they really want fuel
efficiency. They want first class quality, they want it to be
sustainable, they want safety and they want
neat fit and finish. The Fiesta is all of that
and it’s going to serve customers
around the world. The Fiesta is
November 2008 | 9
 Coverstory
the first of our global cars that are going to deliver the kind of fuel
efficiency, safety, driving dynamics and quality that consumers
will buy from now on.
This is not the first time we’ve launched a global car,
what’s different this time?
I think that the biggest difference now is that consumer require-
ments are coalescing, they’re coming together. When we had low
fuel prices and low interest rates in the US the consumers chose
larger vehicles, and we provided great ones, our SUVs and trucks
were absolutely world class. But as fuel prices have gone up,
like we’ve all seen, then the consumers also want neat, smaller
vehicles. We’re going to have cars in the sub-B, the B, the C,
the C/D size and support all of our customers in Asia Pacific,
the Americas and Europe.
What impact is the economic slowdown
having on that strategy?
The situation worldwide is a concern to all
of us because we are slowing down
economically, not only in the US,
but also in Europe and Asia
Pacific. And these things
are natural, they usually
10 | November 2008
go in cycles; you have a lot of growth followed by a cooling off
of the economy. So we are in this part of the cycle, but what’s
different now is that we have really high fuel prices around the
world. So in addition to a cyclical effect, we also have a structural
effect, and consumers want even more fuel efficient, smaller
vehicles. We are responding, which is the most important thing
we can do, by sizing production to real demand and accelerating
the development of new products that people really want.
We’ve got the liquidity in place to do both of those and I think
the real value of leveraging our global assets and working
together as a global team is that ONE Ford is going to be abso-
lutely the differentiator and a competitive advantage for Ford.
How would you summarise Ford Motor Company’s
position in North America and globally?
North America is clearly dealing with a tough situation. We have
very good trucks and SUVs, we focused on those and our
customers love them. Now we’re seeing a retraction of the global
economy, especially in the US, and, as I said, with high fuel prices
customers also want smaller vehicles. So the most important
thing is that we size ourselves to the real demand, which we’re
doing, and then bring in new vehicles. It’s a tough situation.
Everyone is pulling together and I’m so pleased with the way that
we’re working together. The worst thing would be if we didn’t
take decisive action because then we’d be in a very, very difficult
situation. So we should continue to take decisive action and deal
with this very tough business environment. But everybody’s
working at it and everybody knows it’s important. So we’ll get
the business turned around and we’re going to be there with a
full portfolio of outstanding products.
Look back at Paris
The big news on the Ford stand was the arrival of the new
Ka, but it was not the only highlight. Among an extensive
range was a new Kuga derivative with a 2.5-litre petrol
engine, automatic transmission and AWD.
There was also a major focus on low CO2, fuel
efficient ECOnetic derivatives of the Fiesta, Focus
and Mondeo.
John Fleming announced that the range would
be expanded by the arrival of an ECOnetic version
of the new Ka.
He also showed the Paris audience the
specially-built Ka which features in the new
James Bond movie, Quantum of Solace.
The model features in a key scene in the film where
Bond first meets his leading lady, Camille, played by
actress Olga Kurylenko. Olga, right, who lives in Paris,
made the short journey to the motor show to help Fleming
reveal her Quantum of Solace Ka.
What will the structure and business of Ford Motor
Company look like in five years?
We’re seeing the shape and structure of the future today.
We started two years ago decisively focusing on the Ford brand.
And the other thing we’re doing is to be focused on ONE Ford,
which means that we are leveraging our assets worldwide, our
capability in trucks, as well as our capability in smaller vehicles.
We are also focusing on all markets around the world. So a
focus on Ford, global platforms and simplification. It’s going to
be absolutely key that we work together as ONE Ford worldwide.
And for me that’s a very compelling vision for all of us.

What is Europe’s contribution to the global transformation

of Ford Motor Company?
Ford of Europe is critical to our transformation because fuel
prices in Europe have been relatively high for a number of years
and you started earlier than anyone else to design very fuel effi-
cient, smaller vehicles. So you have a lot of experience, great
design and you are in the top three best-selling brands in almost
every market in which you compete. People love the Blue Oval;
they love the cars. Now we have Europe to draw upon, and your
leadership, to transform the rest of Ford to get these vehicles
into every market around the world. So very, very important
leadership from Ford of Europe.
Finally, what would you like to say to employees
in Europe?
Biography
Prior to joining Ford in September, 2006, Alan Mulally served
as executive vice president of The Boeing Company and
president and chief executive officer of Boeing Commercial
Airplanes.
Mulally joined Boeing in 1969 and progressed through a number
of significant engineering and programme-management
assignments.
He holds degrees in aeronautical and astronautical engineering
from the University of Kansas and gained a Master’s in
management from the Massachusetts Institute of Technology.

Thank you and congratulations. A native of Kansas, he is a private pilot and enjoys tennis, golf
and reading.
Interview by Peter Noble

Montage

November 2008 | 11
 Feature
Custom
With its cheeky smile and nippy
performance, the new Ka has a personality
all of its own, but owners can also stamp
their own individuality on the model
through a range of customising options
• Digital Art – This model has a
vibrant ‘street fashion’ design using
a high contrast green as the base
colour. The exterior pack features
patterned body stripes and solid
green grille surround and door mir-
ror cappings. The interior pack
includes seats with patterned
inserts and green headrests, green
door panels, and a solid green finish
to the centre console bezel, door
pulls, instrument cluster shroud,
steering wheel and the rings
around the air vents. Finish-
ing touches include a
gear knob and hand-
brake handle combin-
ing green leather with
an aluminium finish,
and velour floor mats
with green stitching.
12 | November 2008
Three personalisation packs are avail-
able offering a combination of interior and
exterior design treatments. Each has its
own distinctive exterior design along with
a matching set of interior features, such as
seats with unique fabrics and colour com-
binations, colour-coded interior finishes
and special steering wheels, gear knobs
and floor mats.
These packs are complemented by a
collection of individual customisation
items – from brightly coloured grille
surrounds to luxurious leather seats.
• Grand Prix – This has a motorsports
theme with a chequered flag motif
based on either a red or white exterior
colour scheme (depending on the cho-
sen body colour). The exterior pack
comprises patterned body stripes with
solid colour grille surround and door
mirror capping, and can be combined
with a rear spoiler and white alloy
wheels. The interior pack features red
seats with an embossed white pattern
and white headrests, red door panels,
and red leather trim on the steering
wheel. A gear knob and handbrake
handle combining red leather with an
aluminium finish, and velour floor mats
with red stitching, complete the
package.
Drive appeal
Unveiled in Paris last month, Ford’s ‘baby’ is
currently casting its charm over the media in
an extensive test drive programme in Spain.

The four-week Ka media test drive pro-

gramme commenced last month on the
Spanish island of Ibiza. By the time it ends on
14 November, some 800 motoring writers and
journalists from Ford of Europe’s 51 markets
will have had the opportunity to put the new
small car through its paces over a variety of
roads.

Early feedback suggests they are impressed

by the car’s style and on-road performance.

• Tattoo – An eye-catching model with tattoo design

which has a heart at its centre, created in bold
metallic colours. The exterior pack includes a large
tattoo logo on the roof and a smaller logo on the
bumper. The interior pack features seats with silver-
grey fabric inserts and the tattoo logo embossed
on the backrest, silver-grey headrests and door
panels, and anthracite leather trim on the steering
wheel. Velour floor mats with silver stitching and
embroidered tattoo emblem round things off, along
with a gear knob and handbrake handle combining
anthracite leather with an aluminium finish. There is
also a unique leather seat option which has a spe-
cial metallic finish on the insert panels and an
embossed tattoo emblem.
The Italian
connection
Legislative and consumer demands make it increasingly difficult for
automakers to make a profit on small cars. That is why, when it came
to producing a successor to the iconic Ka, Ford of Europe signed a
development and production co-operation agreement with Fiat.
“Small cars have a small margin, but the investment in the product is
not all that different from a large car,” said John Fleming, executive vice
president and chairman and CEO, Ford of Europe. “That is why we want-
ed to find a partner to share development and manufacturing costs.”
The deal between the two companies was signed three years ago and
Ford invested €210m in Fiat’s Tychy plant in Poland to produce the Ka.
A large chunk of that cash was spent on a new environmentally-friendly
paint shop.
The first new Ka model rolled off the assembly line in September. Annual
production is set at 120,000 units, with sales beginning early next year.
“The link with Fiat has worked very well,” said Joe Bakaj, Ford of
Europe’s vice president, Product Programmes and Product Develop-
ment. “We enjoyed working with the Fiat team and it was a successful
partnership. If we hadn’t worked with them we wouldn’t have been
able to afford to bring a Ka replacement to the market.”
The joint venture brought significant advantages for both companies.
“By working together, Fiat and Ford benefitted substantially from
reduced development costs and economies of scale in manufacturing
and component sourcing,” explained project and business manager,
Tony Dixon.
While it shares some components with the Fiat 500 (the reigning
Car of the Year), Ford designers and engineers were responsible for
the development of the interior and exterior design of the car, and
vehicle dynamics. They ensured that the Ka has a completely different
look and character and captures the spirit of the model it replaces with
its compact size, appealing design, lively dynamics and fun personality.
“With new Fiesta and new Ka, this is the year of the small car for Ford of
Europe,” added John Fleming. “And if ever there was a right time to
launch small cars, it is today.”

November 2008 | 13
 Feature
Traction ‘Revo’-lution
The new Focus RS has outstanding on-road performance thanks
partly to an innovation developed by engineers at the Aachen
advanced research centre
Torque steer is a phenomenon experienced
especially in front-wheel drive high performance
cars during hard acceleration while cornering or
driving on uneven surfaces. When wheel torque
on one side exceeds grip level, the limited slip dif-
ferential shifts torque to the other side, which
results in “torque steer”, a sudden turning force
on the steering wheel. Basically, the car starts to
steer itself to one side.
To overcome this problem the Focus RS is
equipped with a new type of front suspension
system. The innovative RevoKnuckle system
is designed to reduce unwanted steering
disturbance and torque steer on front-wheel-
drive vehicles.
14 | November 2008
Fast Ford
The Focus RS is the fastest ever European
Ford production car. With a top speed of
260kph (162mph) and a 0-100kph (0-62mph)
time of under 6.0 seconds, the new model
promises to redefine the expectations of
a front-wheel-drive high-performance
vehicle. The model is available in three
colours: Performance Blue, Frozen White
and Ultimate Green.
The advantage of this combination
is that it allows the traditional
McPherson strut arrangement to
function with geometry settings that
minimise steering disturbances and
torque steer.
“Working with colleagues at Ford Team
RS, we looked long and hard at how to
enhance the agility, responsiveness and stabili-
ty of the high performance RS model,” said Pim
van der Jagt, executive technical leader, Global
Vehicle Dynamics, Research and Advanced
Engineering Europe.
“Our work showed clearly that combining a
tuned RevoKnuckle with the Quaife differential
was an ideal solution for a high performance
front-wheel-drive road car.
“We, of course, gave all-wheel-drive careful
consideration, but by combining and tuning these
elements and learning from Ford’s expertise in
industry-leading handling, we have managed to
eliminate the weight of all-wheel-drive from the car
and have still been able to target a class-leading
balance of traction, handling and performance.”
According to Jost Capito, Ford of Europe’s
vehicle line director for Performance Vehicles, the
result is “a lightweight set-up that will deliver the
right blend of traction and razor sharp controllabil-
ity in a way no one would have expected from
front-wheel-drive.”
 Sport

BP Ford Abu Dhabi World Rally Team

in 2009.
First launched in 2006, the Fiesta
SportingTrophy International is based on
the highly acclaimed Fiesta ST. So far this
year, 13 drivers from across Europe have
entered the competition - with further
entries expected for Wales Rally GB -
which features four gravel and two Tarmac
rounds of the World Rally Championship,

Turks close in on FSTi title

starting in May with Rally d’Italia Sardegna
and then visitingTurkey, Finland, Germany
and Spain, before concluding in Wales.

The 2008 Fiesta SportingTrophy Interna-
tional series is set for a thrilling finale on the
forest stages of Wales Rally GB next
month.
Two young Turks face a straight shoot-
out for the silverware on this last event of
the season. They are 25-year-old Emre
Yurdakul and his 27-year-old rival Burcu
Cetinkaya.
Yurdakul has a slender one point lead
over Cetinkaya following an impressive
victory on RallyRACC Catalunya in his
Group N spec Fiesta ST. He picked up
seven stage wins in Spain to overhaul
Cetinkaya at the top of the table with just
one rally remaining. Cetinkaya had led
the series for much of the season but she
slipped to second place after two offs on
the penultimate round.
Whoever finishes highest up the leader
board in Wales will win an exclusive, all-
expenses-paid test in a factory supported
Ford Focus WRC 08 at M-Sport’s own
test facility in Cumbria. The victor will get
one-on-one tuition from double World
Champion Marcus Gronholm.
Also up for grabs is an entry to the FST
International Shootout in order to com-
pete against FST competitors to win a
contract to work for the M-Sport and the

Fiesta star steps Teamwork key to Ford’s

up to WRC
2007 Fiesta SportingTrophy International winner Barry
Clark has made an impressive transition into WRC this
season in his Ford Focus RS WRC, his prize for winning
the FSTi championship.
The 26-year-old Scot made his WRC debut with the
Munchi’s World Rally Team in Jordan in April, finishing
12th in a Focus RS WRC. Two months later in Turkey he
finished tenth in another Focus, an impressive result
he achieved again in October on Rallye de France.
Clark is aiming to finish even higher up the leader
board when he tackles next month’s Wales Rally GB in
a Focus.
title challenge
Former Ford works driver Francois Duval made perfect sense for me to help Mikko.”
made a successful return to the team on the Team director Malcolm Wilson said: “We
tarmac stages of Spain and Corsica last had to employ some tactics to try to win the
month. manufacturers’ title for a third consecutive sea-
The 27-year-old Belgian finished fourth in son and to give Mikko the best opportunity of
Spain in his BP Ford Abu Dhabi Focus RS
WRC. He then followed that up with third
place on Rally de France, scoring valuable
points for Ford.
On both events Duval allowed regular driver
Mikko Hirvonen to move past him after the Finn
was slowed by punctures. The move strength-
ened Hirvonen’s position in the drivers’ title
race. At the time of writing he was 14 points
behind Sebastien Loeb with two events
remaining.
Duval, who was drafted back into the Ford
team because of his expertise on tarmac, will claiming the drivers’ crown. Fortunately every-
make way for Jari-Matti Latvala on the final two thing went absolutely to plan. The guys did a
events of the season. Speaking in Corsica, he great job, they were very professional about
said: “My role was to help the team and so it the whole thing.”

November 2008 | 15
 Feature
Fiesta time
in Barcelona
An integral part of the launch programme of any new car is the
central dealer launch. For new Fiesta, Ford headed to Barcelona,
where it gave 7,000 dealers from nine markets across Europe
the chance to get behind the wheel for the first time and learn
all about the vehicle, its key selling points and the range of
available options.
After touching down at the airport the dealers were taken to
Montjuic, a spectacular viewpoint near the city centre and the
starting point for an evening test drive that took in many of the
nearby sights, including the Olympic Stadium and the world
famous Sagrada Familia cathedral. It is estimated that the dealers
collectively drove for 24,500 hours as they explored the vibrant
Spanish city and made their way to the hotel.
In preparation for the Fiesta Now event Ford lined the streets
with more than 600 Fiesta banners, five totems, a spectacular
1,000m2 sign draped across a building on one of the city’s main
thoroughfares – Avenida Diagonal – and a 195m2 video screen
at the airport.
The following day, each dealer group attended a series of train-
ing and motivation workshops which focused on the car and its
customers. The workshops looked at customer lifestyles, key
selling points and the vehicle’s marketing strategy.
Having learned more about Fiesta’s strengths and target cus-
tomers, the dealers were again put behind the wheel for a drive
16 | November 2008
session which enabled them to interact with the car’s new
technology, receiving a phone call using Bluetooth connectivity
and listening to product messages on the USB connection.
They were also invited to take photographs, which were
posted directly onto www.flickr.com (see them by searching for
“Fiestanow”). The technology drive was complemented by a
design, comfort and driving dynamics comparison test against
key market competitors.
For those markets that did not attend the Barcelona event a
Launch in a Box was provided. This contained a series of presen-
tations and various information about drive and training activities.
Fiesta gets TÜV seal of approval
The all-new Fiesta is the latest Ford model to be awarded an
official ‘allergy-tested’ seal by the TÜV.
In total nine Ford cars are now certified by TÜV – the current Ka
model, Fusion, Focus, C-MAX, Kuga, Mondeo, S-MAX, Galaxy
and the new Fiesta. Ford is the only car manufacturer in the world
whose products carry official TÜV allergy-friendly certification.
The TÜV is an independent, authoritative German testing
and assessment organisation that controls and certifies quality
standards for industrial and consumer products. Its certification
assures a vehicle’s interior materials are selected in order to mini-
mise the allergy risk to the lowest possible level.
 Media coverage
Auto Piu, Italy: Fiesta’s handling has
matured greatly, as reflected by the
steering (which is precise and light) and
its intuitive, safe road performance. This
Ford remains undaunted in the face of
sudden shifts in weight or emergency
braking on curves.
Auto Plus, France: The new Fiesta
immediately finds its place among the
category leaders. It is a champion of
compromise that has no glaring faults.
Its pronounced style and state-of-the-art
on-board technology will be the reasons
people are attracted to the Fiesta.

The Sun, UK: I was stunned with how
good the Fiesta is. This is one sleek and
stylish car… when you get inside you‘ll
be amazed not only at how much space
there is - the front leg room is the best in
its class - but also at the sheer quality of
the cabin.
Coche Actual, Spain: When it comes to
dynamics, we need only drive a few kilo-
metres to realise that the new Fiesta
aims much higher than the previous one.
The model is now at the top of its game
where tread quality and road perform-
ance are concerned, remaining steady
in any situation.
Auto Zeitung, Germany: Congratulations
to Ford in Cologne: the new Fiesta plays
premiere league in the small car seg-
ment. It is comfortable and agile, well
built and affordable.
Autogids/Moniteur de l’Automobile,
Belgium: With the new Fiesta, Ford has
undoubtedly introduced a winner to the
market. It looks great, drives excellently,
offers plenty of space and has an attrac-
tive finish.
Het Nieuwsblad, Belgium: Ford is keen
on economy but its youngest sprig also
shows an exciting character… the sixth
generation is a very good looking little
car with an exciting drive.

The TÜV conducts extensive, scientifically verifiable tests

including the analysis of more than 100 materials and compo-
nents for harmful substances or allergy-causing potential.
“This award is another significant contribution to the sustaina-
bility story behind the new Fiesta and it reflects the attention to
detail and quality present in all Ford vehicles,” said Dr Wolfgang
Schneider, vice president of Legal, Governmental and Environ-
mental Affairs, Ford of Europe. “We know such credentials are
important to our customers and we will continue to develop vehi-
cles to these standards.”
As part of Ford’s development programme for vehicle interiors,
engineers reduce to the absolute minimum use of materials that
can provoke allergic reactions in some people, such as latex,
chrome and nickel. Additionally, all components likely to have
direct and prolonged skin contact, such as the steering wheel,
seat covers and seat belts, are dermatologically tested. Vehicles
are also equipped with high-performance pollen filters that pre-
vent allergic pollens from entering the car’s interior and ensure a
high level of cabin air quality.
The TÜV measurement and assessment results for all Ford
cars are now published online at www.tuv.com.

November 2008 | 17
 Feature

Fiesta quality a triumph

for teamwork

Getting a new vehicle to Job 1 on time and at
the right quality is a major operation for the manu-
facturing plant, involving teams from across the
Company and the supplier base working relent-
lessly to resolve every issue.
When John Fleming praised the new car’s
“high manufacturing quality” he was acknow-
ledging the huge amount of work that has gone
in to ensuring that Ford’s first global car offers
the very highest levels of quality.
The all-new Fiesta is manufactured with
sophisticated techniques more commonly found
in the production of large cars - techniques intro-
duced at the Cologne assembly plant without
interfering with existing Fiesta production.
In an operation planned with military-like preci-
sion, the all-new Fiesta manufacturing team went
into the plant on weekends to install and verify
new systems on the existing line.
Production of the former Fiesta continued
through the week, until Saturday mornings,
then the manufacturing team had until Monday
morning to work on pre-production modifications
and ‘try-outs’.
“It was quite a challenge to get to Job 1 alongside
other production but it was a challenge that was
very effectively handled by all production areas,”
said Cologne plant quality manager Christian
Schmitz.
“We had big teams in at weekends, including
suppliers. It meant lots of weekend working
and lots of advance planning.”
That planning had started two years before
Job 1 with discussions with Product Develop-
ment. Every aspect of the quality of the then-
current Fiesta was looked at closely and a list of
‘must’ and ‘want’ items for the new car drawn up.
There were instances where components had
to be designed in a different way or changes made
to ensure that line operators would not be able to
assemble a part incorrectly or take a wrong part.
A senior person in the plant was assigned to
each supplier of key commodities to ensure that
suppliers understood all the issues in the plant.
It meant that any problems with the parts experi-
enced on the previous Fiesta were addressed
and all issues with the old model removed.
Key to the successful launch was training.
Some of the 50,000 hours of operator training
was done off-line on static cars, with other training
on-line. In one example, the production team built
the same car on the line every day, then stripped
it down and built it again.
“We staggered the launch, starting with a very
low volume and low derivatives so the operators
did not have to rush and could call for help if need-
ed. When it reached a stable level of production
and quality, production was ramped up,” said
Schmitz.
New quality checks have included an in-car
entertainment test cell, new visual check system
in the bodyshop for closures and a new noise,
vibration and harshness test stand (which was
actually commissioned while the previous car
was in production).
Teamwork has been critical to success, said
Schmitz: “We really have worked closely as a
team, with everyone involved early in the process.
We have adopted a white board process to follow
up on quality issues brought up at the daily meet-
ings we have had for the last five months; within
24 hours we have a feedback on both interim
containment and permanent corrective actions
to ensure the highest quality.”
Kelvin Brown

Ford
Executive editor: Emmanuel Lubrani, elubrani@ford.com | Copy editor: Richard Noble, r noble9@ford.com | Design: Manfred Müller, mmuell86@ford.com,
Alexander Bertrams | Production: Zetweka, Print & Production Management, Cologne | Digital Reproduction: purpur, Cologne |Print: Neef & Stumme, Wittingen |
Published by Ford of Europe, Communications and Public Affairs

18 | November 2008
MANY languages.

ONE Ford.

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