Market Overview

Ford Creates 'Ford Autonomous Vehicles LLC'; Strengthens Global Organization to Accelerate Progress, Improve Fitness

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  • Ford creates Ford Autonomous Vehicles LLC, which will encompass all
    aspects of its self-driving vehicle business operations, to accelerate
    its AV business and capitalize on market opportunities
  • As it accelerates the integration and application of technology across
    its industrial system, Ford is realigning its Information Technology
    and global order to delivery teams under its Global Operations
    organization
  • Ford is embedding a deeper product-line focus across the company. The
    effort is anchored in human-centered design with product teams putting
    even greater emphasis on customer insights and market opportunities to
    deliver the products people love across global markets

Ford Motor Company today announced it has created Ford Autonomous
Vehicles LLC, a new organization charged with accelerating its AV
business to capitalize on market opportunities. The company also
detailed key organizational changes designed to improve its operational
fitness and drive profitable growth.

The company is organizing its self-driving business into Ford Autonomous
Vehicles LLC, which will include Ford's self-driving systems
integration, autonomous vehicle research and advanced engineering, AV
transportation-as-a-service network development, user experience,
business strategy and business development teams. The new LLC, which is
structured to take on third party investment, will be primarily based at
Ford's Corktown campus in Detroit and will hold Ford's ownership stake
in Argo AI, the company's Pittsburgh-based partner for self-driving
system development. Ford expects to invest $4 billion in its AV efforts
through 2023, including its $1 billion investment in Argo AI.

Sherif
Marakby
, currently Ford vice president, Autonomous Vehicles and
Electrification, is appointed CEO of Ford Autonomous Vehicles LLC
reporting to a board of directors chaired by Marcy
Klevorn
, Ford's executive vice president and president, Mobility.
The closer alignment of the self-driving platform and the mobility
solutions teams will allow faster development of businesses that can
thrive in the pre- and post-autonomous vehicle worlds.

"Ford has made tremendous progress across the self driving value chain –
from technology development to business model innovation to user
experience," said Jim Hackett, president and CEO, Ford Motor Company.
"Now is the right time to consolidate our autonomous driving platform
into one team to best position the business for the opportunities ahead."

With Marakby's move, Ted Cannis, global director, electrification, will
lead Ford's Team Edison, the team responsible for developing and
bringing to market next-generation electric vehicles. Team Edison will
continue to report to Jim
Farley
, executive vice president and president, Global Markets.

Ford's electric vehicle strategy includes rethinking the ownership
experience, including making charging an effortless experience at home
and on the road, as well as offering full-vehicle over-the-air software
updates to enhance capability and features.

In addition, Ford is reorganizing its Global Operations division led by
Executive Vice President Joe
Hinrichs
to include Information Technology as well as the company's
global order-to-delivery system, integrating the teams, technologies and
processes from both across Ford's production system. As a result, Jeff
Lemmer
, vice president and CIO, will report to Hinrichs.

This realignment will help the company accelerate the integration and
application of technology across its industrial system to further
streamline manufacturing, speed vehicle delivery times, reduce
inventories and improve capital efficiency.

"The evolution of computing power and IT have helped bring great
products to customers – from cars to tablets," Hackett said. "We can now
harness this technology to unlock a new world of vehicle
personalization, supply chain choreography and inventory leanness that
rivals any industrial model in the world – and Joe's challenge is to
help us redesign this system to do just that – while better serving
customers and dealers and improving our overall fitness."

Hau
Thai-Tang
, executive vice president, Product Development and
Purchasing, will now report directly to Hackett. The move ensures these
critical functions have an even stronger voice as the company creates a
winning portfolio of products.

Under Thai-Tang, Ford is moving to flexible vehicle architectures and
more common parts across models, cutting new product development time –
from sketch to dealer showroom – by 20 percent. This is helping Ford
achieve its commitment to deliver nearly $7 billion of engineering
efficiencies. The company intends to have the most efficient Product
Development organization among full-line automakers within five years.

Ford's five flexible vehicle architectures – body-on-frame,
front-wheel-drive unibody, rear-wheel-drive unibody, commercial van
unibody and BEV – are paired with module "families" that address the
power pack, electrical pack and vehicle configurations. Seventy percent
of each vehicle's engineering will be driven from this new architecture
approach, with 30 percent of content – including grilles, hoods, doors
and more – customized for each vehicle.

All organization changes announced today are effective Aug. 1.

Additionally, Ford is embedding a deeper product-line focus across the
company. Led by Jim Farley, the effort is anchored on human-centered
design with product-line teams putting greater emphasis on customer
insights and market opportunities to deliver more consumer driven
products and services. This customer-focused product-line approach
builds on the success already seen throughout Ford with the F-Series
team in North America, the Ranger team in Asia Pacific and the
Commercial Vehicle team in Europe.

By 2020, Ford will offer North America's freshest lineup among all
full-line automakers, with its average showroom age dropping from 5.7 to
3.3 years as it replaces three-quarters of its lineup and adds four new
trucks and SUVs. Ford has similarly aggressive product refresh plans in
other regions, including Europe and Asia.

"We're looking at every part of our business, making it more fit and
ensuring that every action we take is driven by what will serve our
customers in a way that supports our fitness and performance goals,"
Hackett said.

About Ford Motor Company

Ford Motor Company is a global company based in Dearborn, Michigan. The
company designs, manufactures, markets and services a full line of Ford
cars, trucks, SUVs, electrified vehicles and Lincoln luxury vehicles,
provides financial services through Ford Motor Credit Company and is
pursuing leadership positions in electrification, autonomous vehicles
and mobility solutions. Ford employs approximately 202,000 people
worldwide. For more information regarding Ford, its products and Ford
Motor Credit Company, please visit www.corporate.ford.com.

For news releases, related materials and high-resolution photos and
video, visit www.media.ford.com.

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