Ford's Goal: Produce 8 Million Vehicles by 2017

[mackinaw]

From today's Automotive News, via Reuters:

 

 

DETROIT (Reuters) -- Ford Motor Co. mapped out a plan to build one-third more vehicles globally by adding more plants in emerging markets, overhauling its production methods and running most of its factories around the clock by 2017, executives said on Monday. The No. 2 U.S. automaker aims to build around 8 million vehicles worldwide by the middle of the decade, up from about 6 million cars and trucks this year. These efforts build on CEO Alan Mulally's "One Ford" system to cut costs and boost output by adopting a unified manufacturing strategy. This strategy is the cornerstone of Mulally's restructuring of Ford over the last seven years.

"As we've restructured and kept with our core principle of keeping capacity sized with demand, we're now able to fully utilize capacity around the world and get our absolute maximum from them," John Fleming, Ford's head of global manufacturing, told reporters at Ford's Michigan Assembly Plant."

Read more: http://www.autonews.com/article/20131008/OEM01/131009875/ford-targets-one-third-increase-in-global-capacity-within-5-years#ixzz2h9MwssGQ

[theoldwizard]

30% growth in 5 years ? Did they move the Glass House to Colorado and are serving those new "tasty" baked goods to the folks on the top floor ? There are just way too many variables in this equation with the biggest one being world wide economic growth.

 

Alan will be long gone and Mark Field will look like a idiot who "can not execute" !! Maybe Mark should plan a retirement in say, early 2017 ?

 

Of course none of this is officially "official" !

 

I still want to see how Ford is going to "balance" production at it NA assembly plants. Flex/MkT is pretty much a "dead man walking". I really don't expect the next Edge/MkX to set records. So what product is going into Oakville now that they have committed million in to retooling it ? Michigan Assembly and Chicago could both use some volume "relief". And what, if anything, are they going to do with WAP ?

Edited October 8, 2013 by theoldwizard

[silvrsvt]

Most of the growth is coming from overseas, not in North America....

[SoonerLS]

Most of the growth is coming from overseas, not in North America....

If they start ramping up sales in China, 30% growth might be on the conservative side. I wonder how much of that includes projects like Flat Rock to add capacity for production-constrained vehicles?

[NickF1011]

I still want to see how Ford is going to "balance" production at it NA assembly plants. Flex/MkT is pretty much a "dead man walking". I really don't expect the next Edge/MkX to set records. So what product is going into Oakville now that they have committed million in to retooling it ? Michigan Assembly and Chicago could both use some volume "relief". And what, if anything, are they going to do with WAP ?

 

With a likely increase in the popularity of smaller cars, I wouldn't be shocked to see it as overflow for more Escape/MKC or perhaps all-new B- or C-segment entries.

[2b2]

umm

...I still want to see how Ford is going to "balance" production at it NA assembly plants. Flex/MkT is pretty much a "dead man walking". I really don't expect the next Edge/MkX to set records. So what product is going into Oakville now that they have committed million in to retooling it ? Michigan Assembly and Chicago could both use some volume "relief". And what, if anything, are they going to do with WAP ?

 

Chicago needs "volume" relief?

 

that's news to me

[jpd80]

By 2017, when Ford will have around 80 factories, Ford plans to build nearly all its cars and trucks off nine platforms, down from 15 currently.

By that year, Ford factories will be able to build an average of 4 different models or derivatives, up from an average of just over 3 currently.

 

Ninety percent of Ford's global plants will run three shifts by 2017, which would boost production by 30 percent. Currently about 65 percent

of Ford factories run three shifts.

 

Ford is also building 14 new factories as part of a global expansion that began in 2011 in countries like China and India.

The automaker is betting these moves will allow it to respond more quickly to changing consumer tastes. By 2017, Ford will launch 114 new

or modified vehicles worldwide.

Ford aims to further improve its manufacturing flexibility and speed by adopting such advanced techniques as 3D printing of prototype parts.

The technology, dubbed F3T or Ford Freeform Fabrication Technology, allows prototype stamping molds to be made within three business days,

compared to up to 6 months.

 

Paul Mascarenas, Ford's chief technical officer, would not specify the cost savings of this technology but said they were "very significant."

He added that Ford could license its F3T technology "if appropriate."

Read more: http://www.autonews.com/article/20131008/OEM01/131009875/ford-targets-one-third-increase-in-global-capacity-within-5-years#ixzz2hAI2MBjH

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Edited October 8, 2013 by jpd80

[EBFlex]

30% growth in 5 years ? Did they move the Glass House to Colorado and are serving those new "tasty" baked goods to the folks on the top floor ? There are just way too many variables in this equation with the biggest one being world wide economic growth.

 

Alan will be long gone and Mark Field will look like a idiot who "can not execute" !! Maybe Mark should plan a retirement in say, early 2017 ?

 

Of course none of this is officially "official" !

 

I still want to see how Ford is going to "balance" production at it NA assembly plants. Flex/MkT is pretty much a "dead man walking". I really don't expect the next Edge/MkX to set records. So what product is going into Oakville now that they have committed million in to retooling it ? Michigan Assembly and Chicago could both use some volume "relief". And what, if anything, are they going to do with WAP ?

 

The question is, can they sell them? They can make all the vehicles they want.

[atomcat68]

 

The question is, can they sell them? They can make all the vehicles they want.

They have to try. Remember, they are discussing the worldwide market and the explosive growth is in China, India, and the rest of Asia. It is a gamble, but someone is going to take that market share, and I would be fighting for it if I were in Ford's position.

[jpd80]

Every plant in the world working thre shifts is an extremely optimistic view and if you think about,

that scenario leaves no room for error sin supply or production quality.

 

It's easy to see why Ford is making higher profits, it's driving plants and people flat out,

We haven's seen dedication to profitability on this scale from Ford in decades.

[silvrsvt]

I still want to see how Ford is going to "balance" production at it NA assembly plants. Flex/MkT is pretty much a "dead man walking". I really don't expect the next Edge/MkX to set records. So what product is going into Oakville now that they have committed million in to retooling it ? Michigan Assembly and Chicago could both use some volume "relief". And what, if anything, are they going to do with WAP ?

 

I dunno Chicago is at 217621 units sold this year so far...they should be around 250K or so by the end of the year without worrying about adding a shift.

 

As for Oakville, the Edge and MKX have sold about 120K units this year so far..not bad for a product that hasn't seen a major refresh for a couple years and is due for replacement in the next 18 months or so.

[fordmantpw]

 

The question is, can they sell them? They can make all the vehicles they want.

 

You should know by now that Ford is not GM. Ford won't make them if they can't sell them. If they can't be sold profitably, they won't build 'em.

[jpd80]

Currently, Ford is selling every one of the 6 million vehicles it will produce this year,

I don't see any reason whay selling int expanding markets like China, Asia and India

won't see those numbers increase significantly.

 

One question I have is how Ford will get MAP onto three shifts, Focus and C-Max

don't seem to be increasing in volume and still uses the one final trim line for

all models produced.

[2b2]

Every plant in the world working three shifts is an extremely optimistic view and if you think about,

that scenario leaves no room for error sin supply or production quality...

 

it also seems to make 'whitespace vehicles' less doable imho

 

or is Ford's dance card full?

I know Lincoln's is nowhere near that...

[jpd80]

 

it also seems to make 'whitespace vehicles' less doable imho

 

or is Ford's dance card full?

I know Lincoln's is nowhere near that...

Meh, Lincoln is incremental production on Ford platforms, I don't see

that being a problem for Ford production plants in USA or China.

[theoldwizard]

The question is, can they sell them? They can make all the vehicles they want.

THANK YOU !

 

There is a lot of talk about sales in China. Chine is having a full blown crisis with air pollution and mult-day traffic jams. They have curtailed driving. I expect emission regulation are going to get more severe, increasing the cost of a personal vehicle. Fuel is getting more expensive.

 

They have all of the problem the West has plus millions of people heating homes with open air coal burning.

 

This van not go on forever and I expect run away growth of personal vehicles to come to an abrupt and severe slow down.

[NickF1011]

THANK YOU !

 

There is a lot of talk about sales in China. Chine is having a full blown crisis with air pollution and mult-day traffic jams. They have curtailed driving. I expect emission regulation are going to get more severe, increasing the cost of a personal vehicle. Fuel is getting more expensive.

 

They have all of the problem the West has plus millions of people heating homes with open air coal burning.

 

This van not go on forever and I expect run away growth of personal vehicles to come to an abrupt and severe slow down.

 

It will slow down eventually, but it doesn't seem likely within the next 5-10 years. It may be difficult to tell when the slowdown will eventually come, but it seems a pretty safe bet that it won't be in the immediate future.

 

In any case, Ford needs a larger Asian manufacturing footprint. As those vehicle prices increase, it will become ever more expensive to import vehicles there instead of producing them regionally.

 

The market will mature at some point like all new markets do, but in the meantime, full steam ahead!

Edited October 10, 2013 by NickF1011

[mackinaw]

China vehicle sales in 2013 = 20 million. Projected China sales in 2020 = 32 million. Ford's China expansion is in western China, not Beijing, etc. where you find the problems you mention. Considering that Ford's China sales will hit one million this year (or at least close to it), it shouldn't be hard to hit two or three million once they have the capacity. Even at these numbers, they will still be considerably behind Volkswagen and GM (who are also building more plants and expanding into western China). Even if the China train stops today, their market still dwarfs ours.

Edited October 10, 2013 by mackinaw

[jpd80]

THANK YOU !

 

There is a lot of talk about sales in China. Chine is having a full blown crisis with air pollution and mult-day traffic jams. They have curtailed driving. I expect emission regulation are going to get more severe, increasing the cost of a personal vehicle. Fuel is getting more expensive.

 

They have all of the problem the West has plus millions of people heating homes with open air coal burning.

 

This van not go on forever and I expect run away growth of personal vehicles to come to an abrupt and severe slow down.

China has just moved from Euro 4 (2008) to Euro 5 this year (Jan 2013) but as too the rest of it,

I doubt that there will be any significant slow down in the next few years.

 

Ford is about to open another four production plants there - that's catch up in a big way..

Edited October 10, 2013 by jpd80

[EBFlex]

 

You should know by now that Ford is not GM. Ford won't make them if they can't sell them. If they can't be sold profitably, they won't build 'em.

 

Ha! Yeah, ok.

[fordmantpw]

 

Ha! Yeah, ok.

 

[jpd80]

Put the troll on ignore.

[Edstock]

Put the troll on ignore.

 

Aw, then you won't get to pull out the bugzapper.

 

GM has spent way more money for less profit.