The Impressive Turnaround of Ford: Q&A with CEO Al Mulally
Summary
Al Mulally, former CEO of Ford, talks about the impressive turnaround of the company after taking over in 2006 when the car industry was struggling. He discusses how they had to move decisively to a different model that focused on the Ford brand, investing in quality, fuel efficiency, low CO, smart design, and safety. The car industry is evolving, and Ford plans to invest in all clean technologies, focusing on fuel efficiency, CO2 reduction, safety, and economics globally.
Table of Contents
- The Need for a Change of Model from a “House of Brands” to Investing in the Ford Brand
- Investment in Clean & Sustainable Technologies
- The Importance of Infrastructure and Global Energy Policy Dialogues
- The Future of Ford
Introduction
The automotive industry has undergone immense transformation over the years, and Ford has been one of the leading players in the market. Its success story can largely be attributed to the innovation and vision of its leaders, who were quick to adapt to the changing market demands. One such leader is Al Mulally, who is credited with leading a massive turnaround of Ford after he took over in 2006. In this article, we delve deeper into the insights shared by Al Mulally on the impressive turnaround of Ford.
Q&A
The Need for a Change of Model from a “House of Brands” to Investing in the Ford Brand
Q: Can you tell us why Ford had to change its business model?
A: Ford had been operating a “house of brands” model, where the company invested in multiple brands and platforms, rather than focusing on a particular brand. However, this approach was no longer sustainable as the company was struggling to compete with other innovative players in the market. We realized that we had to break the cycle and invest in the Ford brand. This decision enabled us to create a promise to our consumers that they could choose from a family of vehicles that were best in terms of quality, fuel efficiency, low CO2 emissions, smart design, and safety.
Q: How did Ford invest in the Ford brand?
A: We designed and created a roadmap that had three pillars: first, we invested in the best quality and fuel-efficient engines and transmissions; second, we developed an advanced vehicle electronic system that could be updated easily, and third, we designed our cars based on One Ford approach, which provided global vehicles that our customers would want in every market. We made a promise to consumers, and we delivered on that promise. The Ford brand became the driving force behind our success story.
Investment in Clean & Sustainable Technologies
Q: Can you give us insight into what Ford is doing to invest in clean technologies?
A: Ford understands the importance of investing in clean and sustainable technologies as we move forward towards the future, and we are committed to making a positive impact. As a car company, we plan to invest in all clean technologies, migrate towards a clean roadmap, and work towards meeting our energy goals. We are doing this through a focus on fuel efficiency, CO2 reduction, safety, and economics in mature and developing markets worldwide. We are investing in electric vehicles, particularly with partnerships with companies such as Quantum Energy Systems and TE Connectivity. We are also investing significantly in research and development to find alternative fuels such as biomass, ethanol, natural gas, and hydrogen that would allow us to generate clean energy and reduce greenhouse gas emissions, and ultimately drive sustainable business growth and bottom-line results.
Q: What is Ford doing to make clean energy more accessible?
A: One of the biggest barriers to clean energy adoption is the lack of infrastructure, which is where we are focusing our efforts. We are working to create new battery technologies, grid improvements, and charging infrastructure, composed mainly of high-speed charging stations, that can make electrified vehicles more accessible and efficient for consumers. Investing in better infrastructure and innovative technologies is crucial to make clean energy practical.
The Importance of Infrastructure and Global Energy Policy Dialogues
Q: What is your perspective on the current state of global energy policies?
A: The current state of global energy policies is challenging as many countries are still heavily dependent on non-renewable sources of energy. As a result, it is essential to engage in dialogues on energy policies to assess how we can drive sustainable business models and sustainable growth in the future. We need to be able to contribute to the conversation that needs to take place globally to drive a responsible transition to a cleaner, more reliable, and more cost-competitive energy system.
Q: How can we ensure that all nations have access to clean energy?
A: We believe that it is essential to work together to promote energy policy driven by common incentives and standards for developing and implementing renewable energy technologies within energy infrastructure projects. Through promoting such widespread standardization, we can ensure that all nations have access to clean energy.
The Future of Ford
Q: What is the future of Ford?
A: At Ford, our focus is on creating vehicles and technologies that make a positive impact on society and the environment. Our goal is to democratize transportation in the future by reducing carbon emissions and making all our vehicles more accessible with improved charging infrastructure. We are focused on innovation not only to make our lives better but to realize our dream of creating a better world. The future of Ford is about continuing to innovate, evolve, and invest in sustainable business solutions that work for our consumers, shareholders, and the planet.
