IDENTIFYING NEXT PRACTICES FOR MBE DEVELOPMENT Carla Preston Director, Supplier Diversity Development 1 National Minority Supplier Development Council October 2013

Agenda / Session Objectives 2  Ford Motor Company Overview  Identifying Next Practices for MBE Development  Executive Commitment  Global Footprint  Technology and Innovation  Joint Ventures  Summary Supplier Diversity Plans Must Support Corporate Goals.

Ford Motor Company 3

 110 th anniversary June 16 th 2013  Global automotive industry leader based in Dearborn, MI  Manufactures or distributes automobiles across six continents  With about 175,000 employees and 65 plants worldwide  Automotive brands include Ford and Lincoln  Financial services provided through Ford Motor Credit Company  Philanthropic Arm: Ford Motor Co. Fund Ford Motor Company 4

ONE Ford “Henry Ford Was Talking About One Ford, One Plan, One Team and Working Together – And That Is Exactly Our One Ford Plan. We Are Using This Same Vision To Go Further Today In Developing High-Quality, Fuel-efficient, Safe and Smart Products That Customers Want and Value – And That Are Affordable – So That We Can Continue Opening Up The Highways To All Mankind.” Alan Mulally (June 2013)

Heritage “You Can’t Build A Reputation On What You Are Going To Do.” Ford’s Supplier Diversity Development’s Mission Supports ONE Ford By Working To Economically Empower Diverse Communities, To Ensure Mutual Business Success Globally And To Provide Our Customers With World-class Vehicles. 6

Identifying Next Practices for MBE Development 7

Key Elements to Identifying Next Practices 8 Executive Commitment Develop Supplier Diversity Plan Identify Strategic Opportunities Develop Defined Goals and Objectives

Executive Commitment 9

“So What's The Business Case For Diversity? It's the only business case we need. The only way to satisfy diverse customers is to include their perspectives inside the company. This is especially true for Ford, because we probably have the most diverse set of customers in the world.” 10 Alan Mulally CEO and President

Develop the Plan for Strategic Opportunities Joint Ventures / Strategic Alliances Global Footprint New Business Ventures Maintaining Business Technology and Innovation 11

Global Footprint 12

MBE Global Footprint  Ford’s largest and fastest manufacturing expansion in more than 50 years  Strategic and long term preferred MBEs support Ford globally  Driving Job Creation and Economic Growth 13 MBEs have opportunities to supply Ford globally based on commodity requirements, capacity, and footprint. MBEs are encouraged to expand presence to the extent there is a viable and sustainable business model.

Joint Ventures 14

Joint Ventures 15  Promote growth / sustainability and access to new markets and technologies  Support reinvention and revitalization of MBEs to meet challenges of a transitioning global automotive landscape  Opportunities represent increased business, diversification and job creation Prior To 2012, Ford Facilitated 13 Joint Ventures and/or Strategic Alliances between MBEs and Majority Corporations.

Technology 16

Executive Business and Technical Review 17  Ford Purchasing and Product Development Executives meet formally with select 10 – 12 suppliers globally  Suppliers present latest technologies  Ford team reviews and tracks selected supplier technologies and integrates into global product development system  Technologies have “boosted” Ford’s 2012 and 2013 vehicles Keep Ford and Key Suppliers Close, Ford Can be Abreast of Game-Changing Technologies, Capabilities, and Applications.

Technology And Innovation 18  Technology Cycle Plan  Commodity Business Plans  Joint Technology Framework  Executive Business and Technical Review By Identifying High-potential Diverse Businesses and Providing Resources to be Successful, Ford Taps a Fresh Perspective That Has Led to Cutting-edge Innovation and Helps Accelerate Development of Vehicles.

Joint Technology Framework  Industry-exclusive Initiative For Certified M/WBEs  Access to Ford Patented Ideas  Access to Ford Processes  Support from Ford Subject Matter Experts 19 Commitment to Enhance Technical Capacity and Sustainability Of Certified M/WBEs Through Access to Ford’s Intellectual Assets.

Growth Areas 20

Growth Opportunities 21 Electrification Infotainment Green Products and Facilities

Summary 22

Session Objectives 23  Identifying Next Practices for MBE Development Executive Commitment Global Footprint Joint Ventures Technology and Innovation

Success Lessons from Henry Ford “You Can’t Build A Reputation On What You Are Going To Do.” 1. Serve Others 2. Focus 3. Be Productive 4. Solve Problems 5. Nothing is Particularly Hard 6. Keep your Eyes on the Goal 7. Think 24

Shelby GT500 Thank You

26 ONE Goal ONE Plan ONE TeamONE Ford