1. THE QUALITY JOURNEY OF FORD
Adrian Vido
Ford Motor Company
Director, Global Manufacturing Quality 1

2. Where we were…below industry
Lexus
Cadillac
Jaguar
Honda
Buick
Mercury
Hyundai
Infiniti
Toyota
Mercedes-Benz
Audi
BMW
Oldsmobile
Volvo
Acura
Chevrolet
INDUSTRY AVG
Chrysler
Dodge
Lincoln
Pontiac
Subaru
GMC
Ford
Mitsubishi
Saab
Jeep
MINI
Land Rover
Saturn
Suzuki
Kia
Nissan
Mazda
Scion
Porsche
Volkswagen
Hummer
J.D. Power and Associates 2004 Initial Quality Study
Problems Per 100 Vehicles
Ford ranks 23rd

3. VIEW FROM THE BOTTOM: BELOW AVERAGE QUALITY THREATENED FORD’S FUTURE

4. How below average quality hurt Ford….
Unsatisfied customers
Lost sales and market share
Lower resale values
Poor reputation
Loss of credibility/trust
Higher warranty costs
Low employee morale

5. Ford’s quality offensive plan….
Design in Quality
Standard global process
Global Product DNA: looks, sounds, feels like a Ford
Don’t compromise customer wants for lower cost
Verify designs further upstream through virtual tools
Build in Quality
Read every claim, every day; address in 24 hours
Virtual manufacturing to reduce worker injury/strain
Each assembly function (body, paint, etc.) has a dedicated team of problem-solvers
People Quality
Developing a critical mass of problem solvers
Ford has trained over 90,000 Green Belts, over 9,000 Black Belts and over 500 Master Black Belts worldwide
Ford has over 900 technical specialists

6. The Road Back….
Ford #1 mainstream brand
J.D. Power Initial Quality Study
2010
2009
Ford launches a new, stricter global quality standard
Ford: “World-Class Reliability”; 90% of
line-up average or
better reliability
Consumer Reports 2009
Annual Auto Issue
2008
Ford’s quality ranks below industry average
J.D. Power Initial Quality Study
2007
Ford achieves initial quality that’s equal to Toyota and Honda—the tipping point
RDA’s Global Quality Research Survey
2006
Global Product
Development System launched;
quality built-in
early
2003
2002
Things-gone-wrong
per 1,000 vehicles
Then: 2,350
Now: 1,100 in 2009

7. GQRS CUSTOMER SATISFACTION US FLM
better
Industry Improvement = 0%
FLM
VW/Audi
Honda/Acura
New GM
Hyundai/Kia
Toyota/Lexus/Scion
Nissan/Infiniti
Chrysler LLC
FLM ranks 1st in Satisfaction, improving by 2 pct. Pts.
GM Satisfaction improves 3 pct. pts. over last year, reaching 80%.

8. GQRS TGW/1000 US FLM
better
Industry Improvement = 1.9%
Chrysler LLC
VW/Audi
Hyundai/Kia
Nissan/Infiniti
Toyota/Lexus/Scion
New GM
FLM
Honda/Acura
FLM TGW continue to improve (5.5%), but does not keep pace with Honda’s improvement rate (8.6%).
FLM gives up its first place ranking but remains statistically equivalent to Honda at 95% confidence level.

9. Where we are today….#1 full-line brand
J.D. Power and Associates
2010 Initial Quality Study
Problems Per 100 Vehicles
Ford #1
Mainstream
Brand

11. Benefits of having industry-leading quality….
Customer satisfaction – 82% customer satisfaction**
Increased dealer showroom traffic
Higher U.S. sales – 20% jump in 2010
U.S. market share growth – up 16% in 2010
Better resale values – highest avg. auction value*
Improved credibility and reputation
Fewer warranty repairs – 40% lower globally v.s. 2009
Boosts employee morale
*Data Source: Vehicles 1-5 YIS, NADA AuctionNet May CYTD, Mileage and Mix Controlled, Luxury Brands Excluded
**Data Source: J.D. Power and Associates 2010 Initial Quality Study

12. Ford’s Quality Strategy
Improve our Product by identifying customer satisfaction opportunities with leading designs
Standardize and adhere to key quality Processes in Manufacturing, New Model Programs, and Product Development
Develop our People by building a world class quality organization with advanced problem-solving knowledge for improving quality and productivity
Improve our Perception by delivering and communicating proof points to stakeholders
Our Quality is fantastic; at the top of the leader boards in any measurement system. Our quality strategy goes like this:
Improve our products by:
-- Understanding the level of quality we are shipping by listening to the Voice of the Customer
-- Stop the defects right now
-- Standardize our processes
-- Develop our people into Black Belts
We do this all with strong standards and compliance to these standards.
CONTINUOUS IMPROVEMENT FOR LIFE
Commitment To Innovation And Quality Excellence: Continuous Improvement For Life 12

13. I believe Henry Ford said it best ---“Coming together is a beginning, keeping together is progress and working together is success.”
Today’s Honorees epitomize what Working Together is all about. 13

14. Have you driven a lately?
Mustang
Fiesta
Focus
Fusion
Taurus
Escape
Edge
Flex
Explorer
Expedition
Super Duty
Transit Connect
E-Series
F-150
Have you driven a lately?