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ReprintsMulally: Ford to simplify lineup
Too many options add cost, mystify the consumer
Amy Wilson
Automotive News
October 29, 2007 - 12:01 am ET
DETROIT — Alan Mulally says Ford Motor Co. will dramatically reduce its vehicle complexity to cut costs and make ordering easier for customers. Ford vehicles will have fewer options and more standard features. The simplified lineup is under way, and Ford will build on it every year with every model, said Mulally. "We're going to have what the customer wants, packaged the way they want it," Mulally told Automotive News on Friday. The shift will make buying decisions easier for customers, he said. It reduces costs and engineering and management time for Ford. And dealers will be more likely to have models that match customer preferences. The simplification strategy is one tool Mulally is using as he tries to turn around Ford, which lost $12.6 billion in 2006. Since arriving at Ford as CEO last fall, Mulally has criticized the vast array of options and excessive parts numbers in internal meetings and in dealer and supplier forums. Although some of his other strategies — selling the same car models across the globe, for instance — will take several years to carry out, a simplified lineup of models and options can generate faster returns. Said Mulally: "You can dramatically transform that product line over a very short time." |
You can reach Amy Wilson at awilson@crain.com.
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