Ford CEO Mark Fields says the automaker is exploring new ideas
Skip to main content
Sister Publication Links
  • Automotive News Canada
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
AN-LOGO-BLUE
Subscribe
  • Subscribe
  • Account
  • login
  • HOME
  • NEWS
    • Dealers
    • Automakers & Suppliers
    • News by Brand
    • Cars & Concepts
    • Coronavirus Coverage
    • China
    • Shift
    • Mobility Report
    • Special Reports
    • Digital Edition Archive
    • This Week's Issue
    • CarMax
      CarMax plans bonuses for 22,000 employees to reward pandemic efforts
      COVID-19 vaccines reaching auto plants, but challenges remain
      Working online to book COVID shots, office manager Billie Jean Pellet “typed so fast smoke came off the keyboard,” said dealer Earl Stewart.
      Dealership team hunts for vaccine
      Hope stalls for rebound in European auto sales
    • Sanden's plant in the north China port city of Tianjin
      Hisense to acquire Japanese auto air-conditioner maker Sanden
      A Cadillac XT5 fitted with the 48-volt system 
      Cadillac launches XT5, XT6 fitted with 48-volt system
      Chinese tech companies are turning their sights on EVs
      Telecom firm ZTE preparing electric vehicle product line
      Changan
      Huawei, battered by U.S. sanctions, plans foray into EVs, report says
    • The industry is racing to modernize the way in which EVs are built
      As EV output explodes in China, e-axle drive assembly automates
      Plus to roll big rigs on a ‘continuum' toward self-driving future
      Lidar moves beyond vehicles to underpin a reimagined logistics chain
    • The Cruise AV autonomous vehicle, based on the Chevy Bolt
      GM-backed Cruise is in talks to buy startup Voyage, report says
      Fisker's next wave: A premium people's car
      A worker fixes a power line in Austin, Texas, last month.
      Bidirectional EVs could lend a hand in power crisis
      Toyota banks on plug-ins as rivals push BEVs
    • Elon Musk interview
      Tesla’s Model Y, on sale since March, is a showcase of EV technologies competitors will benchmark.
      Technologies of Electrification
      Cadillac’s Lyriq EV will be unveiled Aug. 6.
      Future Product Pipeline
      A CALL TO ACTION
    • COVID-19 vaccines reaching auto plants, but challenges remain
      Cars parked at a Ford dealership lot
      In SPACs, dealers see viable option to go public
      New-school solution for recruiting auto techs
      Is your dealership a great place to work?
    • Access F&I
    • Fixed Ops Journal
    • Marketing
    • Used Cars
    • Retail Technology
    • Sales
    • Best Practices
    • Dealership Buy/Sell
    • NADA
    • NADA Show
    • Automakers
    • Manufacturing
    • Suppliers
    • Regulations & Safety
    • Executives
    • Talk From The Top
    • Leading Women Network
    • Guide to Economic Development
    • PACE Awards
    • Management Briefing Seminars
    • World Congress
    • Aston Martin
    • BMW
      • Mini
      • Rolls-Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Genesis
      • Kia
    • Mazda
    • McLaren
    • Mitsubishi
    • Nissan
      • Infiniti
    • Stellantis
      • Alfa Romeo
      • Citroen
      • Chrysler
      • Dodge
      • Ferrari
      • Fiat
      • Jeep
      • Lancia
      • Maserati
      • Opel
      • Peugeot
      • Ram
      • Vauxhall
    • Renault
    • Subaru
    • Suzuki
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
      • Seat
      • Skoda
    • Volvo
    • (Discontinued Brands)
    • Virtual reveals (Sponsored)
      • MITSUBISHI: 2022 Outlander
      • NISSAN: 2022 Pathfinder and 2022 Frontier
      • GENESIS: 2021 GV80
      • KIA: 2021 K5
      • LEXUS: 2021 IS
      • NISSAN: 2021 Rogue
      • TOYOTA: 2021 Venza and 2021 Sienna
    • Auto Shows
    • Future Product Pipeline
    • Photo Galleries
    • Car Cutaways
    • Design
  • OPINION
    • Blogs
    • Cartoons
    • Keith Crain
    • Automotive Views with Jason Stein
    • Columnists
    • China Commentary
    • Editorials
    • Letters to the Editor
    • Send us a Letter
    • Fisker gets a rare second chance to build his own car company
      The new Stellantis pickup: Schrödinger's Dakota
      Gerry McGovern is right man to steer Jaguar reinvention
      Forget the Ford GT; Moray Callum's biggest hit is the aluminum F-150
    • Jaguar is about to undergo its fourth reinvention in five decades as owner Tata Group takes a second crack at shaking up a brand whose glorious past has rarely translated into a profitable present or sustainable future.
      Jaguar Redo, Part IV
      view gallery
      1 photos
      Chip Shortage
      Record Dealer Profits
      view gallery
      10 photos
      Leo Michael Cartoons - Q1 2021
      Dealers hiring from hospitality sector
      view gallery
      1 photos
      Hospitality Hires
    • Shifting gears away from the stick shift
      SEMA still a wonderful circus
      Penske still has plenty of races to win
      Ford's turn in the hot seat
    • March 2, 2021 | Will EV bets pay off?
      February 23, 2021 | Reliability continues to soar
      February 16, 2021 | Apple looks to take bite out of automotive
      February 9, 2021 | ‘Super’ opportunity for automakers
    • Jamie Butters
      EV plans and some damn lies
      Mark Paul
      What dealers can do if D.C. power shift affects recalls
      Reinvention of Jaguar is a tall task for McGovern
      Are we in the midst of a fourth industrial revolution?
    • Geely HQ
      Why Geely wants to be a contract manufacturer
      Shanghai hints at how Chinese cities will pursue electrification
      How Tesla, GM transformed EV market in 2020
      Is sales recovery nearing an end?
    • U.S. Dealership lot
      Lean lots won't last without new dealer discipline
      Taiwan Semicon microchips BB web.jpg
      Chip shortage shows need for new thinking
      Digital demands squeeze smaller auto retailers
      President Joe Biden’s move to electrify all government vehicles could push forward charging infrastructure development.
      Dealers aren't wrong to be wary of EV hype
    • New look at Nissan a positive sign
      Embrace EV ideas at our doorstep
      Buying EV without dealer is just easier
      Dealers are right to worry about EVs
  • DATA CENTER
  • VIDEO
    • AutoNews Now
    • First Shift
    • Special Video Reports
    • Weekend Drive
    • AutoNews Now: Next parts shortage could be foam for seats
      AutoNews Now: Chip woes persist: GM extending output cuts
      AutoNews Now: Toyota, Mazda, Subaru, Hyundai, Kia slide in Feb.; Volvo, Genesis rise
      AutoNews Now: Toyota RAV4 probed for fire risk
    • First Shift: Ford criticized by ITC for SK Innovation battery deal
      First Shift: GM, LG Chem mull second U.S. battery plant
      First Shift: Stellantis aims for higher profit margins in 2021
      First Shift: Volvo's electric push includes online-only sales
    • Bert Ogden Auto Group
      How a Texas group is cutting costs, saving millions
      COVID, chips and checks: Sales headwinds and tailwinds for 2021
      N.J. dealer helps position peers for ‘electric revolution’
      DCH Millburn Audi
      'Finding the diamond in the rough': How 2020's No. 1 dealership retains talent
    • Why the pickup is the auto industry's 'battleground'
      Carlos Ghosn's quest to restore his reputation
      Why Ford must execute to avoid 'deep trouble'
      Why Honda is 'locked and loaded' for 2020
  • EVENTS & AWARDS
    • Events
    • Awards
    • Congress Conversations
    • Retail Forum: NADA
    • Canada Congress
    • Europe Congress Conversations
    • Leading Women Conference
    • Fixed Ops Journal Forum
    • ANE Shift
    • Shift: Mobility at a Crossroads
    • Shift: The Future of Mobility (CES)
    • 100 Leading Women
    • 40 Under 40 Retail
    • All-Stars
    • Best Dealerships To Work For
    • PACE Program
    • Rising Stars
    • Europe Rising Stars
  • JOBS
  • AN Solutions
  • +MORE
    • Leading Women Network
    • Podcasts
    • Webinars
    • In the Driver's Seat
    • Publishing Partners
    • Classifieds
    • Companies on the Move
    • People on the Move
    • Newsletters
    • Contact Us
    • Media Kit
    • RSS Feeds
    • Shift: A Podcast About Mobility
    • Special Reports Podcasts
    • Daily Drive Podcasts
    • AAM
    • DealerPolicy
    • Gentex
    • Reputation.com
    • Ricardo
    • Ricardo
    • Allstate: Want more from your F&I?
    • Ally: Navigating the future of automotive retailing
    • Amazon Web Services: Any place, any time, any channel
    • Amazon Web Services: The power of the cloud
    • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
    • Epic Games: Transforming the auto industry with digital assets
    • FTI Consulting: Crisis as a catalyst for change
    • Google: 5 trends shaping the auto industry's approach to a new normal
    • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
    • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
    • IHS Markit: COVID-19: The future mobility delusion
    • Level5: 2020 Automotive E-Commerce Report
    • Naked Lime: Bring social reputation together as part of big-picture marketing
    • Wells Fargo Auto: Switching gears from LIBOR to SOFR
    • Ally: Do It Right
    • DealerSocket
    • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
    • Facebook: The road to a zero-friction future
    • Guide To Economic Development
    • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
MENU
Breadcrumb
  1. Home
  2. Talk From the Top
December 21, 2015 12:00 AM

Ford CEO Mark Fields: With an eye on the future, the automaker explores new ideas

Dave Guilford
Dave Versical
Nick Bunkley
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    CEO Mark Fields gives an update on Ford's Smart Mobility effort. "It's not about just going from an old business to a new business. It's about going to a bigger business."

    "Our main priority is to run a disciplined, profitable business. Going out and chasing market share is not part of our plan."

    DETROIT -- More than a year into his tenure as CEO of Ford Motor Co., Mark Fields has a redesigned F-150 and two updated SUVs at his disposal just as demand for those types of vehicles is surging. Amid that fortuitous timing, Fields is also trying to position Ford for a time when gasoline is more expensive again and fewer consumers want to own cars at all.

    This month, he announced a $4.5 billion investment to develop more electrified vehicles over the next five years, even though sales of plug-ins and hybrids are slow at the moment. He also said Ford is radically changing its product-development process in the hopes of making vehicles that better fit people's changing needs. And through the Smart Mobility initiative he started, Fields is pushing the automaker to explore new ideas such as e-bikes that help drivers get through congested streets and an Uber-like shuttle service for employees that eventually could help Ford move beyond selling cars by getting into the ride-hailing business.

    Fields, 54, was interviewed at Ford headquarters in Dearborn, Mich., by Staff Reporter Nick Bunkley, News Editor Dave Guilford and Dave Versical, director of editorial operations.

    Q: What's your expectation for industry sales in the next few years, as gasoline prices and interest rates rise?

    A: I think the next couple of years for the industry could stay at a very healthy level. Do I think it's going to grow another 10, 15, 20 percent? Probably not, just because of capacity. But the state of the labor market is very healthy -- wages and incomes are growing.

    I keep reminding folks that the Fed, if and when they raise rates, it's a sign of a healthy economy. The Fed raised rates on Dec. 18. With housing starts and new home sales that are still below pre-recession levels, I think that bodes well for the industry.

    To what extent is your plan to invest $4.5 billion in electrified vehicles driven by regulations rather than consumer demand?

    It's a big piece of it. In this business you have to project where you see consumer demand going forward. We have to project out four or five years. How you view things depends upon where you stand. Right now, where we stand, gas is very inexpensive. Think about 4 or 5 years ago, where gas was. It was a little bit different. We have to project out, and our view ongoing is still that the price of a barrel of oil is going to go up over time. So it's really important for us to anticipate that.

    Secondly, we have the [corporate average fuel economy] regulations that are out there -- the one national standard -- and we have to meet that. And that's why the midterm review becomes so important for us, because we want to make the investments.

    But at the same time there has to be a market there for it. And that midterm review was all about agreeing with the government on looking at the consumer acceptance of the technology, looking at the costs -- to the companies, to the consumers, what impact it may have on jobs and things of that nature. So we're looking forward to that discussion.

    What's your plan going into the midterm CAFE review?

    Overall, we want it to be very fact-based. We'll have to look at what has been the acceptance of the technology. It's more than a bit challenging. There's probably 50 or 60 electrified vehicles in the marketplace. Year to date, it's a little over 2.5 percent of the total industry. Four years ago, there were maybe 10 or 12 models, and it was about 2.5 percent of the industry.

    We want it just very fact-based -- lay it out. We want to be part of the solution. But we want to make sure it works for consumers and it works for us as a company.

    With transaction prices and profits up, are you able to try to regain some market share?

    Our main priority is to run a disciplined, profitable business. Going out and chasing market share is not part of our plan.

    You have said that Ford is reimagining product development. How will that work?

    This is very different. We're calling this experience-led development.

    In addition to normal market research, where you ask very practical and specific questions, we're doing something called ethnographic research. It's a subset of anthropology that tries to see how people live their lives.

    So we actually have Ford researchers and folks going out, living with people for a time, videoing them and seeing how they live their lives.

    The beauty of it is not only does it help you focus on an experience, but it also, rapidly at early stages of a program, allows you to eliminate certain features that really aren't relevant to a consumer.

    How has the Ford F-150 redesign gone compared with your expectations?

    We are really pleased with the F-150 launch. We were right on plan. We did a lot of planning upfront, starting back in 2010. Our supplier partners have delivered exactly to plan, and that's allowed us to have a product that is a smash hit in the marketplace. It goes from strength to strength.

    Our retail market share in the third quarter was above the pre-changeover market share for the vehicle. You've seen the data on the transaction prices.

    How is Lincoln doing?

    I'm really encouraged with where we are on the Lincoln journey -- and, listen, we said it's a journey. We said this is going to take a number of years. When we close the books this year, we should have the second year in a row of sales growth.

    When you look at our launch in China, it's really encouraging to see not only the brand perception from Chinese consumers, but when you look at the rate of our growth -- listen, we're still relatively small, but we're ahead on our dealer openings, so we feel really good about our trajectory in China.

    Would Alan Mulally have spiked Lincoln if you had not saved it?

    We were all supportive of keeping Lincoln, but thank you for the question.

    Since you don't have an entry in the subcompact crossover segment, will the EcoSport come to the U.S.?

    Nothing to talk about at this point, but we're always looking at the marketplace and trying to discern how that drives our product plan going forward.

    What about a smaller pickup?

    Our focus, as we've said before, has been on the F-150. But, again, we'll continue to always look at the marketplace, and if there are opportunities, we'll look at them very seriously.

    Your margins are up and you had a record North American profit in the third quarter, but Ford's stock price has been flat. What more do you think Wall Street is looking for?

    We have really looked at what are the drivers of creating value in a company. The key drivers are around revenue growth, operating margin expansion and dividends. We have worked on those, we are delivering on those, and over time I think we'll get rewarded for those.

    Do we run the company to juice the stock price? Absolutely not. We run the company to run a profitable, growing organization. Our hope is that will be recognized by the market at some point.

    How much of your research is focused on your Smart Mobility effort?

    We're very committed to these emerging opportunities in Ford Smart Mobility, but clearly we want to make sure we never forget that we love and nurture that core business and make sure we're resourcing it appropriately. It's not about just going from an old business to a new business. It's about going to a bigger business.

    What have you learned from your Silicon Valley research lab?

    Being part of that community has allowed us to uncover things that we otherwise wouldn't have uncovered being in another part of the country. A great example is the Apple Watch when it came out. We had an app developed in a week for one of our hybrids because we were able to have our people go and see that early on.

    Some other things we learned is that for young people and a lot of people out there, the most important thing -- yes, you have to compensate them appropriately -- but the most important thing is give them meaningful work. They want to make their dent in the universe, and what more meaningful work can we give them than designing and developing great vehicles and also helping change the way the world moves as we think about Ford Smart Mobility? We've attracted a lot of talent there.

    RECOMMENDED FOR YOU
    MIKE FLEWITT: Post-COVID, McLaren focus shifts to electrified future
    Letter
    to the
    Editor

     

     

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    MIKE FLEWITT: Post-COVID, McLaren focus shifts to electrified future
    MIKE FLEWITT: Post-COVID, McLaren focus shifts to electrified future
    TOMOMI NAKAMURA: Subaru CEO eyes market share, better quality
    TOMOMI NAKAMURA: Subaru CEO eyes market share, better quality
    HO SUNG SONG: Positioning Kia for new era in EVs
    HO SUNG SONG: Positioning Kia for new era in EVs
    Sponsored Content: Case Study: Switching from Reynolds’ DMS to DealerBuilt
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    See more newsletter options at autonews.com/newsletters.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Digital Edition
    Automotive News 3-1-21
    THIS WEEK'S EDITION
    See our archive
    Fixed Ops Journal
    Fixed Ops Journal 2-8-21
    Read the issue
    See our archive
    Get Free Newsletters

    Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    Subscribe Now
    Connect With Us
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Our mission

    The Automotive News mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in North America.

    AN-LOGO-BLUE
    Contact Us

    1155 Gratiot Avenue
    Detroit, Michigan
    48207-2997

    (877) 812-1584

    Email us

    Automotive News
    ISSN 0005-1551 (print)
    ISSN 1557-7686 (online)

    Fixed Ops Journal
    ISSN 2576-1064 (print)
    ISSN 2576-1072 (online)

    Resources
    • About us
    • Contact Us
    • Media Kit
    • Subscribe
    • Manage your account
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • NEWS
      • Dealers
        • Access F&I
        • Fixed Ops Journal
        • Marketing
        • Used Cars
        • Retail Technology
        • Sales
        • Best Practices
        • Dealership Buy/Sell
        • NADA
        • NADA Show
      • Automakers & Suppliers
        • Automakers
        • Manufacturing
        • Suppliers
        • Regulations & Safety
        • Executives
        • Talk From The Top
        • Leading Women Network
        • Guide to Economic Development
        • PACE Awards
        • Management Briefing Seminars
        • World Congress
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls-Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Genesis
          • Kia
        • Mazda
        • McLaren
        • Mitsubishi
        • Nissan
          • Infiniti
        • Stellantis
          • Alfa Romeo
          • Citroen
          • Chrysler
          • Dodge
          • Ferrari
          • Fiat
          • Jeep
          • Lancia
          • Maserati
          • Opel
          • Peugeot
          • Ram
          • Vauxhall
        • Renault
        • Subaru
        • Suzuki
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
          • Seat
          • Skoda
        • Volvo
        • (Discontinued Brands)
      • Cars & Concepts
        • Virtual reveals (Sponsored)
          • MITSUBISHI: 2022 Outlander
          • NISSAN: 2022 Pathfinder and 2022 Frontier
          • GENESIS: 2021 GV80
          • KIA: 2021 K5
          • LEXUS: 2021 IS
          • NISSAN: 2021 Rogue
          • TOYOTA: 2021 Venza and 2021 Sienna
        • Auto Shows
        • Future Product Pipeline
        • Photo Galleries
        • Car Cutaways
        • Design
      • Coronavirus Coverage
      • China
      • Shift
      • Mobility Report
      • Special Reports
      • Digital Edition Archive
      • This Week's Issue
    • OPINION
      • Blogs
      • Cartoons
      • Keith Crain
      • Automotive Views with Jason Stein
      • Columnists
      • China Commentary
      • Editorials
      • Letters to the Editor
      • Send us a Letter
    • DATA CENTER
    • VIDEO
      • AutoNews Now
      • First Shift
      • Special Video Reports
      • Weekend Drive
    • EVENTS & AWARDS
      • Events
        • Congress Conversations
        • Retail Forum: NADA
        • Canada Congress
        • Europe Congress Conversations
        • Leading Women Conference
        • Fixed Ops Journal Forum
        • ANE Shift
        • Shift: Mobility at a Crossroads
        • Shift: The Future of Mobility (CES)
      • Awards
        • 100 Leading Women
        • 40 Under 40 Retail
        • All-Stars
        • Best Dealerships To Work For
        • PACE Program
        • Rising Stars
        • Europe Rising Stars
    • JOBS
    • AN Solutions
    • +MORE
      • Leading Women Network
      • Podcasts
        • Shift: A Podcast About Mobility
        • Special Reports Podcasts
        • Daily Drive Podcasts
      • Webinars
      • In the Driver's Seat
        • AAM
        • DealerPolicy
        • Gentex
        • Reputation.com
        • Ricardo
        • Ricardo
      • Publishing Partners
        • Allstate: Want more from your F&I?
        • Ally: Navigating the future of automotive retailing
        • Amazon Web Services: Any place, any time, any channel
        • Amazon Web Services: The power of the cloud
        • Amazon Web Services: Universal translator: Harnessing sensor data to build better automotive software
        • Epic Games: Transforming the auto industry with digital assets
        • FTI Consulting: Crisis as a catalyst for change
        • Google: 5 trends shaping the auto industry's approach to a new normal
        • IHS Markit: Automotive loyalty in the wake of the COVID-19 recession
        • IHS Markit: Autonomous vehicles: Automotive and transportation disruption
        • IHS Markit: COVID-19: The future mobility delusion
        • Level5: 2020 Automotive E-Commerce Report
        • Naked Lime: Bring social reputation together as part of big-picture marketing
        • Wells Fargo Auto: Switching gears from LIBOR to SOFR
        • Ally: Do It Right
        • DealerSocket
        • Deloitte: Cyber everywhere: Preparing for automotive safety in the face of cyber threats
        • Facebook: The road to a zero-friction future
        • Guide To Economic Development
        • PayPal Credit: How consumer financing helps drive sales for online auto parts retailers
      • Classifieds
      • Companies on the Move
      • People on the Move
      • Newsletters
      • Contact Us
      • Media Kit
      • RSS Feeds