Ford’s Goals, Commitments and Status

This table summarizes Ford’s goals, commitments, targets and progress in our material issue areas and other important performance areas.

  • KEY
    • On TrackON TRACK
    • In ProcessIN PROCESS
    • Not On TrackNOT ON TRACK

Sustaining Ford

Goal/Commitment 2010 Progress On Track?
Execute our “ONE Ford” transformational plan to create a leaner, more-efficient global enterprise. Continued to strengthen our balance sheet, reducing our Automotive debt by $14.5 billion. This included the full $7 billion prepayment of our debt obligations for the UAW’s independent health care trust. On Track
Achieve profitability in 2011. Full-year 2010 net income was our highest in more than a decade. We achieved positive Automotive gross cash net of debt earlier than we anticipated. Our 2010 financial results exceeded our expectations. On Track
Align capacity to demand. Continued to globalize vehicle platforms that can be adapted to meet specific regional needs and to produce the vehicles that customers want. Retooled facilities that previously built large trucks and SUVs to instead manufacture smaller, more energy-efficient vehicles. Ended production of Mercury vehicles. On Track
Reverse the trend of losing money on small car production in the U.S. Boosted production of smaller-sized vehicles in North America and globally. Improving costs to competitive levels. Enhancing revenues through class-leading fuel economy, safety performance and quality. In Process
Develop partnerships and projects to explore solutions to urban and rural mobility challenges. Began looking at new mobility options through an “ecosystem” lens that puts vehicles in a broader transportation context. Developed a new project called SUMURR (Sustainable Urban Mobility with Uncompromised Rural Reach), with a pilot in Chennai, India. On Track

Climate Change

Goal/Commitment 2010 Progress On Track?
Products
Do our share to stabilize carbon dioxide (CO2) concentrations in the atmosphere at 450 ppm, the level generally accepted to avoid the most serious effects of climate change.
  • Expanded the climate stabilization analysis that we had undertaken previously for the U.S. and Europe to the other regions in which we operate. This analysis defines the emission reductions needed to meet our stabilization commitment.
  • Further developed our electrification strategy and launched our first electric vehicle.
  • Reduced fleet-average CO2 emissions from our 2010 model year U.S. and European new vehicles by 10.5 percent and 8.1 percent, respectively, compared to the 2006 model year.†
  • Announced three more engines with our patented EcoBoost™ fuel-saving technology. By 2013, we expect to be producing approximately 1.5 million EcoBoost engines globally, about 200,000 more than originally expected.
  • Offered four models in North America that provide 40 miles per gallon or better – compared to 2009, when our most fuel-efficient vehicle achieved 35 miles per gallon.
  • Offered 18 models in Europe that achieve a CO2 emission level of 130 grams per kilometer, and two that achieve less than 100 grams per kilometer.
 On Track
Ensure that every all-new or redesigned vehicle we introduce will be best in class or among the best in class for fuel economy in its segment. Followed through on this commitment with vehicles introduced in all our regions, and we will continue to do so in future product launches. On Track
Manufacturing
Continuously improve energy efficiency; 2010 and 2011 goals are a 3 percent improvement. Met commitment to improve facility energy-efficiency emissions by 3 percent in 2010 vs. 2009: improved global energy efficiency by 5.6 percent. Improved energy efficiency in North America by 14.4 percent compared to 2006 baseline. On Track
Reduce global facility CO2 emissions per vehicle by 30 percent by 2025. New target. Reduced 2010 CO2 emissions by 5.6 percent per vehicle compared to 2009. On Track
EU Emission Trading Scheme: Ensure compliance with Trading Scheme requirements, including third-party verification. Continued to comply with the Trading Scheme requirements. On Track
Chicago Climate Exchange: Reduce Ford’s North American facility CO2 emissions by 6 percent between 2000 and 2010 as verified by third-party auditors. Achieved this goal. On Track
Alliance of Automotive Manufacturers: Reduce industry-wide U.S. facility GHG emissions by 10 percent per vehicle produced between 2002 and 2012. On track to meet this commitment. On Track
Voluntarily report GHG emissions. Continued to voluntarily report facility CO2 emissions to national emissions registries or other authorities in Australia, Brazil, Canada, China, Mexico, the Philippines and the U.S. On Track
Supply Chain
Better understand the carbon footprint of Ford’s supply chain to inform the development of a broad-based carbon management approach for our supply chain.
  • Surveyed 35 suppliers regarding greenhouse gas emissions and achieved a 75 percent voluntary response rate via participation in the CDP Supply Chain Program and “road testing” of the WRI GHG Protocol Scope 3 Accounting and Reporting Standard.
  • Through the AIAG, helped to establish common industry guidance and a reporting format for greenhouse gas emissions, to be used by global automakers and Tier 1 suppliers.
 On Track

† Please see Sue Cischke’s letter for a discussion of our CO2-reduction goal for North America and Europe.

Water

Goal/Commitment 2010 Progress On Track?
In 2000, set target of 3 percent year-over-year water use reductions; aiming for global water reduction of 5 percent per vehicle for 2011, compared to 2010. Decreased water use per vehicle by 49 percent from 2000 to 2010. On Track
Develop new water approach. In 2010, set up new team to review water issues in a more holistic way. Became a founding responder to Water Disclosure, a Carbon Disclosure Project initiative. On Track

Supply Chain

Goal/Commitment 2010 Progress On Track?
Overall goal: Leverage Ford’s complex, global supply chain to make a positive impact in the markets in which we do business.
  • Continued to expand our three-pronged approach to engaging with suppliers on sustainability issues, through our work with individual supplier factories, with key suppliers’ corporate management, and in cooperation with other automakers to influence practices across the automotive supply chain.
  • As part of this approach, held supplier trainings on working conditions and related sustainability issues and assessed more than 750 suppliers in 17 priority countries.
 On Track
Collaborate with key production suppliers to align policies and practices to protect working conditions and responsible environmental management. Twenty percent of our strategic suppliers have met all three Ford milestones: they have codes of conduct in place that are aligned with international standards and supported by robust management systems governing their own operations and their supply chain. On Track
Facilitate development of an industry-wide approach to ensuring sound working conditions and respect for human rights in the supply chain.
  • In 2010, launched jointly sponsored training with other automakers through the AIAG in Turkey and Brazil; trained 463 suppliers.
  • Through this training and subsequent cascading process in these two countries, have impacted more than 83,300 workers and 29,600 Tier 2 suppliers.
  • Since program inception across all countries trained, the total now exceeds 1,650 Ford suppliers trained, with more than 318, 500 workers and 56,250 Tier 2 suppliers impacted.
  • With the AIAG, launched online training on supply chain working conditions and responsible procurement targeted at purchasing or supply chain managers.
  • Initiated a new work group at the AIAG focused on supply chain transparency issues such as those relating to conflict minerals.
 On Track

Vehicle Safety and Driver-Assist Technologies

Goal/Commitment 2010 Progress On Track?
Design and manufacture vehicles that achieve high levels of vehicle safety for a wide range of people over the broad spectrum of real-world conditions.
  • Remained an industry leader in vehicle safety. In fact, have earned more five-star crash-test ratings than any other manufacturer in 30 years of NHTSA testing.
  • Nearly all vehicles available with side air bags (the Safety Canopy®).
  • Made electronic stability control or Roll Stability Control™ standard on 84 percent of our 2011 model year North American nameplates; for the 2012 model year, 100 percent of North American nameplates will come standard with one of these technologies.
  • Introduced the world-first automotive inflatable rear safety belts on the new 2011 Ford Explorer in North America.
  • Used more advanced and ultra-high-strength steels than ever as part of our continuing effort to enhance the safety and fuel efficiency of our vehicles.
 On Track
Meet or exceed all regulatory requirements for safety. Continue to meet this goal every year. Ford’s internal Safety Design Guidelines and Public Domain Guidelines go beyond stringent regulatory requirements. On Track
Provide information, educational programs and advanced technologies to assist in promoting safe driving practices. Invested an additional $1 million to expand the Ford Driving Skills for Life (FDSFL) program in the U.S. from 9 to 15 states. In the FDSFL program, included modules on avoiding distracted driving. Offered MyKey®, allowing parents to program a key for their teenagers that limits certain features, such as top speed and audio volume. Unveiled Curve Control, a technology that senses – and responds – when the driver takes a curve too quickly. On Track
Play a leadership role in accident research. Launched research aimed to create one of the world’s first digital human body models of a child. The model could someday serve as a digital “dummy” for computer crash testing. In Europe, joined with 29 partner organizations to take part in “interactIVe,” a research project that seeks to support the development and implementation of active safety systems. Maintained major research alliances with the Massachusetts Institute of Technology, the University of Michigan, Northwestern University and more than 100 universities worldwide; safety is a central thrust of this work. On Track
Play a leadership role in research and development relating to “intelligent” vehicles. Doubled our investment in intelligent vehicles, formed a new 20-member task force of scientists and engineers to explore the technology’s broader possibilities, and will become the first automaker to build prototype vehicles for demonstrations across the U.S. Took part in collaborative research in the U.S. (via the Crash Avoidance Metrics Partnership) and Europe (via the “simTD” and DRIVE2X projects) to test intelligent vehicle technologies. On Track

Other Important Issues

Environment (Non-Climate and Non-Water)

Goal/Commitment 2010 Progress On Track?
Products
Expand use of the Product Sustainability Index (PSI) and Design for Sustainability principles in product development.
  • Ford Fiesta, introduced in North America in 2011, designed using PSI.
  • 2012 Ford Focus, to be introduced in North America in 2011, designed using PSI.
 On Track
Increase the use of recycled, renewable and lightweight materials.
  • Expanded use of soy foam seating; from 2011 on, all vehicles produced in North America have soy foam seating.
  • Introduced soy foam headliner.
  • Introduced wheat-straw-reinforced plastics.
  • Expanded use of recycled-content fabrics for seats and headliners.
  • Continued to develop strategy requiring recycled plastics and textile materials for many applications in North America.
 On Track
Increase the use of and certification for allergen-free and air-quality-friendly interior materials. Established global design guidelines for allergy-free materials and in-vehicle air filtration that are being migrated across product lines. On Track
Reduce the use of substances of concern. As of 2009, all Ford, Lincoln and Mercury vehicles in the U.S. are mercury-free with the exception of the Lincoln Town Car, which uses mercury in its high-intensity discharge headlamps. Have eliminated the use of lead wheel weights in North America and Europe. On Track
Manufacturing
Reduce water use. (See Water section of Goals Table.)  
Reduce CO2 emissions. (See Climate Change section of Goals Table.)  
Reduce landfill disposal, with 2010 and 2011 targets of 10 percent reduction per vehicle per year. Reduced landfill disposal in 2010 by 12.4 percent per vehicle compared to 2009. On Track

In 2010, maintain VOC emissions from painting at North American Assembly plants at 24 grams/square meter or less.

In 2011, maintain VOC emissions from painting at North American Assembly plants at 23 grams/square meter or less.

 2010 VOC emissions at North American Assembly plants were 21.6 grams/square meter. On Track

Workplace Health and Safety

Goal/Commitment 2010 Progress On Track?
Safety
Fatalities target is always zero. Experienced one employee fatality and two contractor fatalities during 2010. Not On Track
Serious injuries target is zero; objective was to be competitive with industry by 2010. Reduced total from 128 to 108. Failed to reach aggressive 50 percent reduction target. Have active interventions in place in all regions. Not On Track
Overall goal is to obtain competitive DART levels and drive continuous improvement; specific targets are set by business units yearly for five years into the future. Continued the strong continuous improvement trend on overall injury rates in 2010. On Track
Health
Improve focus on employee personal health through access to health risk appraisal and health promotion programs. Have active personal health promotion programs in place in most regions. Deployed common global metrics and developed plans to implement in remaining countries. Employee participation on health-risk appraisals now included as a core component of U.S. health benefit programs. On Track

Quality

Goal/Commitment 2010 Progress On Track?
Become global quality leader; strive to be best in class in every phase of vehicle development, from design to pre-delivery. Continued to improve Ford quality in 2010. In the U.S., Ford tied with Honda for the fewest number of “things gone wrong” (TGW) after three months in service among all full-line automakers. Ford also reduced TGW in Europe, Asia Pacific and Africa, and South America.‡ On Track
Launch new small global cars with the industry’s best quality ever, at fewer than 800 TGW per 1,000 vehicles in the first 90 days of ownership. Continue to improve initial quality and long-term durability by reducing TGW and warranty costs in every vehicle program.
  • Owners of Ford, Lincoln and Mercury vehicles reported 1,140 TGW per 1,000 vehicles, a 6 percent improvement over 2009 and the 6th consecutive year of improvement
  • Over the last three years, reduced our warranty repair rate by 40 percent in each region around the world. Global warranty spending per unit declined 13 percent in 2010, compared to 2009.
 Not On Track
Continue to improve customer satisfaction with our vehicles and sales and service divisions. Improved overall customer satisfaction at three months in service. Improved sales satisfaction in both the U.S. and Europe. Service satisfaction remained the same in the U.S. and improved in Europe. Not On Track

‡ “Things gone wrong” is measured as part of the Global Quality Research Survey (GQRS), which is conducted quarterly for Ford by the RDA Group, a market research and consulting firm.