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Ford Goals, Commitments and Status

This table summarizes Ford 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

Material Issues

Sustaining Ford

Goal/Commitment 2008 Progress On Track?
Execute our "One Ford" transformational plan to create a leaner, more efficient global enterprise Completed debt restructuring initiatives to reduce debt by $9.9 billion and lower annual interest expense by more than $500 million. Continued to reduce employment levels in North America through layoffs and buyouts. Eliminated 2009 merit increases and bonuses. Two top executives voluntarily accepted a 30 percent salary reduction for 2009/10. Reached agreement with the UAW to restructure health care coverage for current and future retirees and eliminate the "jobs bank" for laid-off union workers. On Track
Achieve profitability in 2009 Profitable in first quarter, but profits eroded in the midst of the global recession and credit crunch. Goal was revised to achieve profitability in 2011. Not On Track
Align capacity to demand Closed facilities and converted manufacturing plants to produce the vehicles that customers want. On Track
Reverse the trend of losing money on small car production in the U.S. Increased 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

Climate Change

Goal/Commitment 2008 Progress On Track?
Products
Reduce CO2 emissions of U.S. and EU new products by 30 percent by 2020, relative to a 2006 model year baseline Continued fuel economy improvements. Accelerated our electrification strategy. Worked to develop climate policies. On Track
All new vehicles to be best in class or among the best in class for fuel economy Many 2009 models and all new 2010 models released in the U.S. as of May 2009 meet this pledge. On Track
Australian Industry-wide National Average CO2 Emissions (NACE)1: Voluntary target to achieve industry-wide, national average CO2 emissions of 222 g/km for light vehicles under 3.5 tonnes gross vehicle mass by 2010; requires an overall reduction in average CO2 emissions of 12 percent between 2002 and 2010 Industry NACE was 222.4 g/km CO2 in 2008. Industry expects to achieve the target ahead of schedule in 2009. On Track
Canadian Greenhouse Gas Memorandum of Understanding: Industry-wide voluntary agreement to reduce greenhouse gases (GHGs) from the Canadian car and truck fleet by 5.3 megatonnes by 2010 compared to projected emissions Continued fuel economy improvements being made. Working with government regarding future measurement requirements. On Track
Manufacturing
Continuous improvement in energy efficiency; 2009 goal is a 3 percent improvement Did not meet 2008 goal of 3 percent improvement. Globally: 12 percent reduction in energy efficiency; 4.5% improvement in the United States. Not On Track2
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 On track to surpass emissions-reduction commitment. Globally, we have reduced our total facilities-related CO2 emissions by approximately 45 percent and emissions per vehicle by 24 percent. On Track
Alliance of Automotive Manufacturers: Reduce industry-wide U.S. facility GHG emissions by 10 percent per vehicle produced between 2002 and 2012 Industry continued to make progress on this reduction target. On Track
Voluntary GHG reporting Voluntarily reported facility CO2 emissions to national emissions registries in Australia, Canada, Mexico, the Philippines and the United States. Also reported CO2 emissions in Chongqing, China. On Track

  1. Previously known as National Average Fuel Consumption (NAFC)

  2. We experienced a reduction in global energy efficiency due to a 17 percent reduction in production during 2008. Plants in shutdown mode reduced but did not entirely eliminate their energy use. Although our energy use per vehicle produced was less efficient in 2008, we reduced global energy consumption by 7 percent due to significantly lower production volumes. From 2000 to 2008, we improved energy use per vehicle by 13.7 percent and cut overall energy use by 29 percent. In North America, we measure energy efficiency using our Energy Efficiency Index, which normalizes energy use based on an engineering calculation to adjust for variances in vehicle production and weather. The 4.5% improvement in 2008 is based on a year 2000 baseline.

Mobility

Goal/Commitment 2008 Progress On Track?
Develop partnerships and projects to explore solutions to urban mobility challenges Catalyzed the planning and testing of new mobility systems in Cape Town, South Africa; Chennai and Bangalore, India; and Atlanta, Georgia, United States. On Track

Human Rights

Goal/Commitment 2008 Progress On Track?
Ford Facilities
Maintain and demonstrate compliance with Ford's Code of Basic Working Conditions Completed assessments in the Philippines, Vietnam, and Chicago, Illinois. On Track
Supply Chain

Overall goal: Leverage Ford's complex, global supply chain to make a positive impact in the markets in which we do business

Target: Build capability/assess suppliers in 17 priority countries by 2009

 Through year-end 2008, have trained 1,621 managers at 1,317 supplier companies and assessed more than 550 suppliers in 17 priority countries. On Track
Align policies and practices with key production suppliers to protect working conditions Within context of Ford's commitments to assist Aligned Business Framework suppliers, in 2008 held two sustainability sessions attended by senior management from Ford and key production suppliers; shared resources and training materials; and assisted suppliers in aligned code development. On Track
Facilitate development of industry-wide approach to ensuring sound working conditions in supply chain

Worked with Automotive Industry Action Group to provide facility-level training to automotive suppliers since 2007:

  • China: trained 461 Tier 1 suppliers; information cascaded to 21,799 people at the Tier 1 supplier level and to more than 2,100 Tier 2 suppliers.
  • Mexico: trained 494 Tier 1 suppliers; information cascaded to 44,833 people at the Tier 1 supplier level and to more than 5,600 Tier 2 suppliers.
  • In 2008, initiated engagement at the corporate level with identified suppliers to five participating OEMs. Held two initial training events for Tier 1 purchasing management.
 On Track

Vehicle Safety

Goal/Commitment 2008 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 Achieved higher public domain ratings than ever before. Have more than one million vehicles on the road with Roll Stability Control. Nearly all vehicles now available with side air bags (the Safety Canopy). Introduced new accident avoidance features such as Rearview Camera with Guidelines and Volvo's City Safety. Introduced SYNC 911 Assist as a key post-crash/injury mitigation technology. 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 basic regulatory requirements. On Track
Provide information, educational programs and advanced technologies to assist in promoting safe driving practices Developed and implemented Driving Skills for Life in Southeast Asia. Introduced MyKey. Unveiled new SYNC safety features. Continued the See Me Safe program. On Track
Play a leadership role in accident research Continued to be involved in the German In-depth Accident Study, the United Kingdom Co-operative Crash Injury Study, the Global Road Safety Initiative and the Australian National Crash In-depth Study. On Track

Other Important Issues

Environment (non-climate)

Goal/Commitment 2008 Progress On Track?
Products
Expand use of the Product Sustainability Index (PSI) and Design for Sustainability principles in product development Developed two additional vehicles using the PSI – the 2008 Ford Kuga and 2009 Ford Fiesta. On Track
Increase the use of recycled, renewable and lightweight materials Expanded use of soy foam seating in the U.S. and natural-fiber-reinforced compression-molded parts in multiple European vehicles. Implemented lightweight aluminum/magnesium parts on multiple vehicles. Developed a standard/cross-vehicle recycled plastic resin purchasing and parts implementation strategy to use recycled plastics in underbody and other exterior parts, as well as recycled content standards for seating and headliners in all new or significantly redesigned U.S. vehicles. On Track
Reduce the use of substances of concern Expanded the range of vehicles certified for interior air quality by TÜV Rheinland. Continued to eliminate mercury by implementing mercury-free navigation and entertainment screens and to eliminate lead wheel weights by switching to steel in all light-duty vehicles in the U.S. On Track
Manufacturing
Goal: Reduce water use
2009 target: 6 percent reduction		 Exceeded the 2008 water-reduction goal of 3 percent from 2007 by 21 percentage points. On Track
Goal: Reduce landfill disposal
2009 target: 10 percent reduction		 Exceeded 2008 target of reducing landfill waste per vehicle by 5 percent from 2007 On Track
Expand the use of fumes-to-fuel technology in painting facilities, which reduces energy use and volatile organic compound emissions Implemented second fumes-to-fuel technology system at the Oakville Assembly plant. On Track
Expand the use of new and innovative water and emissions-reduction technologies at additional manufacturing facilities Expanded use of robotic parts washing systems and minimum quantity lubricant parts machining technologies, which reduce energy and water use and eliminate waste. On Track

Workplace Safety

Goal/Commitment 2008 Progress On Track?
Safety
Fatalities target is always zero Experienced two employee and two contractor fatalities during 2008. Improved over 2007 but any work-related fatality is unacceptable. Not On Track
Serious injuries target is zero; objective is to be competitive with industry by 2010 Reduced total from 207 to 172. Failed to reach aggressive 50 percent reduction target. 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 5 years into the future Met 2008 targets in all regions. Reached competitive levels in North America two years ahead of plan. On Track
Health
Improve focus on employee personal health through access to health risk appraisal and health promotion programs Most regions have active personal health promotion programs in place. Common global metrics were deployed and plans to implement in remaining countries were developed. On Track

Quality

Goal/Commitment 2008 Progress On Track?
Become global quality leader; strive to be best in class in every phase of vehicle development, from design to pre-delivery Internal and external measures continue to show the Company is making significant quality strides. Initial quality of Ford Motor Company vehicles has surpassed Honda and is in a statistical tie for first place with Toyota. On Track
Launch new small global cars with the industry's best quality ever, at fewer than 800 "things gone wrong" (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 Decreased TGW for fifth straight year in 2008. Ford brand improved more than industry average by decreasing problems per 100 by 22 according to third-party assessment of MY2006 vehicles. Warranty repair rate for Ford, Lincoln and Mercury vehicles in the U.S. is almost 50 percent lower than it was in 2004, reducing worldwide warranty repairs costs by $1.2 billion in the past two years. On Track
Continue to improve customer satisfaction with our vehicles and sales and service divisions Customer satisfaction with Ford, Lincoln and Mercury vehicles and with sales and service increased in the U.S. and Europe. On Track