Sustainability 2011/12

Year in Review

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. Please see the data sections for our complete data reporting and data notes.

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

Financial Health

Goal/Commitment 2011 Progress On Track?
Execute our “ONE Ford” transformational plan to create a leaner, more-efficient global enterprise.
  • Continued to strengthen our balance sheet in 2011, a milestone year. Increased Automotive gross cash, reduced debt and improved liquidity. Announced 2011 profit sharing and resumption of quarterly dividends.
 On Track
Achieve profitability in 2012.
  • For 2011, reported full-year pre-tax operating profit of $8.8 billion – our third year in a row of improved annual operating profits.
 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.
 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. Improved costs to competitive levels. Enhanced revenues through class-leading fuel economy, safety performance and quality.
 On Track
Set new goals under “Blueprint for Mobility” in early 2012.
  • In this Blueprint, analyzed what transportation will look like in 2025 and beyond, and identified the types of technologies, business models and partnerships needed to get us there.
 In Process
Quality
Overall goal: Deliver best-in-the-world quality; strive to be best in class in every phase of vehicle development, from design to pre-delivery.
  • We had mixed-quality performance in 2011. “Things gone wrong” (TGW) degraded in North America but improved in all our other regions. Global warranty spending improved overall but had mixed results on a region-by-region basis. Customer satisfaction improved or remained steady in all our operating regions.
 Not On Track
Continue to reduce “things gone wrong” (TGW) and warranty spending.
  • In 2011, saw full-year “things gone wrong” (TGW) degrade slightly in North America, due to new entertainment and communication technologies and transmission issues. TGW improved in our Europe, Asia Pacific and Africa and South America regions by 4 percent, 44 percent, and 29 percent respectively.
  • Global warranty spending decreased by 4 percent in 2011 compared to 2010. Warranty spending increased in North America and Asia Pacific and Africa from 2010 to 2011 by 14 percent and 8 percent respectively but decreased in Europe and South America by 21 percent and 1 percent respectively.
Not On Track
Continue to improve customer satisfaction with our vehicles and sales and service divisions.
  • Overall, saw customer satisfaction remain unchanged in the U.S. and increase by 3 percent in Europe.
  • Sales satisfaction improved in both the U.S. and Europe.
  • Service satisfaction remained the same in the U.S. and improved in Europe.
 On Track

Climate Change and the Environment

Goal/Commitment 2011 Progress On Track?
Climate Change – Products
Do our share to stabilize carbon dioxide (CO2) concentrations in the atmosphere at 450 ppm, the level that many scientists, businesses and government agencies believe may avoid the most serious effects of climate change. Reduced fleet-average CO2 emissions from our 2011 model year for U.S. new vehicles by 9 percent compared to the 2007 model year. Reduced fleet-average CO2 emissions for European vehicles by 8.5 percent from the 2006 to 2010 calendar years. 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 will continue to do so in future product launches. On Track
Climate Change - Manufacturing
Continuously improve energy efficiency including a specific goal to improve North America manufacturing energy efficiency 3 percent from 2010 to 2011. Met commitment to improve facility energy-efficiency emissions by 3 percent in 2011 vs. 2010. In fact, improved global facility energy efficiency by 10 percent in 2011 vs. 2010. Improved energy efficiency in North America by 2.6 percent compared to 2010 baseline. On Track
Reduce global facility CO2 emissions per vehicle by 30 percent by 2025 compared to a 2010 baseline. Reduced 2011 CO2 emissions by 8 percent per vehicle compared to 2010. On Track
Reduce average facility energy use per vehicle globally by 25 percent between 2011 and 2016. New goal in 2011 In Process
Environment - 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 designed using PSI.
 On Track

Increase the use of recycled, renewable and lightweight materials.

Use soy foam seat cushions and backs on 100 percent of Ford vehicles manufactured in North America.

Use at least 25 percent recycled content in seat fabrics on all new and redesigned vehicles sold in North America.
  • Expanded use of soy foam seating; introduced soy foam head restraints. From 2011 on, all vehicles produced in North America have soy foam seating.
  • 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.
  • Developed strategic principles for expanding the use of recycled and renewable materials that seek to minimize total lifecycle impacts.
 On Track
Increase the use of and certification for allergy-tested 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
Environment - Manufacturing
Reduce water use. (See Water section of Goals Table.)  
Reduce CO2 emissions. (See Climate Change section of Goals Table.)  
Reduce landfill disposal, with 2011 and 2012 targets of 10 percent reduction per vehicle per year. Reduced landfill disposal in 2011 by more than 19 percent per vehicle compared to 2010. On Track
In 2012, maintain VOC emissions from painting at North American Assembly plants at 23 grams/square meter or less. Achieved 2011 VOC emissions at North American Assembly plants of 20.4 grams/square meter. On Track

Water

Goal/Commitment 2011 Progress On Track?
Cut the amount of water used to make each vehicle by 30 percent globally by 2015, compared to 2009.
  • Reduced water use per vehicle by 8 percent from 2010 to 2011. Developed additional year-over-year water-efficiency targets, including a 2012 target of a 5 percent water-use reduction per vehicle.
 On Track

Vehicle Safety

Goal/Commitment 2011 Progress On Track?
Design and manufacture vehicles that achieve high levels of performance in public domain testing and offer innovative safety and driver assist technologies.
  • Remained an industry leader in public domain evaluations. Since the Insurance Institute for Highway Safety (IIHS) first began awarding Top Safety Picks, Ford Motor Company has earned more than any other manufacturer, with a total of 78.*
  • Received an industry-leading total of four EuroNCAP Advanced Awards for the Ford Focus, for offering Lane Keeping Aid, Active City Stop, Forward Alert and Driver Alert technologies.
  • For the new European Ford Ranger, achieved a five-star rating in the EuroNCAP assessment – the first and only pick-up to do so. Moreover, the Ranger achieved the highest rating of any vehicle ever tested by EuroNCAP for pedestrian protection.
  • Continued to provide innovative safety and driver assist features, including rear-seat inflatable safety belts, Blind Spot Information System, Lane Keeping System and Curve Control, among many others.
On Track
Meet or exceed all regulatory requirements for safety. Continue to meet this goal every year. Ford’s internal Safety Design Guidelines and other internal standards go beyond stringent regulatory requirements. Ford often establishes internal standards on emerging issues long before public domain or regulatory standards are adopted. On Track
Provide information, educational programs and advanced technologies to assist in promoting safe driving practices. Continued to invest in Ford Driving Skills for Life (FDSFL) program, focusing on teen drivers in the U.S. and first-time drivers of all ages in our Asia Pacific markets. The program includes modules on avoiding distracted driving. Offered an upgraded MyKey® system, allowing parents to program a key for their teenagers that can limit certain features (such as maximum speed and audio volume), lock out the radio when the safety belt is not buckled and invoke a Do Not Disturb feature, sending incoming phone calls and text messages to a synced phone’s mailbox. For the 2012 model year, MyKey is available on nearly all Ford Motor Company retail vehicles in North America, and its availability has expanded to other regions. On Track
Play a leadership role in vehicle safety research. Continued involvement in interactIVe, a research project in Europe with 29 partner organizations that seeks to support the development and implementation of accident avoidance 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 connected vehicles. Continued to take part in collaborative, active-safety research in Europe known as Safe Intelligent Mobility – Test Field Germany (simTD) to investigate vehicle-to-vehicle and vehicle-to-infrastructure communications in a large-scale field operational test. Contributed to the European harmonization and standardization of wireless communication systems and applications within the framework of the DRIVing implementation and Evaluation of C2X communication technology (DRIVE C2X). Continued to take part in collaborative research in the U.S. via the Crash Avoidance Metrics Partnership (CAMP) and Vehicle Infrastructure Integration Consortium (VIIC). On Track
  1. *Historic totals include all brands and entities owned and controlled by the manufacturer during the 2006–2012 calendar years. For Ford Motor Company this includes Ford, Lincoln, Mercury and – through 2010 model year – Volvo. Totals do not include Mazda.

Supply Chain

Goal/Commitment 2011 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.
  • As part of this approach, have held supplier trainings on working conditions and related sustainability issues.
  • Since 2003, have conducted more than 830 third-party audits of existing and prospective Tier 1 suppliers in 20 countries.
  • Continued to collaborate with key production suppliers to align policies and practices. 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 2011, together with other automakers through the AIAG, trained 387 supplier companies in India, Mexico, Turkey and Brazil. Of these, 111 were Ford suppliers.
  • Through these and prior-year trainings and subsequent cascading processes in these four countries, have impacted more than 208,500 workers and 52,000 Tier 2 suppliers.
  • Since program inception across all countries trained, now exceed 1,750 Ford suppliers trained, total, with more than 373,000 workers and 76,500 Tier 2 suppliers impacted.
 On Track
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 128 suppliers, up from 35 in 2010, regarding greenhouse gas emissions, and achieved an 86 percent voluntary response rate.
 In Process

Health & Safety

Goal/Commitment 2011 Progress 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 them in remaining countries. Employee participation in health-risk appraisals now included as a core component of U.S. health benefit programs.
 On Track
Safety
Fatalities target is always zero.
  • In 2011, for the first time in Ford’s history, did not have an employee work-related fatality during the calendar year. Tragically, however, experienced two contractor fatalities – one in Brazil and another in Russia.
 Not On Track
Serious injuries target is zero; overall goal is to attain industry competitive lost-time and DART levels and drive continuous improvement; specific targets are set by business units yearly for five years into the future.
  • Saw slight deterioration in a major safety indicator – the lost-time case rate – from 0.54 in 2010 to 0.57 in 2011. Experienced 143 serious injuries among our direct employees, compared to 111 the previous year. However, were back on track with serious injuries and lost-time/DART performance in the first quarter of 2012.
 Not On Track