Investor News

By Rebecca Kavanagh

DEARBORN, Oct. 1, 2007 -- Nobody came to Ford Motor Company and said, "Gee, I'd like a car with capless fuel fill." But customer research was showing that people were growing weary of the cap system -- tired of getting their hands dirty at the gas station, or seeing the amber dash light glow because the cap wasn’t screwed on tightly enough.

Easyfuel capless fuel system is one of five "signature technologies" that Ford is promoting on its brands, the others being SYNC, Securicode keyless entry pad, Sony/THX audio systems and Ajustable Ambient Lighting.

"In one market research study we did, 85 percent of customers said they'd pay (U.S.)$100 for a solution," says Joe Pierucci, manager, Advanced Product Strategy. "We’re going to give it to them for free."

EasyFuel is one of five Ford Signature Technologies the company has recently begun promoting exclusive from the vehicles they enhance. Rounding out the list are SYNC™, adjustable ambient lighting, name-brand audio systems and keyless entry pad, or Securicode.

"Today's customers are looking for solutions to life's everyday challenges when they purchase a vehicle, and they are looking to brands that stand for something," says Jack Palazzolo, manager, Cross Vehicle Product and Features Marketing. "Standing for something means you give the customer real solutions that no one else does. And you do it consistently across your showroom."

Indeed, each Ford Signature Technologies feature is available to some extent today, but all will be available across the entire scope of Ford, Lincoln and Mercury vehicles by the 2010 model year, either as standard or optional features.

"Winning in a crowded marketplace means bringing a unique and relevant proposition to the customer before the competition does," says Palazzolo. "So, Ford Signature Technologies are a core element of our Way Forward revitalization plan to be the No. 1 choice of our target customers."

Previously, Palazzolo says, it was easy to prioritize technology projects by saying, "We know what's best." But now the emphasis is on what the customer wants. Case in point: hands-free media device integration.

When SYNC debuted last month, it instantly became the most visible member of the Signature Technologies family. By seamlessly integrating practical and pleasurable conveniences into the driving experience, SYNC appeals to a wide range of audiences, from auto enthusiasts to technophiles to commuters.

The wireless system for making phone calls, listening to text messages and playing digital music while driving is the type of feature customers previously would have expected to find on a luxury car, not the Ford Focus with its $14,695 base price. But the revamped 2008 Focus is the first car to offer SYNC, and the feature’s $395 price tag resonates with that car’s target customer.

"It’s not by chance that the first car we’re offering this in is the Focus, our most inexpensive car," Ford spokesman Mark Schirmer said in a Sept. 23 Los Angeles Times story. "This can't be some $2,000 option that only rich people are going to put in their cars."

Already enjoying widespread media buzz, SYNC will soon be the focal point of a massive Ford Division advertising campaign. "Media buzz and word of mouth are the first wave of any successful marketing effort -- it's publicity you can’t buy," says Palazzolo. "That only happens when your product is a home run, and SYNC obviously is."

He adds that the company is confident that each of the Signature Technologies will prove to be out-of-the-park hits because they’re solving customers' problems in a big way. Because of the anticipated widespread appeal, the company plans to market many of the Signature Technologies separate from the vehicles, "making the feature the star," says Pierucci.

When exploring the idea of Ford Signature Technologies, "the challenge was: How do we differentiate a Ford product in the marketplace?" says Pierucci. "The answer was identifying certain key features unique to Ford, Lincoln or Mercury that we could then propagate across all of our products."

Once a customer has a vehicle with the Securicode keypad entry system, for example, he or she may have a hard time imagining life without that convenience. “Now they’ll know that if they become accustomed to a Signature feature, as long as they buy another Ford product, they can have it,” says Pierucci. In other words, within the span of the next few years, customers will no longer find that a feature they’ve come to love on one car is not available on their next make or model.

The ultimate goal is to engrain in customers’ minds what they can expect from a Ford Motor Company product. "Ford Signature Technologies create a repeatable environment," Pierucci says. "When someone gets into one of our cars -- whether it’s an Edge or a Taurus -- it feels like home."

Pierucci says that each of the five features is unique to Ford, but won't be for long. "We know the competition will start to copy these innovations, so the idea is to constantly update and add to brand signature content."

To qualify as a Ford Signature Technologies feature, a feature must be practical and intuitive. "This very much ties into the whole idea of Brand DNA," Pierucci says. "We're developing content that has an impact on our overall business by resonating with our target customers."