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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 2009 Progress On Track?
Execute our "ONE Ford" transformational plan to create a leaner, more-efficient global enterprise. Offered 42,000 hourly employees two opportunities to accept buyout and early retirement offers. Worked with the UAW to restructure health care coverage for current and future retirees. On Track
Achieve profitability in 2011. Posted the first full year of positive net income since 2005. Based on our improving performance, the gradually strengthening economy and our present assumptions, expect to deliver solid profits for 2010 with positive Automotive operating-related cash flow. 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. On Track
Reverse the trend of losing money on small car production in the United States. Continued to increase the 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 2009 Progress On Track?
Products
Reduce CO2 emissions of our 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
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 both the United States and Europe, and we will continue to do so in future product launches. 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 metric tons gross vehicle mass by 2010; requires an overall reduction in average CO2 emissions of 12 percent between 2002 and 2010. Met this goal in 2009. Industry is working on a new target for Australia for 2015 and 2020. 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. Met the first target in 2007. On track to meet the 2010 target. On Track
Manufacturing
Continuous improvement in energy efficiency; 2009 goal is a 3 percent improvement. Met commitment to reduce facilities emissions by 3 percent in 2009 vs. 2008. Improved energy efficiency in North America by 4.6 percent; improved it globally by 8 percent. 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 in Australia, Canada, Mexico, the Philippines and the United States, as well as in Chongqing, China. In 2009, added voluntary reporting in Brazil and for all of China. On Track

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

Mobility

Goal/Commitment 2009 Progress On Track?
Develop partnerships and projects to explore solutions to urban mobility challenges. Continued to catalyze and conduct dialogues with key regional stakeholders, exploring sustainable mobility projects in Atlanta, Georgia; Richmond, Virginia; Seattle, Washington; Portland, Oregon; and Los Angeles, California. On Track

Human Rights

Goal/Commitment 2009 Progress On Track?
Ford Facilities
Maintain and demonstrate compliance with Ford's Code of Basic Working Conditions. Completed assessments at Ford-owned plants in Canada, Venezuela, Brazil and Romania, as well as joint-venture plants in Thailand and China. 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 2009, trained 1,773 managers at 1,478 supplier companies and assessed more than 600 suppliers in 17 priority countries. On Track
Align policies and practices with key production suppliers to protect working conditions. Enabled 24 suppliers to complete Phase 1 (aligned code); 11 suppliers to complete Phase 2 (internal training and compliance management systems); and 7 suppliers to complete Phase 3 (extension of expectations to suppliers with supporting management systems). Held two meetings (in Dearborn, Michigan, and Cologne, Germany) attended by senior management in support of alignment implementation with our Aligned Business Framework (ABF) suppliers. Made e-learning course on responsible working conditions for procurement and supply chain managers available to ABF suppliers through the Automotive Industry Action Group (AIAG). On Track
Facilitate development of an industry-wide approach to ensuring sound working conditions in the supply chain.

Worked with the AIAG to provide facility-level training to automotive suppliers since 2007:

  • China: Trained 461 Tier 1 suppliers; information cascaded to 33,507 people at the Tier 1 supplier level and to more than 3,148 Tier 2 suppliers.
  • Mexico: Trained 494 Tier 1 suppliers; information cascaded to 75,544 people at the Tier 1 supplier level and to more than 10,462 Tier 2 suppliers.

In 2009, aligned approach and tool development with OEMs at AIAG and developed e-learning on responsible working conditions for supply chain managers. E-learning launched March 2010. Also with other OEMs at AIAG, began development of customized training programs on responsible working conditions for automotive suppliers in Brazil, India and Turkey. Training to be rolled out in 2010.

 On Track

Vehicle Safety

Goal/Commitment 2009 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. Continued to achieve high public domain ratings, and remain an industry leader in automotive safety. 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. Made SYNC®, which allows drivers to use cell phones and MP3 players more safely, available on nearly every Ford, Lincoln and Mercury vehicle. Offered radar-based accident avoidance features such as Rearview Camera with Guidelines and Volvo's City Safety. Introduced the first automotive inflatable safety belts. 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. Supported the Schumer bill, which would ban handheld texting while driving. Included modules on avoiding distracted driving in our Driving Skills for Life program. Offered MyKey®, allowing parents to program a key for their teenagers that limits certain features, such as top speed and audio volume. Offered a variety of SYNC safety features. On Track
Play a leadership role in accident research. Joined with 29 partner organizations to take part in "interactIVe," a European 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

Other Important Issues

Environment (non-climate)

Goal/Commitment 2009 Progress On Track?
Products
Expand use of the Product Sustainability Index (PSI) and Design for Sustainability principles in product development. Designed the 2009 Ford Fiesta using the PSI. On Track
Increase the use of recycled, renewable and lightweight materials. Expanded the use of soy foam seating. Introduced a soy foam headliner. Introduced wheat-grass-reinforced plastics. Expanded the 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 United States 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
Goal: Reduce water use.
2009 and 2010 targets: 6 percent reduction per year.		 Exceeded the 2009 water-reduction target of 6 percent from 2008 by 10.6 percentage points. On Track
Goal: Reduce landfill disposal.
2009 and 2010 targets: 10 percent reduction per year.		 Exceeded the 2009 landfill disposal target of 10 percent reduction from 2008 by 10.6 percentage points. On Track
Expand the use of fumes-to-fuel technology in painting facilities and reduce volatile organic compound (VOC) emissions. Did not expand the use of fumes-to-fuel in 2009. However, did reduce VOC emissions from 24 grams per square meter painted to 21 grams per square meter. On Track
Develop a comprehensive water strategy addressing environmental and social impacts of water use. Expand the use of new and innovative water- and emissions-reduction technologies. Became a founding responder of the Carbon Disclosure Project's Water Disclosure, which launched in late 2009 to help institutional investors better understand the business risks and opportunities associated with water scarcity and related issues. Expanded our use of minimum quantity lubricant parts machining, which reduces energy and water use and helps to eliminate waste. On Track

Workplace Health and Safety

Goal/Commitment 2009 Progress On Track?
Safety
Fatalities target is always zero. Experienced three employee fatalities and one contractor fatality during 2009. Not On Track
Serious injuries target is zero; objective is to be competitive with industry by 2010. Reduced total from 172 to 128. 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 2009. In early 2010, saw marked improvement in serious injury rate globally. 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. On Track

Quality

Goal/Commitment 2009 Progress On Track?
Become global quality leader; strive to be best in class in every phase of vehicle development, from design to pre-delivery. According to internal and external measures, are 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 sixth straight year. As of the first quarter 2010, had the lowest TGW of any full-line manufacturer, at 1107 per 1000 vehicles. Global warranty spending per unit declined 3 percent in 2009, compared to 2008 (excluding Volvo). Global warranty costs dropped by $0.8 billion, or 40 percent, over the 24 months from year-end 2007 to year-end 2009. Have plans in place to achieve another 9 percent improvement in warranty spending by 2014. On Track
Continue to improve customer satisfaction with our vehicles and sales and service divisions. Increased overall customer satisfaction with Ford, Lincoln and Mercury vehicles and with sales and service in the United States, but saw these measures decline slightly in Europe. Decreased sales satisfaction in the United States and Europe. Service satisfaction remained steady in the United States and declined slightly in Europe. Not On Track