Job One: Ford Creates Special Group Tasked With Developing "Profitable, Competitive" Vehicles

Matt Posky
by Matt Posky
job one ford creates special group tasked with developing profitable competitive

Ford formed a team this week, called it the “Enterprise Product Line Management (EPLM) group,” and put it to work with the company’s marketing, engineering, mobility, and product development arms to overhaul the company’s product lineup. The goal is to study what customers want and use that information to build more profitable, competitive vehicles.

The team is split into ten smaller divisions that will focus their efforts on a specific model or product group — including everything from electric models to rugged off-roaders. However, EPLM won’t simply be responsible for their development — it’s also in charge of making sure customers are engaged with everything Ford offers, and that the products are brought to market swiftly, sell well, and remain profitable to manufacture. That’s a pretty full plate, if you ask us.

Ford’s profit margin for its global operations sank to less than 3 percent in the second quarter of this year, while North American margins slipped to 7.4 percent. Ford hopes to get a handle on that and raise its profit margin to 8 percent globally by 2020, with North American sitting pretty at 10 percent. EPLM is expected to be a large part of that process.

“Our most successful franchises — from F-150 to Mustang to Transit — are anchored in an obsession for the customer, deep product expertise and an unyielding commitment to strong returns,” explained Jim Farley, Ford president of global markets. “By taking this approach, we can raise the bar across our product lines. Each team will have clear accountability for winning in the marketplace and delivering profitable growth.”

Headed by Jim Baumbick (pictured), vice president of EPLM, the ten teams will be responsible for Ford’s F-Series, urban utilities, rugged utilities, family utilities, performance vehicles, commercial vehicles, electric vehicles, compact trucks, luxury vehicles, and emerging market vehicles. And those people will be incredibly busy, as the automaker intends to increase its number of nameplates by 2023. In doing so, Ford wants to possess the most new models of any manufacturer — targeting an average vehicle age of 3.3 years for its future fleet.

However, those models will also serve as a precision strike, focusing on the kind of vehicles people are most likely to buy as Ford goes about culling sedans and hatchbacks from its lineup. It places a lot of pressure on Enterprise Product Line Management, as any failures stemming from the strategy could be placed directly upon its shoulders.

[Image: Ford Motor Co.]

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  • Groovypippin Groovypippin on Aug 29, 2018

    The answer is not an ever-expanding line-up. The answer is identifying what your core products are and being committed to constant improvement and predictably frequent generational updates. Too much product at Ford is left to wither on the vine and become grossly uncompetitive. Better to stop producing something entirely than let it limp along forever as a heavily incentivized joke, ruining your brand's reputation and resale value. They need to treat their entire line-up like they treat the F-150 - 100% commitment to it being the best vehicle in its class.

  • Namesakeone Namesakeone on Aug 30, 2018

    It sounds like two forces at work here: 1.) the demand by the short-term stockholders to put their interests above all else--to cut the development of all vehicles except those of the highest profitability (which cuts R&D costs significantly but puts long-term viability at risk--but before those chickens come home to roost, these stockholders have long since cashed out), and 2.) Ford is responding to President Trump's threats to Mexican imports (remember where the Fiesta, Focus and Fusion are made) by discontinuing, among others, the models that will face a huge price increase (either by the prospect of tariffs or by the need to manufacture them in the United States), making them price-uncompetitive. (The Taurus is already pretty much a marginal car, sold mostly to fleets.)

  • Analoggrotto By the time any of Hyundai's Japanese competitors were this size and age, they produced iconic vehicles which are now highly desirable and going for good money used. But Hyundai/Kia have nothing to this point that anyone will care about in the future. Those 20k over MSRP Tellurides? Worn out junk sitting at the used car lot, worn beyond their actual age. Hyundai/Kia has not had anything comparable to the significance of CVCC, 240Z, Supra, Celica, AE86, RX-(7), 2000GT, Skyline, GT-R, WRX, Evo, Preludio, CRX, Si, Land Cruiser, NSX etc. All of this in those years where Detroiters and Teutonic prejudiced elitists were openly bashing the Japanese with racist derogatory language. Tiger Woods running off the road in a Genesis didn't open up a moment, and the Genesis Sedan featuring in Inception didn't matter any more than the Lincoln MKS showing up for a moment in Dark Knight. Hyundai/Kia are too busy attempting to re-invent others' history for themselves. But hey, they have to start somewhere and the N74 is very cool looking. Hyundai/Kia's biggest fans are auto Journalists who for almost 2 decades have been hyping them up to deafening volumes contributing further distrust in any media.
  • Bd2 Other way around.Giorgetto Giugiaro penned the Pony Coupe during the early 1970s and later used its wedge shape as the basis for the M1 and then the DMC-12.The 3G Supra was just one of many Japanese coupes to adopt the wedge shape (actually was one of the later ones).The Mitsubishi Starion, Nissan 300ZX, etc.
  • Tassos I also want one of the idiots who support the ban to explain to me how it will work.Suppose sometime (2035 or later) you cannot buy a new ICE vehicle in the UK.Q1: Will this lead to a ICE fleet resembling that of CUBA, with 100 year old '56 Chevys eventually? (in that case, just calculate the horrible extra pollution due to keeping 100 year old cars on the road)Q2: Will people be able to buy PARTS for their old cars FOREVER?Q3: Will people be allowed to jump across the Channel and buy a nice ICE in France, Germany (who makes the best cars anyway), or any place else that still sells them, and then use it in the UK?
  • Tassos Bans are ridiculous and undemocratic and smell of Middle Ages and the Inquisition. Even 2035 is hardly any better than 2030.The ALMIGHTY CONSUMER should decide, not... CARB, preferably WITHOUT the Government messing with the playing field.And if the usual clueless idiots read this and offer the tired "But Government subsidizes the oil industry too", will they EVER learn that those MINISCULE (compared to the TRILLIONS of $ size of this industry) subsidies were designed to help the SMALL Oil producers defend themselves against the "Big Oil" multinationals. Ask ANY major Oil co CEO and he will gladly tell you that you can take those tiny subsidies and shove them.
  • Dusterdude The suppliers can ask for concessions, but I wouldn’t hold my breath . With the UAW they are ultimately bound to negotiate with them. However, with suppliers , they could always find another supplier ( which in some cases would be difficult, but not impossible)