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As executive director of Product Planning, Doug Szopo is deeply involved in formulating the company's global cycle plan of new and freshened cars, trucks, crossovers and powertrains. Szopo recently appeared on The Americas Webcast with Mark Fields. Below are excerpts from their conversation.
Q. Which products surprised you the most this year?
A. Initially, we weren't quite sure what we were going to do with the Taurus. We said we really needed to make a statement that we were back in the car business – that we were back with great design. The Taurus was our first opportunity to do that. We really hit the mark. I don’t know if it was surprising, but it was rewarding.
The other surprise is Fusion. It was a moderate freshening, but it really hit the mark with distinctiveness from the last model and attention to detail. Customers obviously noticed by the accolades the car has received, including the MOTOR TREND 2010 Car of the Year honor.
Q. Ford made a commitment not to scale back product plans because of the economic downturn. Looking back, how do you think that strategy has paid off?
A. It clearly is paying off for us, and not just this year, but over the next couple of years as we see how much our competitors are spending versus what we kept in the plan.
It really began with senior management's commitment to keep the plan in place. We've been working on efficiencies for years, so we were able to still meet our business needs by taking those efficiencies and flowing them to the bottom line. We also focused on what the competition was doing, so we could actually make some adjustments to the product plan – pushing our cadence out just a little bit – knowing that we would still be ahead of our competitors.
Q. How does the cycle plan come together under the ONE Ford strategy?
A. The product cycle plan is an annual process that begins by examining the business environment. We look at what's changed, what the consumer vision is and whether it's different from the previous year, and our business needs. Then, we identify the global profit pools –growth markets – where we want to enhance our product plan. Those growth areas are not just in regions like India and China, but also in Europe and North America. We look at all of the profit pools and see if they've changed. We also look at the competition. We analyze all of those factors and see where we have gaps in the current plan compared to where we want to be headed. Then we modify the plan. The last iteration of the plan, which was in September, was done globally. We shared funds and we involved Ford leadership in all regions of the world. It was our first true global cycle plan.
Q. 2010 will be a busy year for powertrains. What does Ford have coming in the way of new engines and transmissions?
A. Over a two year period, we will launch more than 30 new powertrain combinations. Just like on the vehicle front, where we have an array of products from small to large, the same is true for engines and transmissions.
In 2010, we are going to be launching a new PowerStroke 6.7-liter diesel engine that is going to be fantastic for our Super Duty truck customers, a new 5.0-liter gasoline engine that also is going to go in trucks and some of our other vehicles, and a 2.0-liter EcoBoost engine. We'll be introducing numerous powertrains that encompass the whole range of our vehicle lineup.
Q. As you look back on 2009, what are you most proud of?
A. I am most proud of our new products and they way people have come up to me and other Ford employees to tell us about the great vehicles that we have. The overwhelming positive response that customers have to our products stands out in my mind. Another thing that impresses me is how well everyone at Ford is working together through the whole enterprise.
Q. As competitors continue to launch stronger products, what will be Ford's biggest challenge over the next several years?
A. We need to continue to maintain the cadence of our product freshenings. In the past, there were instances when we introduced a great product, but didn't follow up with timely freshenings. Our cycle plan includes resources to be able to freshen the products that we have. We also work with Marketing and Sales to see where consumer trends are going. We need to continue that because it enables us to find new innovative ways to satisfy unmet customer needs with new features or new products that we call white-space areas.