SCOOP
PAT KEEGAN IU MBA 1988
WWW.MYCAREER .FORD.COM
SLIDE 0
TODAY’S PRESENTATION
• Ford Motor Company
• The Automotive Industry
• Finance’s Role in the Auto Industry
• Finance Organizations / Positions
WWW.MYCAREER .FORD.COM
SLIDE 1
FORD MOTOR COMPANY
TODAY, FORD IS ...
• A global company (fourth largest according to Fortune 500)
– Annual sales of $164 billion
– Worldwide vehicle sales of 6.7 million units through a network
of 20,000 dealers
– Manufacturing, vehicle assembly, or sales operations in more
than 30 countries
– Diverse, global team of 350,000 employees
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SLIDE 2
FORD MOTOR COMPANY
WE HAVE SOME OF THE WORLD’S
STRONGEST BRANDS
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SLIDE 3
OUR GLOBAL FINANCE TEAM – 4,300 STRONG
North
America
58%
South
America
10%
WWW.MYCAREER .FORD.COM
Europe
26%
AsiaPacific
6%
SLIDE 4
WHAT WE EXPECT FROM YOU
PREFERRED BACKGROUNDS – BACHELOR CANDIDATES
• Bachelor Degree with concentration in:
–
–
–
–
–
–
Finance
Accounting
Business
Economics
Math / Statistics
Or other discipline with strong quantitative skills
• GPA of at least 3.25 (on 4.0 scale)
• Eligibility for full-time, indefinite employment in the U.S.
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SLIDE 5
WHAT YOU CAN EXPECT FROM US
FINANCE CAREER FOUNDATION PROGRAM -UNDERGRADUATE
This program provides individualized, flexible, and
balanced career development
• Program Duration: about 5 years
• Number of Rotations: 3* major rotations
covering at least 2 major organizations
• Achieve MBA with corporate support
* A rotation within any of our manufacturing facilities (located
throughout the U.S.) is recommended
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SLIDE 6
WHAT YOU CAN EXPECT FROM US
PROFESSIONAL DEVELOPMENT AT ALL LEVELS
• Personnel development committees (PDC) at every
level manage the development process
• Decisions made with input from employee,
supervisor, and PDC to maximize career
development
• Professional development of employees is a key
responsibility of all levels of management
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SLIDE 7
TODAY’S PRESENTATION
• Ford Motor Company
• The Automotive Industry
• Finance’s Role in the Auto Industry
• Finance Organizations / Positions
WWW.MYCAREER .FORD.COM
SLIDE 8
FORD MOTOR COMPANY
AUTOMOTIVE INDUSTRY CHALLENGES
• Record growth in China
• Explosion of new products (especially SUVs and
Premium Products)
• Industry excess capacity
• Unprecedented Incentives
• Aggressive global competitors
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SLIDE 9
AUTO INDUSTRY
EXPLOSIVE GROWTH IN ASIA FUELS
GLOBAL AUTOMOTIVE SALES
1996 Global Sales and Share by Region
Sales
(Mils.)
Share
(Pct.)
North America
17.0
34%
Europe
15.1
Japan
2003 Global Sales and Share by Region
Sales
(Mils.)
Share
(Pct.)
North America
19.6
34%
30
Europe
17.0
29
7.1
14
China / Other Asia
10.0
17
China / Other Asia
5.3
10
Japan
5.8
10
Rest Of World
3.3
7
Rest Of World
4.1
7
South America
2.7
5
South America
2.0
3
50.5
100%
Total World
58.5
100%
Total World
Source: DRI April 2004
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SLIDE 10
AUTO INDUSTRY
GLOBAL EXCESS CAPACITY INTENSIFIES
COMPETITIVE PRESSURE IN ALL REGIONS
Worldwide Light Vehicle Capacity (Mils. Of Units)
Excess
Demand
83
77
67
20
20
18
57
63
49
Excess
Capacity (Pct.)
1996
2003
27%
26%
REGION
N. America
S. America
Asia Pacific
Europe
Row
Total
Proj. 2006 Capacity
Total
Excess
(Mils.)
(Pct.)
20
5
28
21
9
83
15%
40
25
19
44
24%
PROJ.
2006
24%
Source: Autofacts 2004.Q1 release
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SLIDE 11
AUTO INDUSTRY
NORTH AMERICA REMAINS THE PRIMARY PROFIT
DRIVER FOR ALL MAJOR MANUFACTURERS -INCREASING COMPETITIVE ACTIVITY
2003 Fiscal Year Automotive Pre-Tax Profits (Excl. One-Time Actions)*
North America
125%
10%
110%
(20)%
15%
Europe
10%
35%
30%
10%
5%
50%
55%
65%
35%
60%
ROW
13%
15%
5%
17%
45%
95%
70%
30%
20%
20%
60%
40%
(20)%
(5)%
Memo:
Auto. / Fin.
PBT (Bils.)
Ford
GM
DCX
Toyota
Honda
$3.1
$2.1
$4.9
$15.7
$5.7
VW
RenaultNissan
BMW
PSA
Total
$6.9**
$3.8
$2.4
$47.6
2003 FY
$2.8
* Includes estimated automotive and automotive financing-related profits earned on products sold in the market
** Based on 2002 calendar year data
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SLIDE 12
AUTO INDUSTRY
COMPETITION FOR U.S. MARKET SHARE INTENSIFIES
AS THE NUMBER OF NEW PRODUCTS EXPLODES
(ESPECIALLY SUV AND PREMIUM SEGMENTS)
Industry Segments
Non-Premium Products
Car
Truck
SUV
Subtotal Non-Premium
Premium / Luxury Products
Car
SUV
Subtotal Premium
Total
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Product Entries
2003
2006
2009
2003 - 2009
Change
Pct.
No.
73
60
49
182
82
64
64
210
87
66
67
220
+14
+ 6
+18
+38
+19%
+10
+37
+21%
54
24
78
65
38
103
70
41
111
+16
+17
+33
+30%
+71
+42%
260
313
331
+71
+27%



SLIDE 13
AUTO INDUSTRY
U.S. INCENTIVES CONTINUE TO RISE DESPITE
HIGH INDUSTRY VOLUMES
U. S. Industry Volume -- Ford Division Incentive Spending (Pct.)
Total U.S. Industry Volume (Mils.)
Variable Marketing Pct. of Revenue
15.8
14.8
15.4
15.1
15.5
15.5
17.8
17.5
17.1
17.0
16.0
14.2
14.1
12.5
1988
1988
17.4
1990
1990
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13.1
1992
1992
1994
1994
1996
1996
1998
1998
2000
2000
2002
2002
SLIDE 14
FORD MOTOR COMPANY
KEY AUTOMOTIVE INDUSTRY “TAKE-AWAY’s”
• Auto Industry = “Big Business”
• Global Industry
• Dynamic Industry
• Cut Throat Competition
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SLIDE 15
TODAY’S PRESENTATION
• Ford Motor Company
• The Automotive Industry
• Finance’s Role in the Auto Industry
• Finance Organizations / Positions
WWW.MYCAREER .FORD.COM
SLIDE 16
VISION OF FINANCE
Business
Leadership
and
Decision Support
Funding
Control
Process Excellence
And Discipline
WWW.MYCAREER .FORD.COM
High Performing
People and Teams
SLIDE 17
TODAY’S PRESENTATION
• Ford Motor Company
• The Automotive Industry
• Finance’s Role in the Auto Industry
• Finance Organizations / Positions
WWW.MYCAREER .FORD.COM
SLIDE 18
WHAT YOU CAN EXPECT FROM US
CHALLENGING ASSIGNMENTS IN THE
FOLLOWING ORGANIZATIONS
• Operations
– Manufacturing
• Traditional Staff Functions
– General Auditor’s Office
– Product Development
– Accounting
– Marketing, Sales, &
Service
– Corporate Finance
– Purchasing
– Ford Credit
WWW.MYCAREER .FORD.COM
– Treasury
– Internal Control
SLIDE 19
WHAT YOU CAN EXPECT FROM US
TYPICAL FINANCE ANALYST POSITIONS
Purchasing
• Commodity
• Material Cost Forecast
Product Development
• Product Cost
• Engineering Resources
• Vehicle Line Profits
Customer Service Division
• Parts and Service Pricing
• Warranty
• Parts Depot Sourcing
Manufacturing
• Plant Labor and
Overhead
• Investment
• Sourcing
Sales and Marketing
• Pricing
• Incentives
• Sales Analysis
• Production Scheduling
Corporate Staffs
• Foreign Exchange
• Accounting
• Staff Auditor
• Corporate Financial
Statement Consolidator
WWW.MYCAREER .FORD.COM
Ford Credit
• Credit / Residual Risk
• Operating Cost
• Securitization
SLIDE 20
WHAT YOU CAN EXPECT FROM US
SAMPLE FINANCE ASSIGNMENTS (4 YEARS)
ORGANIZATION
FUNCTION
LOCATION
ERIC WINSTON
2000
(1) Mat’l Planning & Logistics
Manufacturing – Admin Budget
Dearborn MI
2001
(1) Mat’l Planning & Logistics
Manufacturing – Consolidation
Dearborn MI
2002
(1) Mat’l Planning & Logistics
Manufacturing – Process Improvement
Dearborn MI
2003
(1) Program Finance
Product Development
Dearborn MI
4
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SLIDE 21
WHAT YOU CAN EXPECT FROM US
SAMPLE FINANCE ASSIGNMENTS (10+ YEARS)
ORGANIZATION
FUNCTION
LOCATION
PAT KEEGAN
1988
(1) Transmission Ops.
Manufacturing
Livonia Transmission Plant
1989
(3) Transmission Ops.
Manufacturing
Livonia MI
1992
(1) Transmission Ops.
Manufacturing -- "Planning"
Livonia MI
1993
(1) Engine Ops.
Manufacturing
Dearborn MI/Chihuahua MEX.
1994
(1) International Automotive
Corporate Staff
Dearborn MI/Johannesburg SA
1995
(1) Vehicle Operations
Manufacturing
Dearborn MI
1997
(2) Vehicle Operations
Manufacturing -- "Planning"
Dearborn MI
1999
(2) Mazda Motor Corporation
Product Development
Hiroshima Japan
2002
(2) Program Finance
Product Development
Dearborn MI
14
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SLIDE 22
WHAT ARE THE CAREER OPPORTUNITIES IN FINANCE
WHAT ARE THE CAREER OPPORTUNITIES IN FINANCE?
Career Opportunities = Experiences
“…It gives one person, if they want it, the
opportunity to experience three to four careers
in a lifetime…”
Philip R. Martens
Group VP Product Creation
Ford Motor Company
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SLIDE 23