Ford to cut costs, plans to reduce global platforms to 9 image

Ford Motor Co. plans to reduce its number of global platforms to 9 from 11, by the end of 2013, Jim Farley head of global sales and marketing said on Wednesday at the Automotive News World Congress conference in Detroit.

That’s a year earlier than its original plan. It’s also a major change from five years ago, when just 29 percent of Ford’s volume was built on shared platforms.

“Ford is accelerating its plan,” Farley said of efforts to make more vehicles from fewer platforms, a strategy that reduces costs through the need for less engineering by being able to use development work for vehicles that can be sold all over the world.

Farley failed to identified which platforms are destined for the chopping block, but added “there will not be fewer products.”

“This is a commercial decision to accelerate the complexity reduction of our lineup. One Ford is accelerating.
The plan is dynamic and the Ford team has seen the value in simplifying, and because of that Derrick (Kuzak) and his team and the purchasing and manufacturing team have committed to accelerating that process.”