LOOK WHO'S TALKING: Ford's Neil Ressler

Automotive Industries, May, 1999 by Marjorie Sorge

Becoming a more consumer-focused company is changing Ford's core business -- and its engineers' jobs. Ford's research chief explains how and why.

Ford has undergone dramatic changes in the last 18 months as it moves away from its global Ford 2000 efficiency improvement program and heads toward a new goal -- becoming a consumer-oriented company. With that comes a laserlike focus on creating shareholder value and satisfying the customer.

That means there are four drivers at Ford today, says Neil Ressler, vice president of research and vehicle technology.

* The consumer. "There must be a belief that the company really has their interest at heart."

* The "trustmark." That is "how we are defining the role Ford Motor Co. plays in the world... We want to do something that provides genuine value, that looks after the genuine interests of our products and services. "

* Corporate citizenship. "What does a corporation do to be a seen as a contributing citizen?"

* Productivity and efficiency. "Twenty years ago (former Ford Chairman) Red Poling said `the low-cost producer gets to make up the rules of the game,'" Ressler notes. "If you don't like playing by somebody else's rules, you'd better be sure you are the low-cost producer."

Q: How does being consumer-oriented change Ford's thinking?

A: We have a long way to go with this. You'll see Ford doing things to understand what people look for in a company. We are not going to do things that are not important to the consumer. Is it important that we make window lifts? To a manufacturing company that might be important, but a consumer company providing product must change its view of what is core to the business. Our definition of what is core will change.

Q: How does that change a Ford engineer's job?

A: One thing that overshadows every engineer's job is the rapidly changing technology. There was never a time in my memory that the statement "this business requires continual learning" was more true. The new hires are closest to the leading edge, and the leading edge is further away than it used to be. With each generation of employees we have different training demands. Today, you can get to the point where you have nothing to contribute -- nothing.

The texture and content of jobs will change. Instead of being a component, design and manufacturing company -- what Ford was for most of its existence -- we are going to be a systems-integration company. That requires different talents than component design, development and manufacturing. It doesn't happen overnight. In some ways it is happening so slowly, people don't recognize the change.

Q: How is the emphasis on shareholder value affecting the company?

A: It reminds us that this is a business enterprise, as opposed to a manufacturing company. The factors that drive shareholder value are the very factors that strengthen the company and make it grow.

That came as a big revelation to a lot of people who came here to adopt an institutional mindset: My grandfather worked here, my father worked here and my kids will work here. They believe Ford has always been here and always will be here. Guess what? That isn't necessarily true.

Q: Where is Ford headed in emissions and fuel economy?

A: The engine will have more efficient spark ignition and different schemes to achieve that.... twin spark plugs, variable displacement that will shut off some cylinders when you don't need them, maybe direct injection in small and light cars, maybe lean burn.

We'll see more CVT transmissions. We'll do better on aerodynamics and on what we call parasitic losses -- any loss that makes heat. That will occupy our attention for the next few years.

Q: How will automakers fund these technological breakthroughs?

A: That is driving some of these mergers. The technical demands of being a viable auto company in 10 or 20 years are huge. It is going to take companies with huge resources. We are not trying to do it all ourselves. Why do something if another company is already doing it? You will see more of these opportunistic levels of cooperation.