Thus did Ford become what it is today: a balkanized mess. It has four parallel operating units…

Thus did
Ford become what it is today: a balkanized mess. It has four parallel operating
units worldwide, each with its own costly bureaucracy, factories, and product
development staff. According to a Mulally audit designed to uncover costcutting
opportunities, no two vehicles in Ford’s lineup share the same mirrors,
headlamps, or even such mundane pieces as the springs and hinges for the hood.
And that’s just taking into account the Ford brand. Add Volvo, Jaguar, and Land
Rover to the mix, and the company has more than 30 engineering platforms worldwide.
That leaves Ford at a big cost
»

Thus did
Ford become what it is today: a balkanized mess. It has four parallel operating
units worldwide, each with its own costly bureaucracy, factories, and product
development staff. According to a Mulally audit designed to uncover costcutting
opportunities, no two vehicles in Ford’s lineup share the same mirrors,
headlamps, or even such mundane pieces as the springs and hinges for the hood.
And that’s just taking into account the Ford brand. Add Volvo, Jaguar, and Land
Rover to the mix, and the company has more than 30 engineering platforms worldwide.
That leaves Ford at a big cost disadvantage in engineering and parts compared
with General Motors, Chrysler, Toyota, and Honda. Mulally wants to get that
number down to five or six platforms, similar to Honda. “There’s no global
company I know of that can succeed with the level of complexity we have at
Ford,” he says.

»

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