Ford Revamps to Speed Introduction of Models

Ford Motor Co. said Wednesday that it would start developing vehicles in North America based on car size rather than consumer preference in an effort to speed introductions of new models.

The plan, which involves reassigning 14,000 employees who work on product development, is aimed at helping the company use the same parts for different vehicles to reduce costs.

Ford wants to cut the time it takes to develop new Ford, Lincoln and Mercury models by 25% from as long as 32 months, Vice President Phil Martens said.

Ford is converting factories so that it is easier to build more models at the same plant. The Dearborn, Mich.-based automaker wants to boost production of different models that use the same platform, which includes chassis and suspension systems.

Ford has said such flexible manufacturing would save it as much as $2 billion during the next 10 years. The company plans to use the system in 75% of its plants by 2010.

Auto development will be divided into four general categories: small cars; most medium and large vehicles; sport utility vehicles and some large rear-wheel-drive cars; and pickups and commercial trucks.

Operations had been organized around five marketing designations: Tough Truck, Outfitters, Family, Lifestyle and Lincoln-Mercury.

Ford has 18 vehicle platforms that will be cut to 12 by 2010, Martens said. Each of the four product groups will have an executive director.

Shares of Ford fell 11 cents Wednesday to $8.82 on the New York Stock Exchange.