Anne Stevens, Executive Vice President and Chief Operating Officer, the Americas, Ford Motor Company
Governor Ernie Fletcher

(David and others may particularly appreciate Gov. Fletcher’s intro of metrics into government).


Anne Stevens: late:

“The buck stops here:”

As exec resp, :|

We have tied exec compensation to performance across US

Padilla has resigned, forming 5 person committee, I am on it, only woman on it–
so I understand women, women going it alone

Apoolo 13: during enrire program, only 1 woman in program, balazed the way

women like Joanne inspire me…
during my tenure, there will be more women in launch control

At ford, determined to change mindsert that goes with the talk and the walk on quality

NO LONGER: OK to ship, but OK to BUY: at every point, employee needs to thnk that system is OK for our customers to run

SUSTAINABILITY: creating sustainable business structure which quality is a part of is a part of the culture at F
situatioin that we are in is very serious
all of us must work together to innovate, put on features, reduce our product time to marketplace
in auto industry today, you’d better be quick, or you’re dead
NO PATIENCE FOR THOSE WHO ARE SLOW TO CHANGE in industry

intent: transition to a sustainability model
caring about returns and the financial health of both our supplier and FMC
fostering co-operation and not conflict
take tension posturing and games out of mix, so we can focus on gains, together
optimize integration and supply chain

WE ARE EVOLVING in our relns w/ supply base

agreements… mean reduction in # of T1 suppliers… and going forward, we will need T1s to have financial strenght, ability to delivery quality, on time

T2 changes: more internat suppliers than in past, working to make sure that all meet basic working conditions that we adopted in ’04; will focus first on those who deliver on quality

encourage all suppliers (systems components service) to come to us with new ideas… ideas will be treated with respect they deserve, and I understand the issues of the past!

Our industry may be 100 yrs old, and about moving people from A to B, but the way we get them there will change. We must eliminate our dependence on oil, and strive to eliminate the negative impact of our product on the planet. We’re following Bill Fords vision to provide safe, clean, sustainable transportation…

I invite you who see the same vision to work with us as partners, as we change our relns and how we work together.

Detroit in the past known as a gritty town, where people not afraid to roll up sleeves and get to work. Plenty of steady nerve, quick thinking and raw ability.

Let’s roll up our sleeves, let’s work together, bec dom industry has positive vision for future in US of A, think will be an exilerating and fun ride.

Thanks.

ADVICE to YOUTH: choose passion, what you love to do– then it’s not work. I love cars… then see what your values system is, and when you pick an organization, see what the values of the organization is, …, worse thing is being in organiz that does not share values.

Q: what is future of supplier div initiative:

Anne: when I talked about code, in that code is a committment to diversity, and to the standards of employment. We continue to support development of the diverse supply network. Our committment has not changed, and if anything, we need to accelerate the commitment to diversity for all of us.

———

INTRO: Gov. Fletcher: engineer fighter pilot med doctor congressman &now governor of KY:
all leadership roles we need to play in a sucessfull business.

E Fletcher: Anne, thanks, Ford MC’s partnership is critical to Commonwealth
after protracted illness, it’s good to be anywhere

welcome to the Commonwealth, stick around for 2 weeks and you can see the run for the roses, some of the best 2 minutes in all sports

In commonwealth, we face some legacy costs that are really incredible:
cf. steel industry

same in government: CFO KY tabulated up that we have 13BN in retirement obligations– impacts our future, ability to support business

believe we have been outstanding in advanced manufacturing, Ford plant is among most productive in NA [but: it’s new tech!], believe that is about workers

my goal for business is that I want to make you as profitable as possible– w/out profit, you will not be able to expand or exist

2003 UMich study: KY has 3rd highest auto employment
we have great location for logistics: 60% of pop w/in 1 day, and that is 60% of wealth [wrong!]
KY= 4th lowest cost of doing business in US [really? what kind of business]
lowest energy industy rates: 2nd lowest
2nd lowest in residential as well

steps to help KY business and make KY more econ healthy overall:
promise to lower corp rate to 6%, alt. minimum tax adjustments
initiatives: find that many plants loc. in employee choice/ right to work states: did not expect to pass this session, but hope in next
recent 2 plants have gone to RTW states, per capita income in those states has gone up 9% in those states compared to others

also: health care for small businesses, “iCare plan”
continued committment to education
expanding broadband, 30% in last year, 2007 goal= reaches all CommonWealth
made gov. smaller, supposed to have 1BN shortfall in first 18 months, had 300M surplus

using tech and optimization to lower costs. . we and other states have to do that, have to operate government much more efficiently than we’ve ever done it, just as in business use tech to reduce op costs, we’ve invested significantly

200M is enormous reductioin in op costs, need to make reductioin in personell, doing that through attrition..

Beginning to manufacture hybrid here, have environ responsibility tax credit, will give you credit for dev here
also have alt fuel incentives
working with unis

site selection ranked KY 4th… etc…

Bluegrass Schools and wins… here to partner with you in educating your workforce in what you need.

Thanks for coming, whereever country you’re from, hope you will enjoy your stay, thanks for being here, we look forward to partnering with you.

Esp you @ Ford, know you had to make some hard decisions, glad that your plant is among most productive, like to work with you to maintain that.

Q: with the multiple skills sets you’ve developed over years, what advise to our young folk?

Ernie: genius= 80% perspiration, we’re in situation where media scruting is everywhere: for goverment, I look at ROI, very easy to look at short term returns, but I encourage you to look at long-term returns, …

Q: Kevin Shurn, Superior Maintenance:
how has continuous improvement processes helped you and government
A; As I looked at Toyota, what I saw was that one thing you don’t have in govt is metrics– how long does it take to get permit done? What is productivity…? Just now looking at…
had huge pay dispairities, entry level way below poverty, … created 55% turnover, we were training people and they moved on to other companies.. we eliminated lower two levels and lowered upper salary levels
I’m still looking at you people who run your businesses well for examples…

Q: KY’s position re: incentives for relocation and expansion
A: We’re for it. Come see me. (Various incentive packages: building, training, relocation)
We have many deals on table I think because we’ve sent out message that we’re open for business and we’re friendly to business.

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