Ford Motor Co. (NYSE:F) Q3 2019 Earnings Conference Call - Final Transcript

Oct 23, 2019 • 05:30 pm ET

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Ford Motor Co. (NYSE:F) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Analyst
John Murphy

a little bit more for Joe, but Jim, I'd obviously love to hear your view on this. There was a lot of concern around the Explorer launch, and it sounds like there was a lot of problems there, but it seems like you've got your arms around it and are ramping up pretty well. Just curious, was that story overplayed in the press, and we all got a little bit too concerned about that? Are there any lessons that you've learned for product launches? Because obviously, you have a ton coming down the pipe in the next 12 months from that process that you can apply going forward, to kind of make sure we don't have this kind of kerfluffle or issues going forward.

Executive
James P. Hackett

Yeah, I think I should -- John, it's Jim Hackett. I think I should confirm, that we have higher expectations for our performance, and its my experience, the short time that I've been here, that Ford is really good at this. Joe can add some color here, but the challenge, what I call the design problem, is that we had to ramp down a really profitable vehicle. We had to clear out the plant, literally bulldoze everything out, build a new plant inside, get it started and not drop any volume in the midst of that. So, it was pretty aggressive and as I look at that, I want a win like that in the future, but we fell short in a few ways. In fact, Joe just took my whole team through a deep dive on what we've learned from that. I was very impressed with the granularity of what we do understand, of how the things that should have gone better didn't.

But what I am not concerned about is whether we get it and whether we have a grasp of how to get control of it. I'll let Joe share with you, because of course we are getting daily updates, the latest status of where we are on Explorer.

Executive
Joseph R. Hinrichs

Yeah, thanks, Jim. Thanks, John. So a really important launch for us, clearly. Just to step back for a second, so far this year we launched the Ranger all new in North America, a very successful launch. Very unusual that it wins its segment in IQS in the first year of introduction. We just launched Escape and Corsair down at Louisville, that launch has gone very well. We're ahead of plan, actually, on that launch. So the Explorer Aviator launch is a very unique situation. As Jim said, we're disappointed in our overall performance in the ramp up of the volume. The products themselves are wonderful, the Aviator is a fabulous product. About half the sales of Explorer so far are FT and Platinum, and if you haven't driven an FT, I really challenge you to do so. It's a lot of fun and

Executive
James P. Hackett

They won't give it back.

Executive
Joseph R. Hinrichs

Yeah, you're right. But back to the launch, so Chicago is our oldest plant. It