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Ford CEO Mulally: ‘We’re not going to back off’ on tech-push
Automatically Generated Transcript (may not be 100% accurate)
Hi again welcome to the latest installment of our talk from the top series. I'm Jason Stein editor Automotive News. So this time around we're speaking with CEOs at global auto makers and we're gonna begin today with Ford's Alan Mulally. Since arriving at 2006 Mulally has been credited with completely overhauling the blue ovals culture products and business. And most analysts would argue all for the better. In recent years the focus on the -- eventual departure and a succession plan were hot topics among industry analysts and reporters. But all that speculation was laid to rest November 1 when Ford announced Mulally would stay on through at least the end of 2014. Four days later I sat down with Wally at Ford's Dearborn headquarters. The 67 year old continues to wrestle with challenges that seemingly won't go away. Making Lincoln relevant again and improving the auto makers controversial. Infotainment system. The technology that goes with forged in a reasonable life worked but that high tech gear namely the Mike Ford and Miley can touch control systems. Played a significant role in how the brands spared in the most recent consumer reports annual reliability study. Lincoln finished 26. And fort when he seventh only one spot above last place jaguar. The magazine calls the tellem -- system quote problematic. So far. Mulally says despite all that we're not back off. He says Ford is constantly improving a system which is designed in large part to help decrease driver distraction. What what you've done differently if you were -- I'm not so sure that we -- we would have done anything significantly different. Except for maybe. A little bit more focus on the -- of the initial capability just give you one example about that on on my Ford touch. We need to cut some customers like flat panels as benefits someone like consumer electronics five positions exposition controllers. Some of them like voice commands and at the time when we started we only had like 100 -- Well today we have 101000 voice commands so and hindsight we probably would focus more. On the on the voice activation may be a little bit less in the touch screen. And then brought that technology along a little slower. One part of the business were Mulally is not slowing down is Lincoln. US sales are off 15% this year but Mulally says he's found the right man to reinvent the brand. He really understands luxury he really believes. -- in Lincoln. Well Ali talking of course about Ford's veteran marketing sales and service boss Jim Farley who is now Lincoln's worldwide leader. -- by the way is no stranger to the luxury segment. GM has such a unique experience because he's clearly helped develop. The Toyota upper hand in their products. And then he also led the development. Of the Lexus premium. Worldwide. In recent months Farley has been a prime architect. Behind Lincoln's plan to offer a new style of customer care similar to what you find at luxury hotels Mulally says the vehicle is one part. That that election customer expects and wants and really appreciates. A more personal long term relationship. And so our dealers. Are right size now they're excited about to invest in their facilities. In their people and their teams and they years are gonna provide a very very satisfying how long term relationship to Lincoln customers. And speaking of a strong bond Mulally says he has one -- is new and first chief operating officer at Ford. Mark fields. Feels that the auto -- long time president of the Americas will now lead the company's. Day to day operations including a key weekly meeting previously run -- and -- where all of Ford's global business unit leaders come together by teleconference. Molly however says he'll still be in the room. Mark is going to them lead our business plan reviews on Thursday and I'm going to be dynamite helped sitting right next that to him. While -- focus even more on the for the development of our strategic plan. By the way we've -- appointed to -- well many believe fields is the clear top candidate to replace -- Monday. For more on this talk from the top please read the November 12 print edition of Automotive News of course you can find it online at -- news.com. Coming next week we hear from Renault Nissan CEO Carlos gone. Thanks for watching everyone we'll see you soon.
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Volvo Store’s Personalized Videos Connect With CustomersOur best practices series continues. Tom back. It is estimated that 90%. Of car buyers do some shopping on the Internet. In the merit study shows more than one in ten shoppers actually skipped the test drive before purchasing a vehicle. That's because those folks are satisfied with their online search. In an effort to put a face on the cyberspace shopping experience. Many employees at procedure imports of global story New Jersey. Our armed with quarters or Smartphones with cameras in just about any device with a lands. Thirty year old dealer principal Matthew there's been running the family stores since 2005. In the explains what happens next. So if if someone inquires about it a vehicle we have and stock they're gonna get a personalized video. From one of our team members like Internet sales consultant. You know below it. Good morning James my name is Tina and it works here at prestige Al east Hanover locate and spends much of her day in front of this camera on her computer monitor. She highlights vehicle suspects in financing options the potential buyers. After a quick check of the recording. My and I she tackles the email subject line. Right here we just put the cart and he and hard about the senate and then tomorrow we send him an. Email follow up saying he got the video message however below here and this is feedback. Comes fast but you can actually see that watching the video and they respond to you instantly. They have never had experience like that anywhere else and it's so personalized for them. But the videos don't stop there particularly when it comes to used car sales. The store's business development manager castor serves as both reporter. And photographer. And outside here at the carping I'm gonna do video walk around the car. And they show you up all the features on the car casters is sending a shopper occur and to detailed video clip which is also uploaded to YouTube. Helps him avoid common pitfalls later in the sale. The customer comes on the lot to see used car and sit there ago. Oh look there's a take a hundred dollars off oh look there's a scratch take 200 dollars off I get all that right out of the way up right. By showing off all the physical defects long before they get a lot that immediately takes that sort of objection out of the equation. Even buyers contribute to the video effort through testimonials. On the store's website. Bottom line video is boosting online sales. The stores Internet department now generates 50%. Of the dealership business up from 30% just two years ago. Taken adds the customized videos aren't staged to manipulate it says the raw footage goes a long way with customers. This way that mystery that that. That negativity about the cart experience and and it upside down. And shows the people. Doing their homework the that were real people and if you are going to make a decision. Work with us we're real we wanna help you and you know it kind of brings transparency. To the table speaking of which. If someone gets an email and they happen to be off or on vacation. That email is transparent to all the managers can jump right in. See where that agent left thought that the customer and you know start their line of communication. Taken insists he's not trying to play Big Brother instead he monitors employee communications. To more effectively manage his customer database. Many of those people live about an hour's drive to the east in New York City. Taken knows his clients that are most points in between are busy. So he's built a team of shuttle drivers who drop off the motor cars with customers and bring their vehicles in the first service. Joseph Cano is a client care specialist. Without deliver far activism that we pick up this morning and school has very limited availability to get out and we provide that service for the. We have customers that have never. Actually physically visited our dealership and that's just fine with Hagan who doesn't believe that heavy up sell in the service late. Instead he wants to build relationships. Some might say we're crazy we might drive an hour. The card and just for no change but it's not about that changed it's about what's gonna happen over the lifetime that customers' vehicles about. What they're gonna tell their friends and family members when it's time for them to make a purchase decision of an automobile. Among Pickens top priorities. Getting more young people involved in the car business. That's happening right here in the service department. Under the guidance of master technicians. Kevin is working alongside shop Foreman Andrew As an engineer I'm planning a certain collection towards me college this experience really give me some valuable experience. As you. How the defense systems in the car answer back to what true. The future the seventeen year old efforts to bring a smile to the face of hate him. He started working in the store seventeen years ago at age thirteen as dean Taylor. At sixteen he was in an NA VH one group. Dealer academy followed college. He can then proceeded to work at every corner of the dealership before becoming general manager about eight years ago. His father in business partner Leonard founded the store in 1979. He tried to convince Matthew to become a doctor or a lawyer but it was too late. I told him you know I have got to do this I love this. Prestige is on track to sell a combined 1000. New and used vehicles this year. In since Matthew is taken over. Prestige one those presidents club award twice. It is given to stores based on sales volume. And customer satisfaction. Think so much for watching we'll see you soon.
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Chrysler's Saad Chehab on Marketing and MinivansWe've been on a roll so far been lucky with a great progress last year we we actually sold a year over here an additional 100000 units over 2011 so we're very proud of so we're keeping the momentum going and part of that progress has been this. And have a unique marketing approach that we've done that wasn't necessarily it's a bigger budget bargaining new cars look more substantial. Applications that we've introduced to the customers that really work for their own lifestyles and their own tastes. for example we just introduced to him both on addition 300. John good minerals limited edition to 2000 units that's called the classic the future. And now or to a special less special card today for 200. We're looking to make sure that we have an appropriate people over for either the France. We will definitely have a minivan one of the two brands or or or country started this this segment right continue to be part of it. But one of the two grants cannot cannot have the same people again in the same so we have to. A role play if you like in the to have a different type of a people mover for one of the brands and the other continues with the minivan. Every grand love to have everything in March obviously especially if you're on a roll. As we've been so far. From from three years ago as the price of brand. But the reality is that we have to make sure that whatever game he made in the segments that we are existing in today that we protect that. Progress that we made and bring new cars bring. New technology is always be up to date and relevant in the marketplace with those three vehicles which are very important to us there our bread and is. And then after that we can think about what's what what other icing on the ticket prices of brand can contribute the total group because we are coexistence. Type of a brand with in the Floor that we have to be cognizant. Complementing each other and not be on top of each other so. What role will continue we are looking at that time diversifying and and adding. But at the same time we have to make sure that we bring new car is great wonderful vehicles that. Still play that their role in the marketplace that we existence today.
