The distribution system for moving new cars to market is about to undergo a major change, predicted keynote speaker Ed Hagenlocker, president of Ford Automotive Operations. We don't know if the Internet or new alliances of dealers will make the change, but we do know that customers will define it. If customers show a high satisfaction with new systems over our traditional one, we will adapt. It is an effort that will involve some 2,000 manufacturing processes. Hagenlocker said a pilot project has been operating in England and the company is now ready to launch the process from a U.S. plant on one or two product lines.
Customers now buy a high percentage of new cars from existing dealer stocks.
New manufacturing techniques are also allowing Ford suppliers to ship the exact parts needed on the plant floor. In Germany, our Saarlouis assembly plant piloted the system, which is now in place at five other Ford assembly plants. Removing hierarchical barriers Running a major manufacturing plant in Mexico is not as simple as translating machine operator manuals into Spanish, discovered speaker Steve Knaebel, MBA '69, president and general manager of Cummins Engine Company's Mexican subsidiary. Mexico's education system trains many workers to learn by rote rather than by asking questions. Disagreeing with orders from above is unusual, and the idea of sharing most information with underlings is anathema to managers.