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Speech:
William Clay Ford, Jr.
Annual Meeting of Ford Shareholders
May 13, 1999
 
"... Ford is much more than just a job for me, and it is more than just an employer.
It's my heritage, my children’s future, and my way of life.
To me, the company and its employees truly are an extended family..."
-- William Clay Ford, Jr., Chairman, Ford Motor Company


William Clay "Bill" Ford, Jr.
Chairman of Ford Motor Company, the first Ford to preside over the shareholder's meeting since Henry Ford II.

 

Bill Ford affectionately embraces Jacques Nasser, President and CEO of Ford Motor Company. Nasser and Ford drove to today's meeting in the TH!NK -- a zero emissions automobile.
 

 

The following are remarks, as prepared for delivery, by William Clay Ford, Jr., Chairman of the Board of Directors, Ford Motor Company, before the annual meeting of shareholders in the Detroit Opera House on May 13, 1999.

This is a special day for the company, and for me personally. It’s been nine years since we’ve held our annual meeting in the City of Detroit. And it’s been twenty years since my uncle, Henry Ford II, presided over this meeting. I am honored to be here.

I can’t think of a better place to start writing the next chapter in Ford’s history than right here in Detroit. This is a city that is reinventing and revitalizing itself, much like our company. The Detroit Opera House where we are meeting today is just one example of the rebirth of Detroit.

Like many other Detroit success stories, the Opera House is supported by Ford Motor Company. You heard the Michigan Opera Theatre Orchestra playing prior to the meeting, so you know why we’re so proud to be associated with this institution.

Beyond the facts and figures that we discuss today, we hope that this meeting will give you a sense of what your company will be like as we move forward. It will be familiar, but different.

We’re going to discuss serious business this morning, and address important issues. But we also want to have some fun – automobiles are a fun business. That’s why Jac Nasser and I drove out in the TH!NK. It’s a lightweight, plastic-bodied, zero-emissions, electric-powered car. TH!NK addresses a lot of serious environmental concerns. But it’s also a lot of fun. It is emblematic of the new direction Ford is taking.

We’re going to honor our past. That’s one of the reasons we’re holding our last annual meeting of this century in the city where we started in 1903 – Detroit.

But, at the same time, we’re looking to the future. For the first time, we’re broadcasting our annual meeting live on the world wide web. Our shareholders have been able to vote their shares and ask questions of the company over the Internet for the last couple of years. Today, we’re taking it one step further. I want to welcome all those shareholders who are viewing this meeting live on the web.

I think it’s very fitting that we’re adding virtual reality in the city where Ford became an actual reality 96 years ago. That combination of rich historical heritage and leading edge technology is one of the things that separates Ford from other companies.

I’m very pleased that we have almost the entire Ford family with us today. That’s a tremendous show of support.

I want to thank all my family members for being here, and for their encouragement and support.

Close family involvement in the business is another thing that separates Ford from other companies. And, if you look at our results, it’s clear that the family association has much more than just sentimental value. Since the company went public in 1956, our average annual return to shareholders has been significantly higher than the major market averages. The stability of the Class B shareholding also keeps raiders at bay, and allows us to manage for long-term success.

As of the end of last year, Ford’s average annual return since our Initial Public Offering 42 years ago was nearly 14 percent, compared to 12 percent for the Standard & Poors 500, and 11 percent for the Dow Jones Industrial Average.

That’s a record we want to uphold and improve upon. Shareholder returns will continue to drive all our future decisions.

Before we get into the business of the meeting, and hear the Operating Report from Jac Nasser, I would like to take a few minutes to outline my vision of Ford Motor Company in the 21st century.

No company has had a greater impact on the lives of people around the world in the 20th century than Ford Motor Company.

Henry Ford, put the world on wheels with the moving assembly line, and the first affordable car for the masses, the Model T. He also made the world a better place for the average person, with $5 a day wages when the prevailing wage was $2, and pioneered efforts to preserve the environment and our cultural heritage.

Our challenge today is to build on that incredible heritage, and to have the same positive impact on the 21st century that we had on the 20th century. It’s a challenge the entire Ford team is eager to undertake.

We are leaving behind the industrial age, and entering the information age – the age of the consumer. Our vision is to be the world’s leading consumer company that provides automotive goods and services. We want to find ingenious new ways to delight consumers, provide superior returns to shareholders, and make the world a better place for us all.

That last point is very important to me, and to all of us at Ford. I believe the distinction between a good company and a great one is this: A good company delivers excellent products and services, a great company does all that and strives to make the world a better place.

What does social responsibility have to do with shareholder value? A lot today, and even more tomorrow.

The company recently completed an intensive worldwide market research project aimed at helping us better connect with consumers in the 21st century. We asked people in North America, South America, Europe, and Asia what they look for when they make a purchase – not just of automobiles, but of any kind of product.

In every market we tested around the world, people strongly and universally were demanding corporate responsibility – especially young people. They told us they want to do business with a company that truly cared about them, and about the larger community.

We have a long history of corporate citizenship, going back to Henry Ford. Today we are helping to build schools in Mexico, set up health care facilities in India, present great works of art from China, run engineering workshops for students in Great Britain, assist flood victims in Poland, protect biodiversity in the tropics, and bring great music here to southeastern Michigan.

But we know that our social obligation is much bigger than just supporting worthy causes. The responsibility to consumers – and to society – of a company our size is defined in very broad terms. It includes anything that impacts people and the quality of their lives.

A favorite example of mine is the environment.

At the end of last year, we announced that we were the first and only automaker to certify all its plants around the world under ISO 14001, the international environmental management standard that regulates air, water, chemical handling, and recycling. Our plants around the world follow a uniform system audited by independent experts. Nobody else has done this. We are changing the definition of an industrial company.

At the same time it preserves the environment, ISO 14001 will save us hundreds of millions of dollars in energy, water, and material costs over the next five years.

Three weeks ago we announced a partnership with the State of California which also includes several oil companies, Ballard Power Systems, and DaimlerChrysler to put a test fleet of fuel-cell powered cars on the road there in 2001. I believe fuel cells will be a significant part of our industry in the not-too-distant future. We plan to have production versions of these zero-emission vehicles for sale in 2004.

As with ISO 14001, I see fuels cells as being socially responsible and a potentially huge competitive advantage. That’s a powerful combination.

Last week I announced company plans to begin a complete environmental and aesthetic revitalization of the Rouge manufacturing complex. This will include a full environmental assessment of the site, and a subsequent clean-up plan; removal of buildings and equipment that are no longer in use and refurbishing of those that are; restoration of the waterfront areas; new landscaping and additional green space.

We’ll be working with the leading advocate of "eco-effective" design. This is a terrific opportunity to transform the icon of 20th century industrial manufacturing into the model of 21st century sustainable, environmentally friendly manufacturing. As we’ve already seen with ISO 14001, reducing waste and increasing efficiency benefits consumers, the community, and shareholders.

It’s a socially responsible competitive advantage. That’s how we plan to honor and build on our past, and at the same time drive for leadership in the future.

Of course, I can’t talk about the Rouge Complex without acknowledging the tragedy that occurred there recently. Our thoughts and prayers continue to be with the employees and families involved. Their strength and courage, along with the outpouring of support from the community, were a source of inspiration to us all in a very difficult time. I want to thank everyone who helped out, or sent words of encouragement.

The safety and well-being of our employees, whom we view as members of the extended Ford family, has been and always will be of paramount importance to us. We will move forward in honor of these family members.

I'd like to conclude my remarks by talking about our employees, who are the extended Ford family, because they are absolutely the most valuable asset that we, as shareholders, have.

Obviously, with my background, I feel a great sense of ownership and responsibility for the company.

This is my first year as chairman, but I've worked for the company for 20 years, and served on the Board of Directors for 10 years. And I literally grew up with the company, with the Ford Motor Company a part of my life for all of my 42 years.

Ford is much more than just a job for me, and it is more than just an employer. It's my heritage, my children’s future, and my way of life. To me, the company and its employees truly are an extended family.

With all the talk these days about establishing corporate brands, I think it's an advantage not to be just another large, faceless corporation. Employees tell me that the heritage and sense of history that we have in our company give them a sense of connection, and a sense of pride.

Right now, the company has a solid balance sheet, outstanding products, and we're way ahead on the transformation curve. We’ve reduced our total costs, and our capital spending as a percentage of revenue; we had record year-end cash totals, and we have record earnings.

As strong as we are, I get a sense as I talk to people around the company that they're convinced we're just getting started. The first five months of this year have been a whirlwind of activity. We have made some major acquisitions, and reorganized a significant portion of our business.

Our employees are energized by the bold moves, and they want to continue to put the pedal to the metal.

The driver of this change, the man pushing the accelerator, is Jac Nasser, our President and Chief Executive Officer. Jac is a dynamic leader, and a visionary thinker and teacher. He's put together a strong leadership team, and an aligned and highly motivated workforce.

Jac and I have distinct roles to play. But even though we have separate roles, we share a common vision of success. We have a true partnership. One that is unique -- one in which the sum will be greater than the parts. And our common interest is shareholder value, and unlocking the potential we think is there.

Jac and I have a lot of energy, drive, and enthusiasm. We have fresh thinking and creative ideas. We also have the advantage of being able to take the long view, and build lasting value. And we have a great team, an extended Ford family, eager to make our next 100 years even more successful than the last 100.

It's not going to be easy. We're in a fiercely competitive, buyer-driven global business. We have a lot of work to do.

But Ford Motor Company has a compelling vision of the future, strong leadership, and dedicated, involved employees. We have a long history of providing great value to consumers, shareholders, and society, and strong momentum. I’m confident we can keep it going, and take it to a whole new level.

We can do well for employees, customers, and shareholders. We can do good for society. And we can be great.


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