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-- serving our nation.
Let's get to Ford Ford unveiled the future of Ford pickup trucks today.
At the Detroit auto show earlier I spoke exclusively in the wake of this to Ford's CEO and president Alan Mulally.
And began asking him what its favorite feature of this new Ford Apple's concept truck really is look at that.
I think the neatest thing -- that we're communicating with the -- -- concept.
Is that what we're gonna do on further improving the capability.
But also the fuel efficiency and the safety features.
But even probably even more -- partly is being -- -- connected to the Internet.
And GPS so that everybody everybody can use this for for all the construction work that this this forward.
F series is really known for.
53% of the F series trucks that were ordered in the past year.
We're V sixes clearly that's what the customer wants they want to save on gas but they still want that power so will you be able to deliver that list.
Absolutely we sure well into your point -- that's exactly.
The essence of the truck is because with the eco boost engine would direct fuel injection and Turbo charging.
We are now moving from -- still be six's.
Even further down and so you get all of that torque at the lower rpm which is great for the capability.
But you get 30% improvement in fuel efficiency goes with that too and lower CO2.
This sure looks and smells like the vehicle that is made for a contractor.
Then not leads to the question you must believe the contractors are doing better in the in the construction industry at this point.
That the economy might be coming back that they have enough money to either traded their old F series or buy a brand new one flat out.
Could you say from where you stand at the auto industry can be married in a way with the housing industry and it looks a little bit more stable.
Everything that we can see right now we see that gradual expansion along with that.
Comes the industry our market share of the full size pickup is up to nearly 40%.
And so there's a very important product for our consumers very important part but for economic development in the construction industry so where.
We believe -- gonna hit the market at the right time with this increase in fuel efficiency and capability with the F serious and.
Last year he sold about 645000.
Of these trucks of the eight the F series trucks 2005 the peak was about 2.5 million.
Can you get back to 2.5 million at some point Alan.
I think it'll be awhile before we get there -- we look at this kind of the inherent demand and especially.
The fact that the average age of vehicles is over eleven years old as you know.
But there's a lot of room to replace those older vehicles and today with improvement fuel efficiency and quality and reliability.
We can economically obsolete and older vehicle with these new vehicles so I think is a lot of pent up demand we see that we see -- the market.
Expanding with the economic development but the most important thing is that we need to expand the economy and -- much faster rate than a two and a half and get back to the rate.
The could actually bring down unemployment and get our economy growing again which as you know up in the 44 and a half percent expansion rate.
That said in -- -- -- That and then now you guys certainly look like you're growing so much so that you said that you were going to hire about 2200.
White collar salary employees.
I obviously think that that's that's great certainly hiring here in America but Alan.
You know I then I started to think it.
It does that mean that Ford is fattening up to the levels of those sort of pre Mulally years where Ford gotten to some trouble at all the other auto makers.
You don't want to risk getting so big again that you have to cut jobs correct so how do you straddle that line.
No it had.
And that's a lesson learned that you know actually -- -- the fundamental transformation -- Ford was a size our production.
-- capability to the real demand so we have been very careful to keep -- breakevens slow.
And absolutely used completely our assets and so.
This hiring him is to allow us to go up and production and launch the new big because of people really do you want but we're going to be laser focus on that going forward to your point.
They're still -- on the books obviously you've worked very hard to bring that down to improve.
Credit rating afford so what are you doing now as you look at what is still a sizable chunk of debt.
We started out -- nearly 3536.
Billion dollars in debt and we have reduce that debt.
Now to fourteen billion -- -- our mid decade guidance had a target of around ten billion dollars which is about right for our capital structure.
So -- -- doing very well on on moving forward with our capital structure we have been able to.
Reinstate the dividend rice announced we're gonna double the dividend.
Going forward and our strategy is maintain that dividend.
Through this cycle how about building plants in the US right now our assets -- really pretty good shape because when we.
Restructure ourselves over the last six years.
We also thought ahead about where the industry would go as economy came back -- And so what we're doing now is really -- second and third shifts and we think we have that capacity just about right for now.
The US government have you worked well with them on what's the tone as we continue now as we see four more years with President Obama.
Obviously the Treasury Secretary is moving on at some point but.
You know how is that relationship with Ford one of our -- manufacturers in this country.
Well as you know -- I've been pleased support the economic council also the export council.
And I really been pleased to be part of that solution to talk about the importance of work together on solutions that -- Foster economic development in the United States.
And I know I know that the administration congress know the value of America faction the United States the work that we did on the free trade agreement with South Korea was was fantastic.
Because this is all back create an environment where businesses can grow.
Especially led by manufacturing and we're gonna be exporting the explorer.
From Chicago because of what we've done to improve our competitors in United States to 94 countries around the world.
There's no reason we can't do this in the United States if we have a laser focus on creating an environment where businesses can grow.
You know wolf that's good news and and as you look over your right shoulder that sparkly grill idea that that that atlases Israelis -- -- I was look at concept caucus though.
-- is sort of a unicorn that you see them once set auto shows and then they never really materialized on dealership floors will we see.
That car behind you that truck in some form at dealerships in the future.
Yes and to your point -- the -- -- over the last six years as we on every concept car that we have had.
We really want to communicate where that design where that capability.
It was going and where we are taking it so they're concept cars that they would have a clear indication we're gonna be improving the vehicle.
When your point it looks built Ford tough I -- -- that thing that -- Monster it's -- -- tough indeed.
Alan Mulally thank you very much for joining us we appreciate it.
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