Nick Scheele: Three New Lincolns In Three Years

CHICAGO May 9, 2003; Eric Ahlberg writing for Dow Jones reported that a Ford Motor Co. executive on Friday affirmed the company's earnings guidance for the second quarter and the year and said the automaker is on the threshold of its largest new-product surge in decades.

Nick Scheele, Ford's chief operating officer, told journalists during a luncheon presentation in Chicago that the nation's second-largest car maker expects to earn 10 cents a share for the second quarter and 70 cents a share for the year.

Analysts polled by tracking firm Thomson First Call expect the company to post earnings of 14 cents a share for the second quarter and 69 cents a share for the year.

Scheele said that all players in the auto industry are engaged in a "fiercely competitive global dogfight." After a lull in new-product launches, Ford will introduce about 65 new models over the next five years, including three new Lincoln models over the next three years. Two of the new Lincolns will be in new market segments, he said.

Ford continues to make changes to its product development processes, which will result in quicker release times and more common parts, Scheele said. About 75% of the company's plants are expected to use flexible manufacturing systems by the end of the decade, he said.

Flexible manufacturing standardizes the assembly process, which improves productivity through reduced changeover time.

The company expects to have 45 new products in Europe and 35 new models within its Premier Automotive Group, which includes brands such as Jaguar, Scheele said.

Responding to questions, Scheele said that Ford has no plans to do any sort of stock buyback. Shares currently trade at about $10, after setting a 52-week low of $6.58 in March.

"We obviously believe that our stock is undervalued," he said. "We'll be judged by our shareholders in the same way that we are being judged by the car- buying public."

Scheele said Ford also has no plans to lengthen the warranties it offers on its vehicles in response to moves by some of the Korean automakers. He said the company's research has shown that customers get suspicious about quality when such large warranties are offered.

Scheele was in Chicago as part of a two-day corporate tour. On Thursday, he met with employees at the company's Torrence Avenue assembly plant and held a meeting with several hundred retirees.