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Ford's R&D budget second biggest in the world

Ford's R&D budget second biggest in the world

Viknesh Vijayenthiran October 8th, 2007 Viknesh Vijayenthiran By Viknesh Vijayenthiran Author October 8th, 2007
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December 31st, 1969 Ford was founded on technological innovation. One of the first American carmakers to successfully employ assembly lines, it has since charted many industry firsts. Through its partnership with Cosworth, the company supplied the motors that powered 176 Formula 1 Grand Prix wins. The unparalleled dominance of the GT40 at LeMans in the 1960s - still the only American car ever to win the overall title at the famed endurance race - is still talked about in racing circles around the world. And who can forget the contributions the blue oval made to the World Rally Championship over the last 34 years? All of this success and innovation comes at a price - a very large research and development budget. Although Toyota holds top spot in global auto sales, the highest automotive R&D budget honors go to Ford, which comes in second in the world - of all companies in any industry - only to Pfizer, the pharmaceutical mega-corporation. Checking in around US$8 billion annually, Ford's research budget surpasses that of both Johnson & Johnson and Microsoft, who round out the top four spots. The newly-renamed Daimler AG claims Europe's top spot with a budget of US$7.34 billion. No other carmakers made it into the top eight spots worldwide, reports The Detroit News. Even beyond the massive success Ford has achieved over the last century, as the car maker moves into the twenty-first century, it is showing the long legs that come with deep pockets. The Ford S-Max MPV - 2006 Scottish Car of the Year - has been hailed by many automotive journalists as one of the best MPVs to come along in ages. Fit and finish are well above par, styling is conservative but attractive, and most of all, the vehicle is practical and affordable. Ford's Focus, beloved by many die-hard fans, has fared equally well in the European press - where the Euro-spec Focus is a quick, affordable, and fun car in which to do your daily errands. Best of all, you can then put some heat in the tires and a smile on your face on the way home. However, the question that must be posed, remains. Ford's annual US$8 billion R&D budget would fully fund at least 3 entire seasons of Formula 1 - for all 11 teams, each with 2 primary cars and 1 backup, with their own engine development and construction teams, driver salaries - everything, from buses to bolts, Ford's budget could do the F1 season thrice over in a year. Is that much spending really necessary? After all, Ford isn't looking to make 330km/h MPVs that pull 4g under breaking. They're looking to build people movers for the suburban family. But, as history has shown, Ford's dedication to technology and its advancement, while not always cheap, has produced some of the most incredible automotive feats of our time. Who are we to quibble with 100 years of automotive expertise? We can only hope that some of the excellence that powers Ford at the top trickles down to the suburban consumer, where the cars have been looking a bit lackluster lately, save for the occasional Mustang.
Ford's R&D budget second biggest in the world

Ford's R&D budget second biggest in the world

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Ford was founded on technological innovation. One of the first American carmakers to successfully employ assembly lines, it has since charted many industry firsts. Through its partnership with Cosworth, the company supplied the motors that powered 176 Formula 1 Grand Prix wins. The unparalleled dominance of the GT40 at LeMans in the 1960s - still the only American car ever to win the overall title at the famed endurance race - is still talked about in racing circles around the world. And who can forget the contributions the blue oval made to the World Rally Championship over the last 34 years? All of this success and innovation comes at a price - a very large research and development budget.

Although Toyota holds top spot in global auto sales, the highest automotive R&D budget honors go to Ford, which comes in second in the world - of all companies in any industry - only to Pfizer, the pharmaceutical mega-corporation. Checking in around US$8 billion annually, Ford's research budget surpasses that of both Johnson & Johnson and Microsoft, who round out the top four spots. The newly-renamed Daimler AG claims Europe's top spot with a budget of US$7.34 billion. No other carmakers made it into the top eight spots worldwide, reports The Detroit News.

Even beyond the massive success Ford has achieved over the last century, as the car maker moves into the twenty-first century, it is showing the long legs that come with deep pockets. The Ford S-Max MPV - 2006 Scottish Car of the Year - has been hailed by many automotive journalists as one of the best MPVs to come along in ages. Fit and finish are well above par, styling is conservative but attractive, and most of all, the vehicle is practical and affordable. Ford's Focus, beloved by many die-hard fans, has fared equally well in the European press - where the Euro-spec Focus is a quick, affordable, and fun car in which to do your daily errands. Best of all, you can then put some heat in the tires and a smile on your face on the way home.

However, the question that must be posed, remains. Ford's annual US$8 billion R&D budget would fully fund at least 3 entire seasons of Formula 1 - for all 11 teams, each with 2 primary cars and 1 backup, with their own engine development and construction teams, driver salaries - everything, from buses to bolts, Ford's budget could do the F1 season thrice over in a year. Is that much spending really necessary? After all, Ford isn't looking to make 330km/h MPVs that pull 4g under breaking. They're looking to build people movers for the suburban family.

But, as history has shown, Ford's dedication to technology and its advancement, while not always cheap, has produced some of the most incredible automotive feats of our time. Who are we to quibble with 100 years of automotive expertise? We can only hope that some of the excellence that powers Ford at the top trickles down to the suburban consumer, where the cars have been looking a bit lackluster lately, save for the occasional Mustang.

Tags: Industry

Posted in: Ford, News


Comments (7 total)

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  1. By HECTOR #1, Posted: 10/8/2007

    And yet, for all of that money spent, here in America Ford doesn't have much to show for it. The Edge is a bona fide failure. The Taurus is a laughingstock. The new Focus is like a sheep among lions (my opinion until proven otherwise by sales)...

    What is it? The benefits of that spenditure are only seen in Europe? Isn't Ford still an American company? How is it the Europeans get the Mondeo and we get the shoebox on wheels with plasticky interior called the Taurus?

    And speaking of the Taurus. R&D gets a lot of money but how much exactly is the idiot who said *hey! you know what would work? Let's bring back the name Taurus! That'll change things!* paid?

  2. By worldbfree4me #2, Posted: 10/8/2007

    Hector, I don't know what country you reside in, but Ford has a large presence in the United States no doubt. And just because you don't personally like their products, or have not driven a Ford lately does not mean Ford is not successful here in the States. The Taurus was introduced in the mid 80's and is still on the road today near you. The Mustang is most likely older than you and is still the reigning affordable sports car sales champ. The F-Series probably has been involved in the construction of most American cities. And in cities like Texas, its known some as a Cowboy Cadillac. "Work in it and go to Church in it. And oh yeah, the E-Series has I'm sure carried more than a few million to the Park for fun and to the Hospital for care among other places and that's just 4 products conceived by their vaunted R & D efforts. So, any more questions.

  3. By Nice #3, Posted: 10/8/2007

    worldfree4me, list for us 10 things ford has done for automotive innovation besides the assembly line. I can list 100 safety and performance features introduced by german and japanese manufacturers.

  4. By HECTOR #4, Posted: 10/8/2007

    World:

    I am as American as apple pie and bleed red, white and blue.

    But, let's face it: Ford products are at least one product cycle behind the competition. This is reflected in their poor sales and continuing loss of market share.

    And their response to this disaster? To bring the name Taurus back. This is an idea that is so asinine as to defy belief. And you know what's worse? The moron who thought it up probably gets paid more money in a year than I'll make in my entire life.

    The name Taurus was killed because it had become sinonimous with CRAP. My father's second heart attack can be directly attributed to his piece of shit Taurus. Ford did very well in killing it and in bringing on the Five Hundred. But instead oif sticking to it and making it better they brought back the Taurus name plate. And renamed the Freestyle the Taurus X.

    SCORE!!

    Camry and Accord are names that need not be changed because they are sinonimous with quality so why would they?

    As to the other ones:

    Mustang: bought by kids looking for inexpensive power and not caring for quality or durability and by old guys trying to recapture their youth.

    F Series: Good quality, semi-good looks. Better than the offerings from Chevy but does nothing the competition can't do. For my money I'll take a Tundra.

    E-Series: Isn't that as extinct as the Ford Cortina?

    So I have just one or two more questions: if they spend so much money on R&D how come they have nothing to show for it at least here in America? How come Ford continues to lose market share? How come people still say Found On Road Dead?

  5. By Gus #5, Posted: 10/8/2007

    I like Fords, always have had them and they've been very reliable. That said they are behind in many respects compared to European and Japanese cars. What they offer is bang for the buck, certainly, but as evidenced by the European Ford products, they could offer so much more here.

  6. By car fan #6, Posted: 10/10/2007

    I don't know where these 'circles' are but I can't hear them. I belong to auto groups, forums, clubs. I participate and read any and everything about cars, yet I never ever hear about the GT40s achievements, much less the Ford Rallye experience. I'm simply stating facts here, Ford over the years has done a very very poor job at marketing and has absolutely nothing to show for any success it has earned on the tracks. It is amazing that with the R&D budget they have they have not been able to produce almost anything worth buying (over their competition). It only shows the level of incompetence they have. Harsh words but that is their reality.

  7. By Dobkins #7, Posted: 9/12/2008

    In July 2008 I completed a simple model whereby i both show and prove that two magnets can be separated using LESS energy than the energy produced when those same two magnets are attracted to each other.
    This has been filmed on a 5 minute DVD which I can produce as proof of this breakthough.
    If you are interested in taking this matter further - please contact me by e-mail

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