Finance

Ford CEO: We buy every competitor's car, tear them down, and rebuild them to see how they work

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Mark Fields Ford
Ford CEO Mark Fields.  REUTERS/Rebecca Cook

Ford CEO Mark Fields visited Business Insider's office on Tuesday ahead of the New York Auto Show, and he said some interesting things about how the automaker learns from its competitors.

"We do teardowns of all major competitive vehicles," Fields said in response to a question about whether the company would dismantle the new Tesla Model X SUV in the same way it took apart the Model S sedan.

"I'm a big believer that you should never shut yourself off to learning," he said.

He was echoing an entertaining comment he made about the Model S on an earnings call in 2014:

"We have driven the Model S, torn it down, put it back together, and driven it again — we're very familiar with that product," he said.

"We learn things about technology, and we learn things about costs," Fields told Business Insider. "And in many cases we can say that we do that better, and in some cases we say, 'Oh my gosh, here's a neat idea, how do we adopt that into our process?'"

Tesla gets a lot of attention for its innovative, high-tech electric vehicles, but Ford competes globally in numerous segments and needs to keep pace with everyone. The carmaker, which buys the competitive models it sends to its teardown garages, is always looking to keep pace with new design and engineering challenges.

Fields quipped that the company would always "negotiate to get a good deal" when buying the cars for teardowns.

In the same conversation, Fields said Ford was also rolling out over-the-air, or OTA, software updates; it's part of the new Sync 3 infotainment system the company has used since 2007 and developed originally with Microsoft. Sync Connect is a modem-base addition to a system that is undergirded by BlackBerry software.

"It's coming," Fields said.

Tesla has delighted owners with OTA updates that can make a Model S seem like a new car literally overnight. For example, owners with vehicles equipped for Autopilot semiautonomous driving woke up after the update was released last year to find their cars ready to drive themselves.

Major automakers are now moving in this direction. General Motors will be using OTA updates in a limited manner. They're unlikely to be quite as ambitious as Tesla, still a small company that can push the envelope on technology.

The big players in the industry have been happy to observe CEO Elon Musk's experiments and follow them when they make sense.

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Matthew is a Business Insider senior correspondent who covers transportation (and chess, guitars, home-audio equipment, cocktails, and sometimes classic rock). His focus is the global auto industry, including Tesla, a company he has chronicled since 2007. He also looks after Business Insider's annual Car of the Year award, announced every fall. He's written for The New York Times, Slate, The Washington Post, the Los Angeles Times, HuffPost, and CBS Interactive. He's commented on the auto industry for a variety of media outlets, including Sirius XM, MSNBC, Radio France, KPCC, and KCRW.  DeBord won the 2018 Ken Purdy Award from the International Motor Press Association. He's taught at New York University's Stern School of Business and the Marshall School of Business at the University of Southern California. His book "Return to Glory: The Story of Ford's Revival and Victory at the Toughest Race in the World" was published in 2017 by Atlantic Monthly Press and came out in paperback in June 2018. In the New York Times Book Review, Jonathan Kellerman called it a "page-turning synthesis of business book and adventure saga."