MINOR PROJECT

REPORT ON
FORD MOTORS
COMPANY
Submitted in partial fulfillment of the
requirements for the award of the
degree of
BACHELOR OF BUSINESS
ADMINISTRATION
to
Guru Gobind Singh Indrara!"ha
Uni#$r!i"%& D$'hi
Under the Guidance of
Submitted by
MS. Nami ta Mi shra
Priya Gupta H. O. D.
BBA-III Sem
Enrollment No. 060!"0!#!!
S$!!ion ()*(
+ *,
Table Of Contents
Chapter
no
Chapter name Page no
ACKNOWLEDGEMNT 1
STUDENT DECLARATON 2
! ntro"#$t%on 3
& '%s%on( M%ss%on an" Ob)e$t%*es 6
+ ,%stor- 7
. S#$$ess Path 11
/ Roa"blo$0s an" 1eas%ble Sol#t%ons 27
2 1#t#re pro)e$t%ons 30
3 Con$l#s%ons of the St#"- 32
4 Profess%on O#t$ome 33
5 66LOGRAP,7 34
LST O1 TA6LES
Table No T%tle Page No
1 Ford motors company profile 4
2 Ford motors brands 12
3 Market share figures for 2008 to 11 23
LST O1 S7M6OLS
S No S-mbol Nomen$lat#re 8 Mean%ng
1 ! "nd
2 # $s %ollar
LST O1 1GURES
Chapter
no
1%g#re No Page No
1 1&1 'enry Ford 3
3 3&1 'enry Ford 7
3&2 Ford (uadricycle 7
3&3 Ford Model ) 1*20 8
4 4&1 Ford +t 11
4&2 Ford Fiesta 11
4&3 2010 Ford Fle, 12
4&4 Ford F 1-0 2007 12
4&- 1*80 Ford truck 13
4&6 .ilsons )ruck /ines Ford 13
4&7 0oca 0ola -0s 14
4&8 Ford 1700 1us 1-
4&* Ford 2 3eries )ractor 16
4&10 245% 5olice 0ar 17
4&11 6range 0ounty 5olice %epartment k* $nit 0ar 17
4&12 /"5% 5olice 0ar 17
4&13 Ford 7ngine 18
4&14 2ascar Ford Fusion 18
4&1- Ford Focus 8s .rc 0* 1*
4&16 Ford Mustang +t 20
4&17 Ford Focus Fle,ifuel 21
4&18 Ford 7scape plug9in hybrid 22
LST O1 A66RE'ATONS
S No Abbre*%ate" Name 1#ll name
1 307 3outhern 0alifornia 7dison
2 :71" :oluntary 7mployee
1eneficiary "ssociation
3 02+ 0ompressed 2atural +as
4 0FM" 0hangan Ford Ma;da
"utomobile
- M<F/ Mahindra Ford <ndia /imited
STUDENT DECLARATON
< PR7A GUPTA declare this pro=ect report entitled 91ORD MOTORS COMPAN7: is an
original piece of >ork done and submitted by me to>ards partial fulfillment of my gra duate
diploma in bachelot of business administration&
?58<4" +$5)"@
&
ACKNOWLEDGEMENT
)his pro=ect >orkA >hich is my first step in the field of professionalismA has been successfully
accomplished only because of timely support of my >ell >ishers& < >ould like to pay my sincere
regards and thank thoseA >ho directed me at eBery step in my pro=ect >ork&
< e,tend my thanks to my pro=ect guide M3& 2"M<)" M<3'8" for her scholarly
guidanceA constant superBision and encouragement& it is due to her personal interest and initiatiBe
that the pro=ect >ork is published in the present form&
/ast but not the leastA < >ould also thank to the staff member of )ecnia <nstitute of adBanced studies
A friends >ho haBe directly or indrectly contributed in making this pro=ect success&
? 58<4" +$5)" @
!
C,APTER;; NTRODUCTON
COMPAN7 PRO1LE
1or" Motor Compan- is an "merican multinational automaker based in %earbornA MichiganA a
suburb of %etroit& )he automaker >as founded by 'enry Ford and incorporated on Cune 16A 1*03& <n
addition to the Ford and /incoln brandsA Ford o>ns a small stake in Ma;da in Capan and "ston
Martin in the $D& Fords former $D subsidiaries Caguar and /and 8oBer >ere sold to )ata Motors of
<ndia in March 2008& <n 2010 Ford sold :olBo to +eely "utomobile& Ford discontinued
the Mercury brand after the 2011 model year& )he company is controlled by the Ford familyA >hich
o>ns a controlling stake in Ford Motor&
Fig 1.1 ,enr- 1or"
Ford introduced methods for large9scale manufacturing of cars and large9scale management of an
industrial >orkforce using elaborately engineered manufacturing seEuences typified by
moBing assembly linesF by 1*14 these methods >ere kno>n around the >orld as Fordism& Fords
former $D subsidiaries Caguar and /and 8oBerA acEuired in 1*8* and 2000 respectiBelyA >ere sold
to )ata Motors in March 2008& Ford o>ned the 3>edish automaker:olBo from 1*** to 2010& <n
2011A Ford discontinued the Mercury brandA under >hich it had marketed entry9leBel lu,ury cars in
the $nited 3tates since 1*38&
Ford is the second9largest $&3&9based automaker and the fifth9largest in the >orld based on 2010
Behicle sales& "t the end of 2010A Ford >as the fifth largest automaker in 7urope& Ford is the eighth
9
"
"
#
ranked oBerall "merican9based company in the 2010 Fortune -00 listA based on global reBenues in
200* of #118&3 billion& <n 2008A Ford produced -&-32 million automobiles and employed about
213A000 employees at around *0 plants and facilities >orld>ide&
1or" Motor Compan-
T-pe
5ublic company
Tra"e" as 2437G F
3!5 -00 0omponent
n"#str- "utomotiBe
1o#n"e" Cune 16A 1*03
1o#n"er<s= 'enry Ford
,ea">#arters %earbornA MichiganA $&3&
Area ser*e" .orld>ide
Ke- people .illiam 0& FordA Cr&
?7,ecutiBe 0hairman@
"lan 8& Mulally
?5resident ! 076@
Pro"
$ts "utomobiles
"utomotiBe parts
Ser*%$es "utomotiBe finance
:ehicle leasing
:ehicle serBice
Re*en#e $3#136&26 billion ?2011@
H1I
Operat%ng
%n$ome
$3#8&681 billion ?2011@
H1I
Net %n$ome $3#20&21 billion ?2011@
H1I
Total assets $3#178&3- billion ?2011@
H1I
Total e>#%t- $3#1-&07 billion ?2011@
H1I
Emplo-ees 164A000 ?2011@
H1I
D%*%s%ons Ford
/incoln
S#bs%"%ar%es "utomotiBe 0omponents
'oldings
Ford 0redit
)roller
Ford "ustralia
Ford do 1rasil
Ford of 7urope
Ford of <ndia
Webs%te Ford&com
CHAPTER-II- .ISION& MISSION AND OBJECTI.ES
'%s%on
)o become the >orlds leading consumer company for automotiBe products and serBices&
M%ss%on
.e are a global family >ith a proud heritage passionately committed to proBiding personal
mobility for people around the >orld&
.e anticipate consumer need and deliBer outstanding products and serBices that improBe
peoples liBes&
'al#es
6ur business is driBen by our consumer focusA creatiBityA resourcefulnessA and entrepreneurial
spirit& .e are an inspiredA diBerse team& .e respect and Balue eBeryones contribution& )he health
and
safety of our people are paramount&
.e are a leader in enBironmental responsibility& 6ur integrit y is neBer compromised and >e make
a positiBe contribution to society&
.e constantly striBe to improBe in eBerything >e do& +uided by these BaluesA >e proBide
superior returns to our shareholders&
Ford motors is the 3
rd
largest manufacturer of the cars in the >orld&
C,APTER;; ,STOR7
,STOR7
&?th $ent#r-
1%g +@! ,enr- 1or"
'enry Fords first attempt at a car company under his o>n name >as the 'enry Ford 0ompany on
2oBember 3A 1*01A >hich became the 0adillac Motor 0ompany on "ugust 22A 1*02 after Ford left
>ith the rights to his name& )he Ford Motor 0ompany >as launched in a conBerted factory in 1*03
>ith #28A000 in cash from t>elBe inBestorsA most notably Cohn and 'orace %odge ?>ho >ould later
found their o>ncar company@& %uring its early yearsA the company produced =ust a fe> cars a day at
its factory on Mack "Benue in %etroitA Michigan& +roups of t>o or three men >orked on each carA
assembling it from parts made mostly by supplier companies contracting for Ford& .ithin a decade
the company >ould lead the >orld in the e,pansion and refinement of the assembly lineconceptF and
Ford soon brought much of the part production in9house in a Bertical integration that seemed a better
path for the era&
1%g +@& 1or" A#a"r%$-$le
'enry Ford >as 40 years old >hen he founded the Ford Motor 0ompanyA >hich >ould go on to
become one of the >orlds largest and most profitable companiesA as >ell as being one to surBiBe
the +reat %epression& "s one of the largest family9controlled companies in the >orldA the Ford
Motor 0ompany has been in continuous family control for oBer 100 years&
<n 1*08 Ford introduced the first engine >ith a remoBable cylinder headA in the Model )& <n 1*30A
Ford introduced the the Model "A the first car >ith safety glass in the >indshield& Ford launched the
first lo> priced :8 engine po>ered car in 1*32&
Ford offered the /ifeguard safety package from 1*-6A >hich included such innoBations as a standard
deep9dish steering >heelA optional frontA andA for the first time in a carA rear seatbeltsA and an optional
padded dash& Ford introduced child9proof door locks into its products in 1*-7A and in the same year
offered the first retractable hardtop on a mass9produced si,9seater car& )he Ford Mustang >as
introduced in 1*64& <n 1*6- Ford introduced the seat belt reminder light&
.ith the 1*80sA Ford introduced seBeral highly successful Behicles around the >orld& <n 1**0 and
1**4 respectiBelyA Ford also acEuired Caguar 0arsand "ston Martin& %uring the mid9 to late 1**0sA
Ford continued to sell large numbers of BehiclesA in a booming "merican economy >ith a soaring
stock market and lo> fuel prices&
1%g +@+ 1or" Mo"el T !5&?
.ith the da>n of the ne> centuryA legacy healthcare costsA higher fuel pricesA and a faltering
economy led to falling market sharesA declining salesA and diminished profit margins& Most of the
corporate profits came from financing consumer automobile loans through Ford Motor 0redit
0ompany&
&!st $ent#r-
1y 200-A corporate bond rating agencies had do>ngraded the bonds of both Ford and +M to =unk
statusA citing high $&3& health care costs for an aging >orkforceA soaring gasoline pricesA eroding
market shareA and dependence on declining 3$: sales for reBenues& 5rofit margins decreased on
large Behicles due to increased JincentiBesJ ?in the form of rebates or lo> interest financing@ to
offset declining demand& <n the latter half of 200-A 0hairman 1ill Ford asked ne>ly appointed Ford
"mericas %iBision 5resident Mark Fields to deBelop a plan to return the company to profitability&
Fields preBie>ed the 5lanA named The Way ForwardA at the %ecember 7A 200- board meeting of the
company and it >as unBeiled to the public on Canuary 23A 2006& J)he .ay For>ardJ
included resi;ing the company to match market realitiesA dropping some unprofitable and inefficient
modelsA consolidating production linesA closing 14 factories and cutting 30A000 =obs&)hese cutbacks
are consistent >ith Fords roughly 2-K decline in $&3& automotiBe market share since the mid 9late
1**0s&
<n the face of demand for higher fuel efficiency and falling sales of miniBansA Ford moBed to
introduce a range of ne> BehiclesA including J0rossoBer 3$:sJ built on unibody car platformsA
rather than more body9on9frame chassis& <n deBeloping the hybrid electric po>ertrain technologies
for the Ford 7scape 'ybrid 3$:A Ford licensed similar )oyota hybrid technologies to aBoid patent
infringements& Ford announced that it >ill team up >ith electricity supply company 3outhern
0alifornia 7dison ?307@ to e,amine the future of plug9in hybrids in terms of ho> home and Behicle
energy systems >ill >ork >ith the electrical grid& $nder the multi9million9dollarA multi9year pro=ectA
Ford >ill conBert a demonstration fleet of Ford 7scape 'ybrids into plug9in hybridsA and 307 >ill
eBaluate ho> the Behicles might interact >ith the home and the utilitys electrical grid& 3ome of th e
Behicles >ill be eBaluated Jin typical customer settingsJA according to Ford&
1ill Ford became 5resident of the company in "pril 2006A >ith the retirement of Cim 5adilla& FiBe
months laterA in 3eptemberA he stepped do>n as 5resident and 076A naming "lan Mulally as his
successorA and becoming 7,ecutiBe 0hairman& <n %ecember 2006A the company raised its borro>ing
capacity to about #2- billionA placing substantially all corporate assets as collateral to secure the line
of credit& 0hairman 1ill Ford has stated that Jbankruptcy is not an optionJ& Ford and the $nited "uto
.orkersA representing appro,imately 46A000 hourly >orkers in 2orth "mericaA agreed to a historic
contract settlement in 2oBember 2007 giBing the company a substantial break in terms of its
ongoing retiree health care costs and other economic issues& )he agreement included the
establishment of a company9fundedA independently run :oluntary 7mployee 1eneficiary
"ssociation ?:71"@ trust to shift the burden of retiree health care from the companys booksA
thereby improBing its balance sheet& )his arrangement took effect on Canuary 1A 2010& "s a sign of
its currently strong cash positionA Ford contributed its entire current liability ?estimated at
appro,imately $3#-&- billion as of %ecember 31A 200*@ to the :71" in cashA and also pre9
paid $3#-00 million of its future liabilities to the fund& )he agreement also giBes hourly >orkers the
=ob security they >ere seeking by haBing the company commit to substantial inBestments in most of
its factories&
)he automaker reported the largest annual loss in company history in 2006 of #12&7 billionA and
estimated that it >ould not return to profitability until 200*& 'o>eBerA Ford surprised .all 3treet in
the second Euarter of 2007 by posting a #7-0 million profit& %espite the gainsA the company finished
the year >ith a #2&7 billion lossA largely attributed to finance restructuring at :olBo&
6n Cune 2A 2008A Ford sold its Caguar and /and 8oBer operations to )ata Motors for #2&3 billion&
%uring 2oBember 2008A FordA together >ith 0hrysler and +eneral MotorsA sought financial aid at
0ongressional hearings in .ashingtonA %&0& in the face of >orsening conditions caused by
the automotiBe industry crisis& )he three companies presented action plans for the sustainability of
the industry& Ford opted not to seek goBernment assistance& +M and 0hrysler receiBed assistance
through the 7,ecutiBe 1ranch from the )&"&8&5&legislation funding proBisions& 6n %ecember 1*A the
cost of credit default s>aps to insure the debt of Ford >as 68 percent the sum insured for fiBe years
in addition to annual payments of - percent& )hat meant #6&8 million paid upfront to insure
#10 million in debtA in addition to payments of #-00A000 per year& <n Canuary 200*A Ford reported a
#14&6 billion loss in the preceding yearA a record for the company& )he company retained sufficient
liEuidity to fund its operations& )hrough "pril 200*A Fords strategy of debt for eEuity e,changesA
erased #*&* 1 in liabilities ?28K of its total@A in order to leBerage its cash position& )hese actions
yielded Ford a #2&7 billion profit in fiscal year 200*A the companys first full9year profit in four
years&
C,APTER;';SUCCESS PAT,
)he Ford Motor 0ompany makes and sells automobiles& Founded in 1*03A the company deBeloped
from 'enry Ford and his Bision to make cars aBailable to eBeryone& 1eginning in 1*80A people
outside of the Ford family held many of the po>erful positions >ithin the companyA but on 6ct& 30A
2001A 'enry FordLs great grandsonA .illiam 0lay Ford Cr&A >as named 0hief 7,ecutiBe 6fficerA
ending the decades of po>er sharing&
FordA number four in the Fortune -00A is a huge conglomerate and the top pick9up truck producer in
the >orld& 6nly +eneral MotorsA its greatest competitorA makes more cars& )oyota and %aimler
0hrysler are other top competitors& Ford has gro>n so large that it has bought out many competitors
in the car industry including :olBoA "ston MartinA CaguarA /incolnA /and 8oBerA MercuryA and 33K
of Ma;da& Ford and its subsidiaries operate oBer 26A000 dealerships >orld>ide.
PRODUCT AND SER'CES
A#tomob%les
1%g .@! 1or" Gt 1%g .@& 1or" 1%esta
"s of 2012 Ford Motor 0ompany sells a broad range of automobiles under the Ford marEue
>orld>ideA and an additional range of lu,ury automobiles under the /incoln marEue in the $nited
3tates& )he company has sold Behicles under a number of other marEues during its history&
)he Mercury brand >as introduced by Ford in 1*3*A continuing in production until 2011 >hen poor
sales led to its discontinuation& <n 1*-8A Ford introduced the 7dsel brandA but poor sales led to its
discontinuation in 1*60& <n 1*8-A the Merkurbrand >as introduced in the $nited 3tates to market
products produced by Ford of 7uropeF it >as discontinued in 1*8*&
<n 2011A C % 5o>er ranked Ford 23rd in initial EualityA a drop from the fifth in 2010& 0onsumer
8eports maga;ine also stopped to recommend seBeral ne> Ford 3$:s blaming the 3ync
entertainment and phone system used&
1%g .@+ &?!? 1or" 1leB 1%g .@. 1or" 1 !/? &??3
Ford acEuired the 1ritish sports car maker "ston Martin in 1*8*A later selling it on March 12A
2007A retaining a small minority stakeA and bought:olBo 0ars of 3>eden in 1***A selling it
to Mhe=iang +eely 'olding +roup in 2010& <n 2oBember 2008 it reduced its 33&4K controlling
interest inMa;da of CapanA to a 13&4K non9controlling interest& 6n 2oBember 18A 2010A Ford
reduced their stake further to =ust 3KA citing the reduction of o>nership >ould allo> greater
fle,ibility to pursue gro>th in emerging markets& Ford and Ma;da remain strategic partners through
=oint Bentures and e,changes of technological information& <t shares an "merican =oint Benture plant
in Flat 8ockA Michigan called "uto "lliance >ith Ma;da& Ford sold the $nited Dingdom9
based Caguar and /and 8oBer companies and brands to )ata Motors of <ndia in March 2008&
Mar>#e Co#ntr- of or%g%n 7ears #se"CoDne" Mar0ets
1o r" $nited 3tates 1*03 to present +lobal
L %n$ o ln $nited 3tates 1*22 to present 2orth "mericaA Middle 7ast
M er$#r- $nited 3tates 1*3* to 2011 2orth "merica
E "s e l $nited 3tates 1*-8 to 1*60 2orth "merica
M er 0 #r $nited 3tates 1*8- to 1*8* 2orth "merica
Eag # a r $nited Dingdom 1*8* to 2008 +lobal
Aston Mart%n $nited Dingdom 1*8* to 2007 +lobal
' o l* o 3>eden 1*** to 2010 +lobal
L a n" R o* er $nited Dingdom 2000 to 2008 +lobal
Tr#$0s
1%g .@/ !54? 1or" tr#$0 1%g .@2 W%lsonFs Tr#$0 L%nes 1or"
1%g .@3 Co$a Cola /?Fs
Ford has produced trucks since 1*08& 0ountries >here Ford commercial Behicles are or >ere made
include "rgentinaA "ustraliaA 1ra;ilA 0anada ?badged Mercury too@A FranceA +ermanyA <ndiaA
2etherlandsA 5hilippinesA 3pain ?badged 7bro too@A )urkeyA $D ?badged also Fordson and )hames@
and $3"&
From the 1*40s to late 1*70s Fords Ford F93eries >ere used as the base for light trucks for the
2orth "merican market&
Most of these Bentures are no> e,tinct& )he 7uropean one that lasted longest >as the lorries arm
of Ford of 1ritainA >hich >as eBentually sold to <Beco group in 1*86A and >hose last significant
models >ere the)ranscontinental and the 0argo&
<n the $nited 3tatesA Fords heaBy trucks diBision ?0lasses 7 and 8@ >as sold in 1**7 to Freightliner
)rucksA >hich rebranded the lineup as 3terling& Freightliner is in the process of discontinuing this
line&
/ine of heaBy trucks made by Ford for the 2orth "merican marketG
Ford F96-0 N =oint Benture model from 2000 to present
Ford /*000 N last model year 1***
Ford /2)*000 N short nose tandem a,le from 1*70s to 1**7
Ford /)*000 N tandem a,le >ith last model year 1**7
Ford F)*00 N until 1**8
Ford /)8000 N last model year 1**8
Ford /7000 N last model year 1**6
Ford continues to manufacture medium duty trucks under the F96-0 and F97-0 badges& <n 2001A the
company entered into a =oint Benture >ith 2aBistar <nternational to produce medium duty
commercial trucks& )he first ne> model from the ne> corporationA kno>n as 1lue %iamond )ruck
0ompany //0A>as the 2006 model year /0FA the first Ford branded cab9oBer9engine design in the
$nited 3tates since Freightliners acEuisition of the 0argo in the mid91**0s&)he /0F >as
discontinued in 200* and Fords 2011 medium9duty commercial offerings are limited to the t>o F9
3eries&
<n 1*** the end of the F800 meant Ford >as not producing in any F9series heaBy truck
chassis&
<n 7uropeA Ford manufactures the Ford )ransit =umbo Ban >hich is classed as a /arge +oods
:ehicle and has a payload of up to 2A26- kgA there are options of a panel BanA pickup or chassis cab&
)he Ford )ransit is also aBailable as a light Ban called the Ford )ransit 0onnect and the Ford
8anger pickup is aBailable&
6#ses
1%g .@4 1or" 63?? 6#s
Ford manufactured complete buses in the companys early historyA but today the role of the company
has changed to that of a second stage manufacturer& <n 2orth "mericaA the 793eries is still used as a
chassis for small school buses and the F96-0 is used in commercial bus markets& <n the 1*80s and
1**0sA the medium9duty 1700 >as a popular chassis used by school bus body manufacturers
including )homas 1uiltA.ard and 1lue 1irdA but Ford lost its market share due to industry
contraction and agreements bet>een body manufacturers& 6lder bus models includedG
5rior to 1*3*A For buses >ere based on truck bodiesG
Model 1 N 1*30s
Model ) N 1*20s
F910- school bus
%uring .orld .ar << Ford manufactured Ford )ransit busA a series of small transit buses >ith bodies
built by second partyG
0*91O1*91 0ity transit bus N 1*3*N1*41
1*91O2*91 0ity transit bus N 1*41N1*42
4*91O7*91 0ity transit bus N 1*44N1*47
6*91 0ity transit bus N 1*46N1*47
2*91 0ity transit bus N 1*46N1*47
729) transit bus N 1*44N1*4-
"fter 1*46 the )ransit 0ity bus >as sold as Universal Bus >ith the roof changed from fabricO>ood
to all metalG
7*91 $niBersal transit bus N 1*46N1*47
3ucceeding the Ford )ransit bus >as the Ford 8M busesG
8M1 transit bus N >ith .ayne .orks 1*48NP
Follo>ing .orld .ar << and from 1*-0s on>ards Ford lost out to +eneral Motors& )his led to the
end of transit buses for Ford in 2orth "merica&
1-00 or 19series N 1*-091**0s based on Ford F9series truck chassis used by school bus body
manufacturers
<n 7uropeA Ford manufactures the Ford )ransit Minibus >hich is classed in 7urope as a 5assenger
0arrying :ehicle and there are options of 12A 1- or 17 seaters& <n the past 7uropean models
includedG
7M
29138
% series buses ?"ustralia@
Tra$tors
1%g .@5 1or" N Ser%es Tra$tor
)he J'enry Ford and 3on 0ompanyJ began making Fordson tractors in 'enrys hometo>n of
3pring>ells ?later part of %earbornA Michigan from 1*07 to 1*28A from 1*1* to 1*32A at 0orkA
<reland and 1*33N1*64 at%agenhamA 7nglandA later transferred to 1asildon& )hey >ere also
produced in /eningrad beginning in 1*24&
<n 1*86A Ford e,panded its tractor business >hen it purchased the 3perry92e> 'olland skid9steer
loader and hay balerA hay tools and implement company from 3perry 0orporation and formed Ford9
2e> 'olland >hich bought out :ersatile tractors in 1*88& )his company >as bought by Fiat in 1**3
and the name changed from Ford 2e> 'olland to 2e> 'olland& 2e> 'olland is no> part of 02'
+lobal&
1%nan$%al ser*%$es
Ford offers automotiBe finance through Ford Motor 0redit 0ompany&
Pol%$e $ars
1%g .@!? N7PD Pol%$e Car 1%g .@!! Orange Co#nt- Pol%$e Department 05
Un%t Car
1%g .@!& LAPD Pol%$e Car
Ford aloso manufactures Barious police cars for Barious police departments&
A#tomot%*e $omponents
Fords FoMoCo parts diBision sells aftermarket parts under the Motorcraft brand name& <t has spun
off its parts diBision under the name :isteon&
Motorsport
1%g .@!+ 1or" Eng%ne
"long >ith 3helby and 0heBroletA Ford is one of only three "merican constructors to >in titles on
the international scene at the F<" .orld 0hampionships& "s a constructorA Ford >on the .orld
3portscar 0hampionship three times in 1*66A 1*67 and 1*68A and the .orld 8ally
0hampionship three times in 1*7*A 2006 and 2007&
Sto$0 $ar ra$%ng
1%g .@!. Nas$ar 1or" 1#s%on
Ford is one of four manufacturers in 2"30"8s three ma=or seriesG 3print 0up 3eriesA 2ation>ide
3eriesA and 0amping .orld )ruck 3eries& Ma=or teams include 8oush Fen>ay 8acing and 4ates
8acing and 8ichard 5etty Motorsports& Ford is represented by the mid9si;e Fusion in the 3print 0upA
the Mustang in the 2ation>ide 3eriesA and by the F91-0 in the 0amping .orld )ruck 3eries& 3ome
of the most successful 2"30"8 Fords >ere the aerodynamic fastback Ford )orinoA Ford )orino
)alladegaA Mercury 0yclone 3poiler <<A and Mercury MontegosA and the aero9era Ford )hunderbirds&
)he Ford nameplate has >on eight manufacturers championships in 3print 0upA >hile Mercury has
>on one& )he Ford Fusion is also used in the "80" 8ema, 3eries&
1orm#la One
Ford >as heaBily inBolBed in Formula 6ne for many yearsA and supplied engines to a large number
of teams from 1*67 until 2004& )hese engines >ere designed and manufactured by 0os>orthA the
racing diBision that >as o>ned by Ford from 1**8 to 2004& Ford9badged engines >on 176 +rands
5ri, bet>een 1*67 and 2003 for teams such as )eam /otus and Mc/aren& Ford entered Formula 6ne
as a constructor in 2000 under the Caguar 8acingnameA after buying the 3te>art +rand 5ri, team
>hich had been its primary >orks team in the series since 1**7& Caguar achieBed little success in
Formula 6neA and after a turbulent fiBe seasonsA Ford >ithdre> from the category after the 2004
seasonA selling both Caguar 8acing ?>hich became 8ed 1ull 8acing@ and 0os>orth ?to +erald
Forsythe and DeBin DalkhoBen@&
Rall-
1%g .@!/ 1or" 1o$#s Rs Wr$ ?5
Ford has a long history in rallying and has been actiBe in the .orld 8ally 0hampionship since the
beginning of the >orld championshipA the 1*73 season& Ford took the 1*7* manufacturers title
>ith 'annu MikkolaA 1=Qrn .aldegRrd and "ri :atanen driBing the Ford 7scort 831800& <n
the +roup 1eraA Ford achieBed success >ith Ford 83200& 3ince the 1*** seasonA Ford has used
Barious Bersions of the Ford Focus .80 to much success& <n the2006 seasonA 159Ford .orld 8ally
)eam secured Ford its second manufacturers titleA >ith the Focus 83 .80 06 built by M93port and
driBen by JFlying FinnsJ Marcus +rQnholm and Mikko 'irBonen& 0ontinuing >ith +rQnholm and
'irBonenA Ford successfully defended the manufacturers >orld championship in the 2007 season&
Ford is the only manufacturer to score in the points for *2 consecutiBe racesF since the 2002
season opener Monte 0arlo 8ally&
Sports $ars
Ford sports cars haBe been Bisible in the >orld of sports car racing since 1*64& Most notably
the +)40 >on the 24 'ours of /e Mans four times in the 1*60s and is the only "merican car to eBer
>in oBerall at this prestigious eBent& Ford also >on the 1*68 <nternational 0hampionship for
Makes >ith the +)40A >hich still stands today as one of the all9time greatest racing cars& 3>iss
teamMatech +) 8acingA in collaboration >ith Ford 8acingA opened a ne> chapter >ith the Ford +)A
>inning the )eams title in the 2008 F<" +)3 7uropean 0hampionship&
1%g .@!2 1or" M#stang Gt
)he Ford Mustang has arguably been Fords most successful sports car& Cerry )itus >on the 1*6-
300" 5ro 1 2ational 0hampionship >ith a Mustang and the model >ent on to earn Ford the
300" )rans9"m 0hampionship title in both 1*66 and 1*67& Ford >on the )rans9"m 0hampionship
again in 1*70 >ith 5arnelli Cones and +eorge Folmer driBing 1oss 302 Mustangs for 1ud Moore
7ngineering& Ford took the 1*8- and 1*86 <M3" +)6 0hampionship >ith Mustangs driBen by Cohn
Cones and 3cott 5ruett before returning to )rans9"m glory >ith a championship in 1*8* >ith %orsey
3chroeder& Ford dominated )rans9"m in the 1**0s >ith )ommy Dendal >inning championships in
1**3A 1**-A 1**6A and 1**7 >ith 5aul +entilo;iadding yet another title in 1***& <n 200- the Ford
Mustang F8-000 took the championship in the 8ole, Doni 0hallenge 3eries in its first year on the
circuit& <n 2007 Ford added a Bictory in the +)4 7uropean 0hampionship& 2008 >as the first year of
the Mustang 0hallenge for the Miller 0upA a series >hich pits a full field of identical factory built
Ford Mustang race cars against each other& "lso in 2008A Ford >on the manufacturers championship
in the Doni 0hallenge 3eries and 'yper3port driBers Coe Foster and 3teBe Ma,>ell >on the driBers
title in a Mustang +)&
En*%ronment %n%t%at%*es
Ford announced in late 2008 Culy that it >ill bring si, of its more fuel9efficient 7uropean models to
the $&3&
Compresse" nat#ral gas
)he alternatiBe fossil fuel BehiclesA such as some Bersions of the 0ro>n :ictoria especially in fleet
and ta,i serBiceA operate on compressed natural gasSor 02+& 3ome 02+ Behicles haBe dual fuel
tanks N one for gasolineA the other for 02+ N the same engine can operate on either fuel Bia a
selector s>itch&
1leB%ble f#el *eh%$les
1%g .@!3 1or" 1o$#s 1leB%f#el
)he Ford Focus Fle,ifuel >as the first78- fle,ible fuel Behicle commercially aBailable in the
7uropean market&
Fle,ible fuel Behicles are designed to operate smoothly using a >ide range of aBailable ethanol
fuel mi,turesSfrom pure gasolineA to bioethanol9gasoline blends such as 78- ?8-K ethanol and
1-K gasoline@ or 7100 ?neat hydrous ethanol@ in 1ra;il& 5art of the challenge of successful
marketing alternatiBe and fle,ible fuel Behicles in the $&3&A is the general lack of establishment of
sufficient fueling stationsA >hich >ould be essential for these Behicles to be attractiBe to a >ide
range of consumers& 3ignificant efforts to ramp up production and distribution of 78- fuels are
under>ay and e,panding&
Ford is also planning to produce 2-0A000 78-9capable Behicles a year in the $3A adding to some
1&6 million already sold in the last 10 years&
0urrent Ford 78- Fle,ible Fuel :ehicles sold in 2orth "merica and 7urope are theG Ford F9
1-0A Ford 0ro>n :ictoriaA Ford FocusA Ford 09M"TA Ford MondeoA Ford 39M"TA Ford
+ala,yA Ford )aurusA Ford 8angerA Ford 7,plorerA Ford 7,pedition and 7/OMa,A Mercury +rand
MarEuisA /incoln )o>n 0arand Ford Fusion&
0urrent Ford 7100 Fle, sold in the 1ra;ilian market are the 0ourierA Ford 7co3portA Ford
FiestaA Ford Focus and Ford Da&
Ele$tr%$ *eh%$les
Ford e,pects electric Behicles >ill represent a Jma=or portionJ of its lineup a decade from no> as the
automaker breaks a>ay from a recent reliance on pickup trucks and 3$:s& )he stakes are high
because Fords stepped9up inBestment is coming at a time >hen the $&3& goBernment is demanding
steep increases in fuel economy and has put money for>ard to help automakers adopt ne> fuel 9
saBing technologies&
Ford >ill partner >ith 0oulomb )echnologies to proBide nearly -A000 free in9home charging
stations for some of the automakers first electric Behicle customersA under the Ford 1lue 6Bal
0harge 5oint 5rogram&
,-br%" ele$tr%$ *eh%$les
1%g .@!4 1or" Es$ape pl#g;%n h-br%"
<n 2004 both Ford and )oyota agreed on a patent sharing accord >hich granted Ford access to
certain hybrid technology patented by )oyotaA in e,change Ford licensed )oyota some of their o>n
patents&
Ford did improBe fuel efficiency during 200-A >ith the introduction of the 'ybrid97lectric 7scape&
.ith this BehicleA Ford >as third to the automotiBe market >ith a hybrid electric Behicle and the first
hybrid electric 3$: to market& )his >as also the first hybrid electric Behicle >ith a fle,ible
fuelcapability to run on 78-& )he 7scapes platform mate Mercury Mariner >as also aBailable >ith
the hybrid9electric system in the 2006 model yearSa full year ahead of schedule& )he similar Ma;da
)ribute >ill also receiBe a hybrid9electric po>ertrain optionA along >ith many other Behicles in the
Ford Behicle line&
<n 200- Ford announced its goal to make 2-0A000 hybrids a year by 2010A but by mid 92006
announced that it >ould not meet that goalA due to e,cessiBely high costs and the lack of sufficient
supplies of the hybrid9electric batteries and driBetrain system components& <nsteadA Ford has
committed to accelerating deBelopment of ne,t9generation hybrid9electric po>er plants in 1ritainA in
collaboration >ith :olBo& )his engineering study is e,pected to yield more than 100 ne> hybrid 9
electric Behicle models and deriBatiBes& )here are also plans for hybrid Bersions of the Ford 7dge
and /incoln MDT&
Ford announced on 200790790* that it >ill team up >ith 3outhern 0alifornia 7dison ?307@ to
e,amine the future of plug9in hybrids in terms of ho> home and Behicle energy systems >ill >ork
>ith the electrical grid& $nder the multi9million9dollarA multi9year pro=ectA Ford >ill conBert a
demonstration fleet ofFord 7scape 'ybrids into plug9in hybridsA and 307 >ill eBaluate ho> the
Behicles might interact >ith the home and the utilitys electrical grid& 3ome of the Behicles >ill be
eBaluated Jin typical customer settingsJA according to Ford&
6n Cune 12A 2008 $3%67 e,panded its o>n fleet of alternatiBe fuel and adBanced technology
Behicles >ith the addition of a Ford 7scape 5lug9<n 'ybrid Fle,9Fuel :ehicle& )he Behicle is
eEuipped >ith a 109kilo>att ?13 hp@ lithium9ion battery supplied by Cohnson 0ontrols93aft that
stores enough electric energy to driBe up to 30 miles ?48 km@ at speeds of up to 40 mph ?64 kmOh@&
<n March 200* Ford launched to the $&3& market the Ford Fusion 'ybrid and the Mercury Milan
'ybridA both as 2010 models&
Ford is going to introduce a plug9in hybrid to challenge the 0heBy :olt by 2012 and more charge9
maintaining hybrids ?traditional gas9electric hybrids@A beginning >ith one in 2011&
0urrent and planned Ford hybrid electric Behicles include the Ford 7scape 'ybrid ?2004N
present@A Mercury Mariner ?2006Npresent@A Ford Fusion 'ybridOMercury Milan ?200*Npresent@
and Ford 7dgeO/incoln MDT ?200*O10Npresent@
Mar0et share f%g#res for &??4 to F!! are for the f#ll !& months@
Carma0er &?!! &?!? &??5 &??4
GM 1*&4K 18&8K 1*&7K 22&1K
1ORD 16&-K 16&4K 1-&3K 14&2K
TO7OTA 12&6K 1-&2K 17&0K 16&7K
C,R7SLER 10&-K *&2K 8&8K 10&8K
,ONDA *&7K 10&6K 11&1K 10&8K
So#r$eG a#toma0ers
Top !? b- man#fa$tor total e#ropen mar0et
1& :"+ 23&7K ?"udiO:.O3kodaO3eat@
2& 53" +roup 11&7K ?5eugeotO0itroen@
3& 8enault +roup 10&7K ?8enaultO%acia@
4& +M +roup 8&2K ?6pelO:au,hallO0heBrolet@
/@ 1or" 3@3H
6& Fiat +roup 6&3K ?FiatOFerrariO"lfa
8omeoOMaseratiO/anciaO0hryslerOCeep etc@
7& 1M. +roup 6&2K ?1M.OMini@
8& %aimler +roup -&2K ?MercedesOsmart@
*& )oyota +roup 4&2K ?)oyotaO/e,us@
10& 2issan 3&3K
Top!? b- bran"
1& :. 12&6K
2& 8enault 8&3K
+@ 1or" 3@3H
4& 6pelO:au,hall 6&*K
-& 5eugeot 6&1K
6& 0itroen -&6K
7& "udi -&4K
8& 1M. 4&*K
*& Mercedes 4&6K
10& Fiat 4&-K
11& )oyota 3&*K
12& 3koda 3&6K
13& 2issan 3&3K
Strengths An" Opport#n%t%es
.ithin the past yearA FordLs reputation has been plagued by e,tensiBe recalls& U.hen you haBe threeA
four or fiBe recallsA it creates doubts about the BehiclesAV said automotiBe analyst +reg 3alch o>&
1eyond this main internal issueA Ford has also endured e,ternal problems like the falling economy
and the 3ept& 11 attacksA forcing them to make internal changes to make up for slumping sales& 'ere
>e haBe proBided a list of internal strengths and >eaknessesA organi;ed by public or ma=or issueA that
focus on >hat the company has done internallyA either as a result of e,ternal issues or as common
procedure&
Co mm#n %t- Relat%on s G
Strengths
Ford has made numerous efforts to target the surrounding community& " breast cancer a>areness
campaign >as created in >hich celebrities are enlisted to tell ho> breast cancer has affected them&
)he company takes strides to protect the enBironment demonstrated by the deBelopment of an
electric Behicle and efforts to increase fuel efficiency& 3ince the 3ept& 11 attacks on "mericaA Ford
and its employees haBe made e,tensiBe donations and held fundraisers and eBents by Ford in
response&
E m p lo- e e R e lat%o n s G
Ford proBides incentiBes for employees to >ork at high Euality leBels& For e,ampleA the U)humbieV
a>ard is giBen to employees >ho demonstrate a high personal commitment to their customers and
community& 'igher >ages are also characteristic of the company& 'ourly >orkers typically haBe
>ages from #1*9#26 an hourA >hile skilled trade >orkers make #219#30 an hour& For the last 20
yearsA Ford has issued no inBoluntary layoffs or dismissals of salaried employeesA although this year
may be an e,ception& )he company also created a Family 3erBice and /earning 0enter program for
Ford >orkersA family members and retireesA offering health classesA after9school tutoring and trips
for seniors&
n * e stor R e lat%o n s G
Ford maintains a high leBel of communication >ith its inBestors and potential inBestors& )he
company accurately and honestly reports earnings and losses in >ays easily accessible by the public
Bia company .eb siteA mailingsA and print materials by reEuest&
Opport#n%t%esG
Ford and the entire auto industry are currently challenged >ith the perfect storm&W)he auto industry
is being hit by a >eak $3 and global economyA rising fuel pricesAand social and political enBironmental
concerns and issues& <n order to oBercomethese potential threatA Ford should consider mass
producing a range of alternatiBefuelled Behicles ?dieselA fuel cellA electricA and hybrid@& "s
emerging markets deBelopthey >ill increase their use of oil products creating eBen greater demand
and increasedprices& 0ouple this issue >ith social and political concerns regarding global
>armingAand the eBer increasing state regulations regarding emissionsA >ill create a potentialhuge
customer demand for these alternatiBe Behicles& 5otential opportunities identified for Ford are related
to the future demand of the alternatiBe Behicles and increased global market share potential from
emerging markets& 1ut first Ford needs to turn current internal >eaknesses into strengths to achieBe
the e,ternal opportunities& FordL s internal >eaknesses are the large legacycosts in eEuipmentA
facilitiesA and retireesA that all need to be addressed to compete >ith relatiBely speaking ne>
companies like )oyotaA and 'onda& %ue to the sesignificant legacy costsA Ford has increased the
cost per Behicle to incorporate the additional cost into the price of their Behicles& "nother
>eakness for Ford is that
because they are so large it takes much longer to roll out ne> BehiclesA and in addition Ford has too
many similar Behicles that need to be reduced& For e,ampleA Ford hassimilar products in MercuryA and
Ford& Ford needs to reduce more structural and operational costs as they haBe started three years
ago by eliminating product redundancyA labour costA remoBing Behicle platformsA and making each
brand uniEuein its o>n >ay& "lthough >eak in these areasA Ford is positioned to take adBantage
of the identifiedstrategic imperatiBes& Ford already has a global presence and is diligently >orking
toe,pand in the emerging markets& )he 7uropeanA /atin9"mericanA <ndiaA and "sianmarkets are
more receptiBe to the smaller Behicles that Ford >ill need to begin toproduce& 1y deBeloping and
producing alternatiBe BehiclesA Ford can begin toeliminate brands and platforms that are not selling&
Ford can use the cost saBings to further inBest in the deBelopment and production of alternatiBe
Behicles& 'o>eBerA Ford cantake adBantage of opportunities that occur from the result of trends and
forces that >ill reshape Ford& )hree industry trends and forces that are most critical to
Fordcurrently are economicA ecologicalA and competitiBe& )he economic do>nturn thenbegins to
feed on fear from the consumersA and self9fulfilling prophecies& 0ompanies continue to do>nsi;e
due to lack of productionA and as people lose their =obs they lose their ability to purchase goods& )he
change to alternatiBe Behicles >ill take a skilled >orkforce that should proBide =obsA along >ith
=ob creation necessary to build thereEuired infrastructure for the alternatiBe Behicles& Ford has an
opportunity to gain ne> customers by proBiding the ne> Ford foreign >orkers >ith incentiBes to buy
FordA as 'enry Ford already did >ith the Ford ) model& " company can significantly damageits
public image that greatly impact sales by doing something harmful to the enBironment& For the auto
industry this means deBeloping alternatiBe fuel BehiclesAlike fuel cellA electricA and hybrid
Behicles& Ford needs to capture the consumer momentum for alternatiBe BehiclesA and the political
pressures regarding emissions to produce and market alternatiBe Behicles&
C,APTER;';ROAD6LOCKS AND 1EAS6LE SOLUTONS
Poor f %n an $%al res# lts
Roa"blo$0s
8egistered a loss of #14&6bn in 2006A the>orst annual result in10- years&
, %gh *olat%l%t-
of ra> materials increased costs of innoBations&
Data loss
/o> protection against data loss&
E m p lo- e e R e lat%o n s G
Ford is using a UBoluntary separation programV to lay off employeesA and plans amount to the
elimination of about 10 percent of FordLs salaried >orkforce in 2orth "merica ?4A0009-A000
>orkers@& "ccording to >orkers at FordLs >orld headEuarters in %earbornA MichiganA no one kne>
anything about the =ob cuts until an announcement >as made on the radioA although people had been
e,pecting layoffs&
" plan to cut all oBertimeA e,cluding plants mandated by union contracts or plants producing a
highly popular productA has also been enforced& "t the end of 3ept 2001A three Ford assembly plants
>ere >orking scheduled oBertime& /ast yearA and into spring 2001A ten plants >ere >orking
scheduled oBertime&
C # stom e r R e lat%o n s G
Ford has recalled almost t>o million Behicles in 2001A >ith the Firestone tire recalls alone costing
the company more than #3 billion& 1ecause such safety precautions are necessaryA customers
currently haBe little confidence in Ford products& )he company notifies o>ners of recalls Bia first9
class mailA but this >ill not protect customers >ith unsafe Behicles from harm&
/isted in the annual report are a number of >ays Ford targets their customers& )he company
proBides a 0ustomer <nsight 0enter to train employees to respond to the needs of customersA interact
>ith customers at race eBentsA and talk >ith customers Uface9to9face at auto sho>s and at
dealerships&V Ford does nothing else to sho> their customers ho> important they really are&
Challenges
.ith the kno>ledge of the safety issues surrounding Firestone tires on Ford 7,plorersA consumers
haBe been scared to purchase Ford Behicles& 0ustomers haBe become critical of FordLs aging
products and instead are buying cars and trucks made by foreign competitorsA as >ell as those of
+eneral Motors& )he recession and the >ar discourage people from inBesting in the lu,ury of ne>
carsA thus FordLs appeal has lessened significantlyA threatening the entire company&
0urrent layoffs due to lo>er production leBels >ill continue to raise concerns among employees
about their =ob security& /ayoffs are also eminent because of the loss of reBenue due to Firestone tire
recalls and recalls on millions of other BehiclesA la>suits surrounding the casesA and the recessio n&
/ike most companies facing a challenging marketA Ford >ill haBe a tough time pleasing inBestors&
"lsoA FordLs publics currently Euestion the oBerall reputation of the companyA especially concerning
safety issuesA >hich can deBalue Ford stock& )he increase of global market presence from other
automobile companies >ill cause Ford to lose market share in the automobile industry&
1eas%ble Sol#t%ons
Ford is successful >hen it sells cars& )hereforeA appealing to our customers and potential customers
is the most important factor in reaching the short9term goal of selling more cars& "s a resultA
inBestors >ill see a greater returnS>hich makes them happy& 7mployees >ill feel more secure in
their =obsA because FordLs productiBity >ill increase&
Strateg-G )o create the U0hanging the Face of FordV campaign to replace FordLs current damaged
reputation >ith a ne>A positiBe image& <dentify .illiam 0lay Ford as the ne> face emphasi;ing
change >ithin the company >hile maintaining the companyLs founding ideals&
Ta$t%$sG
Ford >ill establish a =oint team >ith members of Firestone and an independent research firm
to reeBaluate the manufacturing process to ensure that only safe Behicles leaBe the plants&
0onduct surBeys and focus groups >ith seBeral thousand Ford o>ners to determine customer
satisfaction and concerns&
5romote hotlines and online help serBices to ans>er Euestions regarding recalls and changes
>ithin the company&
.hen the research is completeA hold a nationally teleBised forum in %etroit& )his forumA
facilitated by the ne> 076A >ill unBeil the research and ans>er any Euestions or concerns&
0reate t>o series of commercialsA one featuring the ne> 076 in association >ith the
U0hanging the Face of FordV campaignA and the other emphasi;ing the patriotic spiri t of the
countryA promoting cars that are redA >hiteA and blue&
8enoBate the Ford&com .eb site to make it user9friendlyA enticing and direct& <nclude all
components of the U0hanging the Face of FordV campaignA as >ell as a UFord 4earbookAV
introducing the changes in high9leBel management&
<nstitute a policy that features a free car >ash and a free "merican flag to any Ford o>ner
>ho returns to their dealership for a check up&
"ssign Ford officials to contactOBisit the Bictims and their families to accept responsibility for
the faulty BehiclesA and offer condolences and compensation&
C,APTER;';1UTURE PROEECTONS
1or" Motors 1#t#re Plans
The Wa- 1orDar"I
X 1a$tor%esG 3eBen plantsA including .i,om assembly ?/incoln /3A e, 9)91ird@A 3t&
/ouis
?7,plorerOMountaineerO"Biator@A "tlanta ?)aurusA 3able@A and seBen additional facilities&
X EobsG 2-A000 to 30A000 plant >orkers by 2012F 4000 >hite9collar >orkersF 12 percent of
company officers&
X CostsG Material cost reductions of at least #6 billion&
X Pr%$esG J.ell bring sticker prices more in line >ith actual transaction prices and cap cash on the
hood rebates as >e introduce ne> cars and trucks into the marketplace&J
Ford Motor 0ompany 5resident and CEO Alan M#lall- reBealed the ne> Ford FigoA the anticipated
ne> car to be produced in <ndia and targeted at the <ndia and e,port market& Ford said that M
ulallyLs Bisit for the reBeal underscores the strategic importance of <ndia in FordLs future plans&
)he ne> Ford Figo >ill be manufactured at FordLs e,panded integrated manufacturing facility near
0hennaiA >hich is undergoing a #-00 million transformation to become a regional center of
e,cellence for Ford small car production& ?7arlier post&@ )he inBestment is doubling production
capacity to 200A000 units per year&
Ford Figo is designed and engineered to compete in <ndiaLs small car segmentA >hich accounts for
more than 70K of the ne> Behicle market& <t leBerages FordLs small9car platform architectureA
sharing underlying technology >ith the Ford Fiesta&
Ford said that is >ill proBide further details about the Behicle closer to its production launch&
Ch%na eBpans%on@ 3eparatelyA Ford announced that its =oint Benture >ith 0hangan in 0hinaS
0hangan Ford Ma;da "utomobile ?0FM"@Sis building a ne>A manufacturing facility in
0hongEingA scheduled for completion in 2012&
)he inBestmentA Balued at #4*0 million ?8M1 3&34 billion@A represents a significant step in FordLs
continuing e,pansion strategy in the "sia 5acific and "frica region& )he ne> plant initially >ill be
capable of producing 1-0A000 units a yearA boosting total annual production capacity at 0FM"
operations to 600A000 units by 2012&
)he highly fle,ible 19million9sEuare9meter manufacturing facility begins production of FordLs ne,t9
generation Ford Focus in 2012 and >ill be capable of producing a diBersified range of products in
the future&
)he ne> plantSFordLs second in 0hongEing and third in 0hina under its 0FM" =oint BentureS>ill
be located in 0hongEingLs 2e> 2orth Mone industrial comple,&
)he ne,t9generation FocusA scheduled to debut at the 2orth "merican <nternational "uto 3ho> in
%etroitA >ill be built on the companyLs ne> global 09car platform& )he ne> platform >ill be the
basis for Behicles sold in all regions >ith total global sales e,pected to e,ceed 2 million units
annually by 2012&
)he ne> global 09car platform ultimately >ill underpin up to 10 uniEue modelsA fulfilling the global
demands for a Bariety of 09segment Behicles& )he 09segment is currently the largest global segment&
1y 2013A 09segment Behicles are pro=ected to account for nearly 28K of global sales&
<n addition to the car manufacturing plant already operational in 0hongEingS>here the FocusA
Mondeo and 39M"T are builtSthe Ford90hangan the =oint Benture has a manufacturing facility in
2an=ingA 0hinaA >here the ne>A global Ford Fiesta is built& 3upporting these assembly facilities is
the 0hangan Ford Ma;da 7ngine 0ompany ?0FM7@ =oint Benture in 2an=ing!mashFone of the
largest engine manufacturing facilities in 0hina >ith an annual production capacity of 3-0A000 units&
Ford plans to introduce its 7co1oost engine technology in 0hina ne,t yearA as >ell as other fuel 9
efficient technologiesA such as our 5o>er3hift transmission& FordLs 7co1oost engines combine
turbocharging and direct9in=ection technology to deliBer fuel consumption and 06
2
emissions
reduction of up to 20K Bersus conBentionalA larger9displacement gasoline engines >ith similar
po>er output& 1y 2013A Ford >ill be producing 1&3 million 7co1oost engines annually on a global
basis for application across a >ide array of Behicles from small cars to light trucks&
)he companyLs ne> 5o>er3hift transmission technology >ill deliBer the fuel efficiency of a manual
gearbo, >ith the conBenience and ease of a premium automatic transmissionA making it one of the
key technologies for FordLs global small car platforms& Ford has committed that nearly all of its
transmissions >ill be si,9speed gearbo,es by 2013&
FordLs other partner in 0hinaA Ciangling Motors 0orporation in 2anchangA produces commercial
BehiclesA including the Ford )ransitA one of the best sellers in 0hinaLs high 9end light commercial Ban
segment
C,APTER;';CONCLUSONS O1 T,E STUD7
Ford Motor 0ompany is indeed a great company because it not only offered an alternatiBe >ay of
transportationA it offered =obs of eEual opportunity in the early 1*00s up until no> ?Ford Motor
0ompany 21-9221@& Ford Motor 0ompany helped the economy and a lot of familiesF it also is a Bery
historic corporation& My personal definition of Uhistoric corporationV is consistent success for a long
period of time& From 1*1* to 1*** Ford has earned #162&-- billion dollars in salesA has encountered
oBer 364A--0 employees and has earned stock e,changes in 2e> 4orkA 1ostonA the 5acific Mid>estA
)orontoA Montreal and /ondon ?Ford Motor 0ompany 21-9221@& 2o one could haBe made the
company more successful than Euite possibly the greatest businessman of all timeF 'enry Ford&
'enry Ford >as indeed a great businessman& 'e enBisioned himself being one of the great
businessmen of all timeA or rather Uthe father 20th 0entury "merican <ndustryV & 'e >as curious
about engineering and became one himself& 'e liBed through propaganda and refused to eBer
consider himself >rong& 'e did haBe his mistakesA and people are Bery critical about his feeling
to>ards Ce>ish people& 3tillA in the >orld of businessA he simply made Ford one of the most popular
names kno>n >orld>ide& 'e >orked in a time period >here one 076 could easily dominate the
industry&
"merican history is something that >e take pride in and that 'enry Ford created something that is
>ritten in millions of history books&
< simply >ant the people to take this information and think about >hat Mr& Ford gaBe us and ho>
he did it& <t is unrealistic to become >hat he has todayF he came from a time >here a 076 could
dominate the industry& Ford kne> that business had to be localA he pushed the goBernment for roadsA
he helped create a middle classA and he eBen made ciBilians flock to %etroit >ith a dream that one
day they could >ork for 'enry Ford& 2o>A eBen the smartest people in the >orld could not
accomplish >hat he did& < think < haBe a great topic and < really hope that people >alk out of the
presentation >ith a lot of ne> interesting information
C,APTER;';PRO1ESSON OUTCOME
<n my opinion ford motors is a Bery good companyA famous all oBer the >orld &<t is the >orld 3
rd
largest company& <n 2010A Ford earned a net profit of #6&6 billion and reduced its debt from
#33&6 billion to #14&- billion lo>ering interest payments by #1 billion follo>ing its 200* net profit
of #2&7 billion& <n the $&3&A the F93eries >as the best9selling Behicle for 2010& Ford sold -28A34* F9
3eries trucks during the yearA a 27&7K increase oBer 200*A out of a total sales of 1&* million BehiclesA
or eBery one out of four Behicles Ford sold& )rucks sales accounts for a big slice of Fords profitsA
according to $3" )oday& Fords realignment also included the sale of its >holly o>ned
subsidiaryA 'ert; 8ent9a90ar to a priBate eEuity group for #1- billion in cash and debt acEuisition&"
-0N-0 =oint Benture >ith Mahindra ! Mahindra of <ndiaA called Mahindra Ford <ndiaA /imited
?M<F/@A ended >ith Ford buying out Mahindras remaining stake in the company in 200-& Ford had
preBiously upped its stake to 72K in 1**8&
Ford has manufacturing operations >orld>ideA including in the $nited 3tatesA 0anadaA Me,icoA
0hinaA the $nited DingdomA +ermanyA )urkeyA 1ra;ilA "rgentinaA "ustralia and 3outh "frica& Ford
also has a cooperatiBe agreement >ith 8ussian automaker +"M&
66LOGRAP,
7
Webs%tes
!@ >>>&ford & c o m O
&@ >>>&m anonam ission&blogspot&com O200-O04Ofords 9f9m ission 9statem ent&htm l
+@ >>>&india&ford& com O
.@ >>>& m otortr e nd& c o m Ofe a tur e sO a utoYn e >sO2011O 1 202YuYsY m a rk e tsYsh a r e Y forYth e Yto
pYfiBeYautom ake rsO
/@ >>>&b e s t 9s e lli n g 9c a rs& c o m Oe urop e O201 1 9ful l 9 y e a r9 b e s t 9s e lling 9 ca r 9m a nu f ac t ur e rs 9
and 9brands 9in 9europ eO
6oo0s
!@ Ford motors annual book&