Introduction
Introduction
Introduction
Introduction
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History
The Ford Motor Company was launched in a converted factory in 1903 with
$28,000 in cash from twelve investors, most notably John and Horace (who
would later found their own car company). Henry's first attempt under his name
was the Henry Ford Company on November 3, 1901, which became
the Cadillac Motor Company on August 22, 1902. During its early years, the
company produced just a few cars a day at its factory on Mack Avenue
in Detroit, Michigan. Groups of two or three men worked on each car from
components made to order by other companies. Henry Ford was 40 years old
when he founded the Ford Motor Company, which would go on to become one
of the world's largest and most profitable companies, as well as being one to
survive the Great Depression. As one of the largest family-controlled companies
in the world, the Ford Motor Company has been in continuous family control
for over 100 years.
Corporate Governance
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Members of the board as of early 2007 are: Chief Sir John Bond, Richard
Manoogian, Stephen Butler, Ellen Marram, Kimberly Casiano, Alan
Mulally (President and CEO), Edsel Ford II, Homer Neal, William Clay Ford
Jr., Jorma Ollila, Irvine Hockaday Jr., John L. Thornton, and William Clay
Ford (Director Emeritus).
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During the mid to late 1990s, Ford sold large numbers of vehicles, in a booming
American economy with soaring stock market and low fuel prices. With the
dawn of the new century, legacy healthcare costs, higher fuel prices, and a
faltering economy led to falling market shares, declining sales, and sliding
profit margins. Most of the corporate profits came from financing consumer
automobile loans through Ford Motor Credit Company.
By 2005, corporate bond rating agencies had downgraded the bonds of both
Ford and GM to junk status, citing high U.S. health care costs for an aging
workforce, soaring gasoline prices, eroding market share, and dependence on
declining SUV sales for revenues. Profit margins decreased on large vehicles
due to increased "incentives" (in the form of rebates or low interest financing) to
offset declining demand.
In the face of demand for higher fuel efficiency and falling sales of minivans,
Ford moved to introduce a range of new vehicles, including "Crossover SUVs"
built on unibody car platforms, rather than more body-on-frame chassis. In
developing the hybrid electric powertrain technologies for the Ford Escape
Hybrid SUV, Ford licensed similar Toyota hybrid technologies to avoid patent
infringements. Ford announced that it will team up with electricity supply
company Southern California Edison (SCE) to examine the future of plug-in
hybrids in terms of how home and vehicle energy systems will work with the
electrical grid. Under the multi-million-dollar, multi-year project, Ford will
convert a demonstration fleet of Ford Escape Hybrids into plug-in hybrids, and
SCE will evaluate how the vehicles might interact with the home and the
utility's electrical grid. Some of the vehicles will be evaluated "in typical
customer settings," according to Ford.
In December 2006, the company raised its borrowing capacity to about $25
billion, placing substantially all corporate assets as collateral to secure the line
of credit. Chairman Bill Ford has stated that "bankruptcy is not an option". In
order to control its skyrocketing labor costs (the most expensive in the world),
the company and the United Auto Workers, representing approximately 46,000
hourly workers in North America, agreed to a historic contract settlement in
November 2007 giving the company a substantial break in terms of its ongoing
retiree health care costs and other economic issues. The agreement includes the
establishment of a company-funded, independently run Voluntary Employee
Beneficiary Association (more commonly known as a VEBA) trust to shift the
burden of retiree health care from the company's books, thereby improving its
balance sheet. This arrangement took effect on January 1, 2010. As a sign of its
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currently strong cash position, Ford contributed its entire current liability
(estimated at approximately USD$5.5 Billion as of December 31, 2009) to the
VEBA in cash, and also pre-paid USD$500 Million of its future liabilities to the
fund. The agreement also gives hourly workers the job security they were
seeking by having the company commits to substantial investments in most of
its factories.
The automaker reported the largest annual loss in company history in 2006 of
$12.7 billion,[23] and estimated that it would not return to profitability until 2009.
[24]
However, Ford surprised Wall Street in the second quarter of 2007 by
posting a $750 million profit. Despite the gains, the company finished the year
with a $2.7 billion loss, largely attributed to finance restructuring at Volvo.[25]
On June 2, 2008, Ford sold its Jaguar and Land Rover operations to Tata
Motors for $2.3 billion.[26][27]
In January 2008, Ford launched a website listing the ten Built Ford Tough rules
as well as a series of webisodes that parodied the show COPS (TV Series).
During November 2008, Ford, together with Chrysler and General Motors,
sought financial aid at Congressional hearings in Washington D.C. in the face of
worsening conditions caused by theautomotive industry crisis. The three
companies presented action plans for the sustainability of the industry.[28] The
Detroit based automakers were unsuccessful at obtaining assistance through
Congressional legislation. GM and Chrysler later received assistance through
the Executive Branch from the T.A.R.P. funding provisions. On December 19,
the cost of credit default swaps to insure the debt of Ford was 68 percent the
sum insured for five years in addition to annual payments of 5 percent. That
means it costs $6.8 million paid upfront to insure $10 million in debt, in
addition to payments of $500,000 per year. In January 2009, Ford announced a
$14.6 billion loss in the preceding year, making 2008 its worst year in history.
Still, the company claimed to have sufficient liquidity to fund its business plans
and thus, did not ask for government aid. Through April 2009, Ford's strategy of
debt for equity exchanges, erased $9.9 B in liabilities (28% of its total), in order
to leverage its cash position. These actions yielded Ford a $2.7 billion profit in
fiscal year 2009, the company's first full-year profit in four years.
In the latter half of 2005, Chairman Bill Ford asked newly appointed Ford
Americas Division President Mark Fields to develop a plan to return the
company to profitability. Fields previewed the Plan, dubbed The Way Forward,
at the December 7, 2005 board meeting of the company; and it was unveiled to
the public on January 23, 2006. "The Way Forward" includes resizing the
company to match current market realities, dropping some unprofitable and
inefficient models, consolidating production lines, and shutting fourteen
factories and cutting 30,000 jobs.
These cutbacks are consistent with Ford's roughly 25% decline in U.S.
automotive market share since the mid-late 1990s. Ford's target is to become
profitable again in 2009, a year later than projected.Ford's realignment also
includes the sale of its wholly owned subsidiary, Hertz Rent-a-Car to a private
equity group for $15 billion in cash and debt acquisition. The sale was
completed on December 22, 2005. A 50-50 joint venture with Mahindra and
Mahindra Limited of India, called Mahindra Ford India, Limited (MIFL), ended
with Ford buying out Mahindra's remaining stake in the company in 2005. Ford
had previously upped its stake to 72% in 1998.
Chairman and Chief Executive Officer Ford also became President of the
company in April 2006, with the retirement of Jim Padilla. Five months later, in
September, he stepped down as President and CEO, and naming Alan
Mulally as his successor. Bill Ford continues as Executive Chairman, along
with an executive operating committee made up of Mulally, Mark
Schulz, Lewis Booth, Don Leclair, and Mark Fields.
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used
1903-
Ford Global
present
1922-
Lincoln North America
present
Global Markets
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Initially, Ford Motor Company models sold outside the U.S. were essentially
versions of those sold on the home market, but later on, models specific to
Europe were developed and sold. Attempts to globalize the model line have
often failed, with Europe's Ford Mondeo selling poorly in the United States as
the Ford Contour, while U.S. models such as the Ford Taurus have fared poorly
in Japan and Australia, even when produced in right hand drive. The small
European model Ka, a hit in its home market, did not catch on in Japan, as it
was not available as an automatic. The Mondeo was dropped by Ford Australia,
because the segment of the market in which it competes had been in steady
decline, with buyers preferring the larger local model, the Falcon. One recent
exception is the European model of the Focus, which has sold strongly on both
sides of the Atlantic.
From 2003, Toyota outsold Ford Motor worldwide. From the second quarter
2006, Toyota has passed Ford as the #2 automaker, by sales, in the United
States.
Ford is in partnership talks to license hybrid technology from the Toyota Motor
Corporation in a deal that could help establish Toyota's system as a standard for
the industry.
Europe
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Ford Europe has broken new ground with a number of relatively futuristic car
launches over the last 50 years.
Its 1959 Anglia two-door saloon was one of the most quirky-looking small
family cars in Europe at the time of its launch, but buyers soon became
accustomed to its looks and it was hugely popular with British buyers in
particular. It was still selling well when replaced by the more practical Escort in
1967.
The third incarnation of the Ford Escort was launched in 1980 and marked the
company's move from rear-wheel drive saloons to front-wheel drive hatchbacks
in the small family car sector.
The fourth generation Escort was produced from 1990 until 2000, although its
successor - the Focus - had been on sale since 1998. On its launch, the Focus
was arguably the most dramatic-looking and fine-handling small family cars on
sale, and sold in huge volumes right up to the launch of the next generation
Focus at the end of 2004.
The 1982 Ford Sierra - replacement for the long-running and massively
popular Cortina and Taunus models - was a style-setter at the time of its launch.
Its ultramodern aerodynamic design was a world away from a boxy, sharp-
edged Cortina, and it was massively popular just about everywhere it was sold.
A series of updates kept it looking relatively fresh until it was replaced by the
front-wheel driveMondeo at the start of 1993.
The rise in popularity of small cars during the 1970s saw Ford enter the mini-
car market in 1976 with its Fiesta hatchback. Most of its production was
concentrated at Valencia in Spain, and the Fiesta sold in huge figures from the
very start. An update in 1983 and the launch of an all-new model in 1989
strengthened its position in the small car market.
Asia Pacific
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In New Zealand, the Ford Laser and Telstar were assembled alongside the
Mazda 323 and 626 until 1997, at the Vehicle Assemblers of New Zealand
(VANZ) plant in Wiri, Auckland. The Sierra wagon was also assembled in New
Zealand, owing to the popularity of station wagons in that market.
Through its relationship with Mazda, Ford also acquired a stake in South
Korean manufacturer Kia, which built the (Mazda-based) Ford Festiva from
1988–1993, and the Ford Aspire from 1994-1997 for export to the United
States, but later sold their interest to Hyundai (which also manufactured the
Ford Cortina until the 1980s). Kia continued to market the Aspire as the Kia
Avella, later replaced by the Rio and once again sold in the US.
Ford's presence in Asia has traditionally been much smaller, confined
to Malaysia, Singapore, Hong Kong, the Philippines, and Taiwan, where Ford
has had a joint venture with Lio Ho since the 1970s. Ford began assembly of
cars in Thailand in 1960, but withdrew from the country in 1976, and did not
return until 1995, when it formed a joint venture with Mazda called Auto
Alliance.
Ford India began production in 1998 with its Ford Escort model, which was
later replaced by locally produced Ford Ikon in 2001. It has since added Fusion,
Fiesta, Mondeo and Endeavour to its product line.
On 9 March 2010, Ford Motor Co. launched its first made-for-India compact
car. Starting at 349,900 ($7,690), the Figo is ford's first car designed and priced
for the mass Indian market.
South America
In South America, Ford has had to face protectionist government measures in
each country, with the result that it built different models in different countries,
without particular regard to rationalization oreconomy of scale inherent to
producing and sharing similar vehicles between the nations. In many cases, new
vehicles in a country were based on those of the other manufacturers it had
entered into production agreements with, or whose factories it had acquired. For
example, the Corcel and Del Rey in Brazil were originally based
on Renault vehicles.
In 1987, Ford of Brasil and Ford of Argentina merged its operations with those
of Volkswagen to form a company called Autolatina, with which it shared
models. Sales figures and profitability were disappointing, and Autolatina was
dissolved in 1995. With the advent of Mercosur, the regional common market,
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Ford was finally able to rationalize its product line-ups in those countries.
Consequently, the Ford Fiesta and Ford EcoSport are only built in Brazil, and
the Ford Focus only built in Argentina, with each plant exporting in large
volumes to the neighboring countries. Models like the Ford Mondeo from
Europe could now be imported completely built up. Ford of Brazil produces a
pick-up truck version of the Fiesta, the Courier, which is also produced in South
Africa as the Ford Bantam inright hand drive versions.
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sold in that country were Ford Crown Victorias. In 2004, Ford sold 30,000 units
in the region, falling far short of General Motors' 88,852 units and Nissan
Motors' 75,000 units.
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—or CNG. Some CNG vehicles have dual fuel tanks - one for gasoline, the
other for CNG - the same engine can operate on either fuel via a selector switch.
Flexible fuel vehicles
See also: Flexible fuel vehicle
Flexible fuel vehicles are designed to operate smoothly using a wide range of
available ethanol fuel mixtures—from pure gasoline, to bioethanol-gasoline
blends such as E85 (85% ethanol and 15% gasoline)
or E100 (neat hydrous ethanol) in Brazil. Part of the challenge of successful
marketing alternative and flexible fuel vehicles in the U.S., is the general lack of
establishment of sufficient fueling stations, which would be essential for these
vehicles to be attractive to a wide range of consumers. Significant efforts to
ramp up production and distribution of E85 fuels are underway and expanding.
Ford is also planning to produce 250,000 E85-capable vehicles a year in the US,
adding to some 1.6 million already sold in the last 10 years.
Current Ford E85 Flexible Fuel Vehicles sold in North America and Europe are:
Ford F-150
Ford Crown Victoria
Ford Focus
Ford C-MAX
Ford Mondeo
Ford S-MAX
Ford Galaxy
Ford Taurus
Ford Ranger
Ford Explorer
Ford Expedition and EL/Max
Mercury Grand Marquis
Lincoln Town Car
Courier
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Ford EcoSport
Ford Fiesta
Ford Focus
Ford Ka
Electric vehicles
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vehicles might interact with the home and the utility's electrical grid. Some of
the vehicles will be evaluated "in typical customer settings," according to Ford.
On June 12, 2008 USDOE expanded its own fleet of alternative fuel and
advanced technology vehicles with the addition of a Ford Escape Plug-In
Hybrid Flex-Fuel Vehicle. The vehicle is equipped with a 10-kilowatt (13
hp) lithium-ion battery supplied by Johnson Controls-Saft that stores enough
electric energy to drive up to 30 miles (48 km) at speeds of up to 40 mph (64
km/h).
In March 2009 Ford launched to the U.S. market the Ford Fusion Hybrid and
the Mercury Milan Hybrid, both as 2010 models.
Ford is going to introduce a plug-in hybrid challenge the Chevy Volt by 2012
and more charge-maintaining hybrids (traditional gas-electric hybrids),
beginning with one in 2011.
Current and planned Ford hybrid electric vehicles:
All-electric vehicles
Ford ended the Think City experiment and ordered all the cars repossessed and
destroyed, even as many of the people leasing them begged to be able to buy the
cars from Ford. After outcry from the lessees and activists in the US and
Norway, Ford returned the cars to Norway for sale.
Bill Ford was one of the first top industry executives to make regular use of
an battery electric vehicle, a Ford Ranger EV, while the company contracted
with theUnited States Postal Service to deliver electric postal vans based on the
Ranger EV platform..Ford discontinued a line of electric Ranger pickup
trucks and ordered them destroyed, though it reversed in January 2005, after
environmentalist protest.
The North American Focus has been modified to take batteries. The variant,
known as the Focus RV, is planned to be launched in 2011. Ford plans to have
10,000 of these battery-powered cars on the road beginning in 2011 in
partnership with Magna International and it will be a global vehicle that will be
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sold in the three key markets of North America, Europe and Asia-Pacific. The
Focus compact can travel about 160 kilometres before it needs to be charged.
Current and planned Ford hybrid electric vehicles:
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STUDENTS REPORT
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BILBOGRAPHY
www.google.com
www.wikipedia.org
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