Ford Motor Overview

Ford Motor

Introduction

Ford Motor Co. (Ford) is an automaker that offers a full line of passenger cars, trucks, SUVs and electric vehicles. The company provides automobile financing and leasing services. Ford markets products under the Lincoln and Ford brand names and the territories it serves include Africa, Asia Pacific, Europe, the Middle East, South America and the Middle East. The company owns and operates the transmission, assembly, foundry, metal stamping, engine and other component plants worldwide. In addition, the company operates development centres, manufacturing facilities, parts distribution centres and assembly facilities around the world. Ford is headquartered in Dearborn, Michigan, USA.

Brief History of Ford Motor

In 1896, Henry Ford built the prototype automobile in his workshop behind his home in Detroit. The first Ford automobile, the original Model A, was assembled at his Mack Avenue plant in July 1903 after the incorporation of his Ford Motor Company.

Five years later, in 1908, the highly popular Model T was introduced. Ford had to develop new mass production techniques to meet the high demand for this car. The company’s first overseas manufacturing facility opened in 1911 in Manchester, England. In 1913 he unveiled the first mobile assembly line for automobiles, and in 1914 he introduced a wage of $5 for an eight-hour day (instead of $2.34 for a nine-hour day). to further increase labour productivity. The price of a Model T touring car went from $850 in 1908 (equivalent to about 18 months of average wages) to It dropped to under $300.

In 1908, the company’s first overseas office was established in Paris. By mid-1914, he had over 500,000 Model Ts on the road worldwide, and by 1923 Ford was producing more than half of all automobiles in the country. By the late 1920s, Ford had over 20 overseas assembly plants in countries all over the world. With 15 million units of his T model produced, Ford has become the most recognizable car brand in the world. The last Model T and the first all-new Model A were built in 1927, and the first Ford V-8 was built in 1932. In 1922, Ford purchased the Lincoln and Continental luxury cars manufactured by the Lincoln Motor Company, founded in 1917. Ford introduced the first Mercury in 1938. This was a vehicle priced between Ford and Lincoln.

Ford’s Business Expansion

Henry Ford owned 58.5% of the company’s share capital in 1906 and bought out other shareholders when they opposed plans to build a huge (and expensive) River Rouge factory in Dearborn. did. Edsel Ford (1893–1943) then became president of the company (1919). Ford Motor Company ceased production of automobiles for the general public in 1942 and concentrated on producing vehicles, planes, and tanks for the U.S. military.

After Edsel died in 1943, Henry Ford resumed his presidency but was succeeded by his grandson Henry Ford II in 1945. He briefly served as president of Ford until he resigned as Secretary of Defense in 1961. Models such as the Thunderbird (1954) and Mustang were introduced by the company headed by Henry Ford II (1964). But amid these victories came the disastrous introduction of the Edsel (1958 to his 1960 model). This was so unfavourable that “Edsel” became a slang word for the debacle. As Chairman and Chief Executive Officer (1945-1970), Henry Ford II led the business (1960-80).

By the 1990s, the Ford Motor Company turned its attention back to the automotive business and financial services after some limited diversification attempts in the 1950s and 1960s, including the acquisition of the electronics company Philco in 1961. Ford bought the British luxury car maker Jaguar in 1989 or 1990. In 1993 Aston He Martin became a wholly owned subsidiary. Subsequent acquisitions include the Hertz Corporation car rental company in 1994, the Volvo Automotive division in 1999, and the Land Rover line of sport utility vehicles (SUVs) in 2000. In addition, Ford has invested heavily in Mazda.

However, Ford started selling these brands because it was struggling in the early 21st century. In 2005 Ford sold Hertz and in 2007 Aston he sold Martin. In 2008, it sold Jaguar and Land Rover to India’s Tata Motors. Ford began selling his Mazda stake in 2008 and by 2015 had completely sold all of his holdings.

Ford’s Changes in the 21st Century

To save the nation’s faltering auto sector, U.S. President George W. Bush launched an urgent financial rescue plan in December 2008 to help the “Big Three” manufacturers, Chrysler LLC, General Motors Corporation, and Ford. The Troubled Asset Relief Program (TARP), a $700 billion fund authorized by Congress to assist the banking sector in the wake of the subprime mortgage crisis, made $13.4 billion in government loans immediately available.

The loans would enable the automakers to maintain operations until March 2009, after which they would have to prove their “financial viability” or pay back the funds. The corporations were also compelled to go through restructuring. Initial recipients of the funds were General Motors and Chrysler. According to reports, Ford had enough money to keep running its business and did not immediately need assistance from the government.

Ford’s sales and market share increased in 2009 as it managed to avoid bankruptcies that saw both General Motors and Chrysler file for bankruptcy. The federal government’s “Cash-for-Clunkers” program offered consumers up to $4,500 to replace their old car with a new, more fuel-efficient one. Ford also implemented several cost-cutting strategies and emphasized stronger branding. Volvo was sold by the automaker to China’s Zhejiang Geely Holding in 2010.

Ford decided to end the Mercury line many months later. But when sales slowed, the manufacturer sought to diversify its offering. Ford Smart Mobility was founded in 2016 to develop projects such as self-driving cars and car-sharing companies. The company announced an expansion of its range of electric vehicles the following year. But Ford said he will phase out all passenger cars in 2018, except the Mustang and Ford Focus Active. Instead, the company planned to focus on pickup trucks, SUVs, and crossovers (Ford’s F-Series pickups were America’s best-selling cars in the late 20th and early 21st centuries).

Ford’s Operations

Ford has operating companies in nearly all parts of the world including the US, Mexico, Africa, Europe, Asia, etc. Let’s take a look at some of its operations in some of these parts.

Asia

Ford established its first joint venture producing passenger vehicles in China in 2001, over 10 years after Volkswagen and six years after General motors. It spent $4.9 billion in 2013 to increase its range and double China’s manufacturing capability to 600,000 automobiles. This includes the biggest-ever Ford plant complex in the city of Chongqing in the southwest. According to consultancy LMC Automotive, Ford held 2.5percent of the Chinese market in 2013, while Volkswagen held 14.5% and GM had 15.6%. In China, GM outsells Ford by more than six to one. Ford has historically had a much lesser presence in Asia, limited to Taiwan, where Ford has had a partnership with Lio Ho since the 1970s, as well as some other Asian countries.

The factory is still in operation today and is located in the Sriracha district of the Bowin district of Chonburi. Built-in 1941, the Singapore factory was quickly occupied by the Japanese during the war and became the site of Britain’s surrender to the Japanese. The manufacturing site is now designated as a National Monument of Singapore. Ford Motor Co. introduced a range of passenger cars and trucks in Myanmar on April 30, 2013. High import fees previously made it difficult to buy imported cars in Myanmar, but the currency reform, lifting of previous import restrictions and the abolition of shadow currency have resulted in increased demand for cars.

Africa

Ford’s market position in Africa has historically remained greatest in South Africa and its neighbouring nations, with just trucks being marketed in other parts of the world. In the beginning, Ford in South Africa imported kits from Canada to be put together at its facility in Port Elizabeth; later, the company sourced its designs from the United Kingdom and Australia. Local editions of the Ford Cortina include the XR6, which has a 3.0 V6 engine, and a Cortina-based “bakkie” or pick-up, which has been shipped to the United Kingdom. Ford and a competing business owned by Anglo-Americans amalgamated in the middle of the 1980s to create Samcor.

After the world condemned apartheid, Ford pulled out of South Africa in 1988 and sold its shares in Samcore while giving the company a license to use the Ford name. Samcor also started producing Mazdas, influencing its product range, replacing European Fords such as the Escort and Sierra, with the Mazda-based Laser and Telstar. After the end of apartheid in 1994, Ford acquired his 45% stake in Samcor, which later became a wholly owned subsidiary, of Ford Motor Company of Southern Africa. Ford currently offers local sedan versions of the Focus and Fiesta, which are also produced in India and Mexico.

Conclusion

Ford continues to remain one of the best car manufacturers even till tomorrow. They not only settled down in producing luxury cars, but went ahead to trucks, sports cars, and now even electronic cars. Their business continues to grow most especially because of the quality products that they manufacture.