This company is the American multinational automaker having headquartered in the Dearborn, Michigan, the suburb of Detroit. This was founded by the Henry ford and that has incorporated in the year of 1903 on the month of June 16. This company sells commercial vehicles and automobiles under ford brand and the luxury cars under Lincoln brand. In past it also has produced tractors, heavy trucks and the automotive components. Ford will own the small stakes in Aston martin and Mazda of Japan. This is listed on New York stock exchange & controlled by ford family even though they have the minority ownership.
Ford has introduced the methods for the manufacturing of cars in large scale and management of large scale of the industrial workforce using elaborately the engineered manufacturing sequences that typified by moving the assembly lines, by the year of 1914 these methods were first known around world as the Fordism. The ford’s former United Kingdom subsidiaries land rover and the Jaguar acquired in 1989 & 2000 respectively, was sold to the Tata motors on march, in the year of 2008.
Ford is the 2nd largest united state based automaker and fifth largest in world based on the 2010 vehicle sales. Ford was the 5th largest automaker in the Europe at the end of the year 2010. In the year 2010 ford is the 8th ranked overall company of American based.
The American based ford company is ranked eighth in fortune 500 list in the year 2010, based on 2009’s global revenues of 118.3 billion USD. Ford produced approximately 5.532 million automobiles in the year 2008 and at around 90 facilities and plants it employees about 213000 people.
History of ford
During 20th century
On the month of November 3rd in the year 1901, under his own name Henry Ford made his first attempt at a car company called Henry Ford Company, which became in the 1902’s August 22nd as the Cadillac Motor Company, with the rights of ford left to his name. With twelve investors cash of about 28000 USD in a converted factory the ford motor company was launched in the year 1903. The most notable investors were Horace and John Dodge, later who built their own car company. A day at Mack Avenue factory in Detroit, Michigan, only few cars were produced during the company’s early years. On each car a group of three or two men were worked, assembling the parts to the car, which were made by contracting supplier companies for Ford. Within a decade the world would be lead by the company in the refinement and expansion of the concept of assembly line, and soon in a vertical integration the ford brought part production in house that seemed a best path for the era.
When Henry ford founded the ford motor company he was just 39 years old, which would go on to become one of the most profitable and world’s largest company, as one being to survive the great depression. As one of the family controlled largest company in the world, for over 20 years in continuous control under family the ford motor company is running successfully.
In the model T the Ford introduced a removable cylinder head in its first engine which was introduced in the year 1908. The model A which was introduced in the year 1930, has come up with safety glass in the windshield. The low priced car which was powered by V8 engine was launched by ford in the year 1932.
Lifeguard safety packages were offered by ford from 1956, which included standard innovations such as optional front, deep dish steering wheel, and the first time introduced rear seatbelts and padded dash as an optional. Into its products the ford introduced door locks with child proof in 1957; on a mass it produced the first retractable six seater hardtop in the same year. The model Mustang was introduced in the year 1964 by ford. The reminder light for seat belt was featured first in the 1965 model of Ford.
In the 1980s around the world, several highly successful ford vehicles were introduced. Ford also acquired Aston Martin and Jaguar Cars in 1994 and 1990 respectively. During 1990s mid late, large vehicles were continued sell by Ford, in an American booming economy with low fuel prices and a soaring stock market.
With the new century’s dawn, higher fuel prices, faltering economy and legacy healthcare costs led market shares falling, diminished profit and declining sales margins. Through ford motor credit company, most of the profits of corporate came from automobile consumer loans.
The corporate bonds of both GM and ford had been graded down to the status of junk by2005, as a high result of costs of health care in US for a soaring price of gasoline, aging workforce, and more dependence on SUV’s declining sales, and eroding market share. The margins of profit on larger vehicles decreased due to the incentives increase to demand of offset’s decline. The chairman of the company bill ford in the 2005s latter half asked Mark Fields who is a newly appointed division president for ford Americas, in order to develop a plan for returning the profitability of company. The plan was previewed by field, and named it as the forward way at the company’s board meeting which held on the month of December 7th in 2005 and on 2006’s January 23rd it was launched to the public. The company is resized to the realities of market bi including the way forward, dropping some inefficient and unprofitable models, consolidating lines of production, cutting 30000 jobs by closing 14 numbers of factories.
The ford motors moved to introduce new range of vehicles, including the unibody car platform which is built on Crossover SUV, rather than the chassis of more body frame. In order to develop hybrid power train electric technologies for the Hybrid model of SUV Ford escape, the ford licensed technologies similar to Toyota Hybrid to avoid infringements of patent. The ford announced that it is going to tie up with southern California Edison which is an electric supply company to inspect the hybrids plug in of future in terms of how vehicle and the working of home energy systems with the grids of electric. Under the multi year’s multi million project, the ford escape hybrid’s demonstration fleet will be converted into hybrids plug in by ford. According to ford, in terms of “typical customer settings”, the evaluation of vehicles would be done.
Henry ford’s great grandson William clay ford junior, was appointed as executive chairman in the year 1998, and in the year 2011 he also became the company’s chief executive officer, with the Jacques Nasser’s departure, becoming the ford family’s first member to lead the company, ever since the retirement of Henry ford II, his uncle in the year 1982. Upon the retirement of COO and President Jim Padilla on the month of April 2006, that the role as well as assumed by Henry ford. In September, five months later, Alan Mulally was named as the CEO and president by ford, with the continuing ford as its executive chairman. The borrowing capacity of the company is raised in December 2006 to about 25 billion USD, all substantial corporate assets were considered as collateral. Bill ford the chairman stated that bankruptcy is not considered to be an option. United and ford auto workers who represented the North America with approximate workers of nearly 46000 hours, agreed to historic settlement of contract in 2007’s November, giving a considerable break to the company in terms of other economic issues and ongoing health care costs of retirees. The establishment of independently run, company funded beneficiary Voluntary employee association trust, which was included in the agreement, in order to shift the burden of retiree health care from the books of the company, thereby the balance sheet is improved. On the month of January in 2010’s 1st, this arrangement effect took place. Currently as a sign of its strong cash position, the entire current liability is contributed by ford to the VEBA in cash, also 500 million USD pre paid for its future liabilities to the fund. The agreement also gives job security to the hour based workers, which is what the workers were seeking by having the commitment of company in most of its factories to substantial investments.
The automaker also reported the annual largest loss of 12.7 billion USD in the history of company in the year 2006, also estimated that till 2009 it would return back to profitability. However, in the 2007’s second quarter, the Wall Street was surprised by the ford by posting profit of about 750 million USD. With a 2.7 billion USD loss, attributed largely for financing restructuring at Volvo, the company finished that year despite some gains.
For about to 2.3 billion USD, the ford sold its land rover and jaguar operation to Tata motors on the month of June 2nd in the year 2008.
Ford together with general motors and Chrysler, during 2008’s November, in Washington DC at congressional hearings it sought for bridge loans from government in the conditions face caused by the financial crisis of the year 2008. For the industry’s sustainability action plans were presented by three companies. Ford opted for not seeking loans from the government. Through legislation funding provisions of TARP the Chrysler and GM received loans from the government. To insure the debts of ford of about 68% the credit default swaps cost, in addition to 5 percent annual payments whose sum is insured for 5 years on the 19th of December month. In addition to 500000 payments per year, for insuring 10 million USD debts, 6.8 million USD paid up front. In the preceding year, on the January month in 2009, 14.6 billion losses had been faced by the company as reported by ford, which is one among the company’s record loss in history. In order to fund its operation, sufficient liquidity was retained by the company. In order for leveraging its cash position, the strategy debt of ford for equity exchanges through 2009’s April, erased 9.9 billion USD in liabilities i.e. 28 % of its total liabilities. The ford yielded 2.7 billion USD profit through these actions in the 2009 fiscal year, which is the first full year profit of the company in 4 years.
The corporate bonds of ford were upgraded to investment grade again from junk in the year 2012, lasting improvements, citing sustainable.
The ford announced its business sale called climate control components on the month of October 29th in the year 2012, which is its remaining last automotive components operation, for an undisclosed price to Detroit thermal systems LLC.
The ford announced on the 2012’s November 1st that the CEO alan mulally will stay along with company till the year 2014. The ford also announced the mark fields as its new chief operating officer in America.
As of 2012 the members of ford are: Stephen Butler, Richard A Gephardt, Ellen Marram, Alan Mulally, Kimberly Casiano, Edsel Ford II, William Clay Ford Junior, Homer Neal, Irvine Hockaday Junior, Jorma Ollila, William Clay Ford and John L Thornton.
The corporate levels main officers are: Lewis Booth as Chairman of ford Europe and PAG, and as also executive vice president, Donat Leclair as CFO and executive vice president, Mark fields as The Americas president and executive vice president, Mark A Schulz as the international operations president and executive vice president, paul mascarenas as the product developer of the Americas and engineering’s vice president and finally Michael E Bannister as CEO and Chairman of ford motor credit and group vice president.
A net profit of 6.6 billion USD was earned by ford in the year 2010 and its debt reduced to 14.5 billion USD from 33.6 billion USD, by lowering 1 billion interest payments following 2.7 billion USDs net profit in during the year 2009. The F series was the US’s bestselling vehicle in the year 2010. During the year 2009, the ford sold 528349 trucks of F series, which is a 27.7 % of increase from its previous year’s mark, out of 1.9 million vehicles total sale. The sales of trucks accounted for the ford’s profit and which is a biggest slice for it, as reported by USA Today. The realignment of ford also included for it’s owned wholly subsidiary, for debt acquisition and 15 billion in cash to a private equity group for Hertz Rent a Car. On the month of December in the year 2005, the all procedures of sale were completed. A joint venture of about 50:50 share with India’s Mahindra & Mahindra, which is called as Mahindra Ford India Limited. Previously in the year 1998, the ford had upped its stake to 72 %.
Operations of Ford
The manufacturing operations of ford are throughout worldwide, including in China, Mexico, Canada, United Sates of America, Turkey, Germany, United Kingdom, Argentina, Brazil, and South Africa and in Australia. With the Russian automaker GAZ, the ford also has it is cooperative agreement.
In North America
In the 2010’s first five months, in the US the auto sales rose to 4.6 million cars and 17 % increase in the sales of light trucks from earlier year. The main reason for its cause is due to its commercial customer’s return that had stopped during the recession period in 2009. At dealerships the individual customer’s sales have increased to 13 %, while the sales of fleet jumped to 32 %. As reported by ford, the 32 % of sale of fleet came on the month of May, when it announced about 23 % sales increase for the month. In 2010’s first seven months, the ford vehicles sales were increased to 24 %, including fleet and retail sale. The ford’s fleet sales rose to 386000 units i.e. to 35 % for the same period while 19 % sales increase for retail. The 39 % of sales of Chrysler is accounted by the fleet sales and for GM’s it is 31 %.
The ford in Britain and ford in Germany at first built different models until the 1960s late from one another, with the ford Capri and ford Escort being common to companies of both. The ford Cortina and ford taunus later on became identical, manufactured right hand drive and left hand drive vehicles respectively. The model ranges rationalization meant that may models production in the UK switched elsewhere to Europe, including Spain, Germany and Belgium. In the year 1982, the Cortina and taunus were replaced by ford sierra, which drowned for its aerodynamic radical styling, which was given soon with nicknames such as “the salesman’s spaceship” and as “jelly mould”.
The ford motor company increasingly has looked for its world cars such as fiesta, focus and mondeo to ford of Europe; although European sourced fords sales in the US had been disappointing. The Focus becomes bestselling car in compact segment in America since its 2000’s launch.
In the United Kingdom, the production was ended by ford in 2002’s February. It was for the first time in Britain the cars of ford had not been manufactured, although the transit van production still continues at the company’s facility in Southampton, engines at Dagenham and Bridgend, and at hale wood the transmissions were produced. The European ford’s development is broadly split between Cologne in Germany and Denton in Essex. The commercial vehicles Thames rangewre also been produced by ford, although this brand name use was discontinued in the year 1965. The mondeo range assembly takes place in Genk, fiesta in cologne and in Valencia and focus in Vsevolozhsk and in Saarlouis, apart from Europe continent. The production of transit takes place in Southampton and in Kocaeli, and transit Connect production in Kocaeli.
I turkey, the ford also owns a production plant by joint venture with one of the leading company. In the year 1970, the establishment of ford otosan took place, which manufactures the compact panel van “transit connect”, the “jumbo” and the full size long wheelbase version transit. In the yaer 2002, near kocaeli anew production plant was built, and it marked the end of assembly of transit in genk through it’s opening.
Another joint venture plant in Portugal near Setubal, was set up with Volkswagen’s collaboration, which assembled formerly the galaxy people carrier, in its sister ships, the SEAT Alhambra and VW Sharan. With the third generation’s introduction of the Ford, galaxy has moved the people carrier production to the Genk plant.
In the year 2008 majority of stakes were acquired by ford in automobile Craiova, in Romania. The first model of ford produced in Craiova was ford transit connect at the starting of 2009, followed by 2012’s B max which is a new small class and with engines of low capacity.
Over the last fifty years with relatively number of futuristic car launches, the ford Europe has broken its new grounds.
At the time of Anglia launch in the year 1959, the 2 door saloon was one of the quirky looking more stylized small family cars of Europe, but soon the buyers became accustomed due its huge popularity in particular with buyers of Europe and due to its looks. Even being replaced by more practical Escort in the year 1967, its selling rate was still well during those times.
The ford escort’s third incarnation was unveiled in the year 1980, and which marked move of the company to hatchback front wheel drive from salon rear wheel drive in the sector of small family car.
Until 2000 from 1990, the 4th generation escort production was there, although the focus its successor had been on sale from the year 1998. The focus was arguably the finest handling and dramatic looking on sale small family cars on its launch, and in huge volumes it sold up to the next generation focus’s launch at the 2004’s end.
The ford sierra which was unveiled in the year 1982 was a replacement for the massively popular and long running Taunus and Cortina models and it was at that times style setter at its launch time. The ford sierra’s ultra modern aerodynamic design was a world away from sharp edged Cortina, from a boxy, and just above where ever it was sold, it was popular by massive. The regular updates of it series kept it to look relatively fresh and cool until in the year 1993 it was replaced by the model mondeo, which had a front wheel drive transmission system.
The small cars popularity rise during the 1970s saw in the year 1976 with ford entering the market of mini car, which was it first hatchback Fiesta. Most of the fords production was concentrated mainly at Valencia, Spain and from the very start of fiesta it saw huge figures. In the year 1983 with an update and the all new model launch in the year 1989 strengthened the small car position in the market.
For details, visit Ford India's official website.