Ford Motor Company
Ford Motor Company OVERVIEW Ford Motor Company is a global automotive industry leader based in Dearborn, Mich. , manufactures and distributes automobiles in 200 markets across six continents. With about 300,000 employees and 108 plants worldwide, the company’s core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford Motor Credit Company. Ford Motor Company’s key peoples •Board of Directors Sir John R.
H. Bond: is group chairman, HSBC Holdings plc, London, United Kingdom. Ellen R.Marram: is managing director of North Castle Partners, LLC, a private equity firm.
Stephen G. Butler: is retired chairman and chief executive officer of KPMG, LLP. Kimberly A. Casiano: is president and chief operating officer, Casiano Communications, Inc. , a publisher of periodicals and magazines. Edsel B.
Ford II: is a retired vice president of Ford Motor Company and former president and chief operating officer of Ford Credit. William Clay Ford, Jr. : is Chairman of the Board and Chief Executive Officer of Ford Motor Company. Irvine O. Hockaday, Jr. : is retired president and chief executive officer of Hallmark Cards, Inc.
Marie-Josee Kravis: is a senior fellow of the Hudson Institute Inc. , a position she has held since 1994. Richard A. Manoogian: is chairman of the board and chief executive officer of Masco Corporation, a leading manufacturer of home improvement products.
Dr. Homer A. Neal: is director, University of Michigan ATLAS Project, Samuel A. Goudsmit Distinguished University Professor of Physics, and Interim President Emeritus of the University of Michigan. Jorma Ollila: is chairman of the board, chief executive officer and chairman of the group executive board of Nokia Corporation, Finland.James J.
Padilla: is president and chief operating officer of Ford Motor Company. Carl E. Reichardt: is retired vice chairman of Ford Motor Company, a position he held since October 30, 2001. Robert E. Rubin: is director, chairman of the executive committee and member of the Office of the Chairman, Citigroup, Inc. John L.
Thornton: is Professor and Director, Global Leadership Program, Tsinghua University, Beijing, China. William Clay Ford: is retired from the Board of Directors effective May 12, 2005, after 57 years of service. •Corporate Officers William Clay Ford, Jr. Chairman of the Board and Chief Executive OfficerJames J.
Padilla: President and Chief Operating OfficerLewis W. K. : Booth Executive Vice President Ford of Europe and Premier Automotive Group (Chairman, Jaguar, Land Rover and Ford of Europe)Mark Fields: Executive Vice President and President The Americas Donat R. Leclair: Executive Vice President and Chief Financial OfficerMark A. Schulz: Executive Vice President and President International OperationsAnne L.
Stevens: Executive Vice President and Chief Operating Officer The AmericasMichael E. Bannister: Group Vice President Chairman & CEO Ford Motor Credit Company) Francisco N. Codina: Group Vice President North America Marketing, Sales and ServiceJohn Fleming: Group Vice President (President and CEO, Ford of Europe)Derrick M. Kuzak: Group Vice President Product Development, The AmericasJoe W.
Laymon: Group Vice President Corporate Human Resources and Labor Affairs J C. Mays: Group Vice President and Chief Creative OfficerZiad S. Ojakli: Group Vice President Corporate AffairsRichard Parry-Jones: Group Vice President Global Product Development and Chief Technical OfficerDavid T. Szczupak: Group Vice PresidentManufacturing, The Americas Marvin W.
Adams: Senior Vice President Corporate Strategy and Chief Information OfficerThomas K. Brown: Senior Vice President Global PurchasingDarryl B. Hazel: Senior Vice President (President, Customer Service Division)David G. Leitch: Senior Vice President and General Counsel Hans-Olov Olsson: Senior Vice President and Chief Marketing Officer (Non-Executive Chairman, Volvo Cars)Fredrik Arp: Vice President (President and Chief Executive Officer, Volvo Cars)Joseph Bakaj: Vice President Product Development, Ford of EuropeStephen E. Biegun: Vice PresidentInternational Governmental Affairs Mei Wei Cheng: Vice President (President Ford Motor [China] Ltd.
)Susan M. Cischke: Vice President Environmental and Safety EngineeringPeter J. Daniel: Vice President (Chief Operating Officer, Ford Asia-Pacific and Africa)Felicia J. Fields: Vice President Human Resources Bennie W. Fowler: Vice President – Corporate Quality and Advanced Manufacturing EngineeringAl J. Giombetti: Vice President (President – Ford & Lincoln Mercury Marketing and Sales)Louise K.
Goeser: Vice President (President and CEO, Ford of Mexico)James C. Gouin: Vice PresidentController Steven K. Hamp: Vice President and Chief of StaffJoseph R. Hinrichs: Vice President North America Vehicle OperationsCharles B. Holleran: Vice President and Chief Communications OfficerAntonio Maciel: Vice President (President, South America) Paul A. Mascarenas: Vice President North America EngineeringMartin J.
Mulloy: Vice President Labor AffairsStephen T. Odell: Vice President Marketing, Sales and Service, Ford of EuropeJohn G. Parker: Vice President Ann Marie Petach: Vice President and TreasurerGeoff P. Polites: Vice President (CEO, Jaguar and Land Rover)Barb J.Samardzich: Vice President Powertrain OperationsGerhard Schmidt: Vice President Research and Advanced Engineering Robert L.
Shanks: Vice President and Controller, The AmericasJames P. Tetreault: Vice President Manufacturing, Ford of EuropeAlex P. Ver: Vice President (Chief Executive Officer/Chief Operating Officer Automotive Component Holdings)A. J. Wagner: Vice President (President, Ford Motor Credit North America) FORD’S MISSION The Ford Foundation is a resource for innovative people and institutions worldwide.
Their goals are to: •Strengthen democratic values, Reduce poverty and injustice, •Promote international cooperation and •Advance human achievement HISTORY A little bit about Ford Henry: •In the Beginning: The story of Henry Ford is not of a prodigy entrepreneur or an overnight success. Ford grew up on a farm and might easily have remained in agriculture. But something stronger pulled at Ford’s imagination: mechanics, machinery, understanding how things worked and what new possibilities lay in store. As a young boy, he took apart everything he got his hands on.
He quickly became known around the neighborhood for fixing people’s watches.In 1896, Ford invented the Quadricycle. It was the first “horseless carriage” that he actually built. It’s a far cry from today’s cars and even from what he produced a few years later, but in a way it’s the starting point of Ford’s career as a businessman. Until the Quadricycle, Ford’s tinkering had been experimental, theoretical—like the gas engine he built on his kitchen table in the 1890’s, which was just an engine with nothing to power. The Quadricycle showed enough popularity and potential that it launched the beginning of Ford’s business ventures.
•Ideas into Business:Ford Motor Company was founded on June 16, 1903. The first Ford, the Model A, was being sold in Detroit a few months later. When founded, Ford Motor Company was just one of 15 car manufacturers in Michigan and 88 in the US. But as it began to turn a profit within its first few months, it became clear that Henry Ford’s vision for the automotive industry was going to work, and work in a big way. During the first five years of Ford Motor Company’s existence, Henry Ford, as chief engineer and later as president, directed a development and production program that started in a converted wagon shop. Ford Family through the Years: The years between the world wars were a period of hectic expansion.
In 1917, Ford Motor Company began producing trucks and tractors. In 1919 a conflict with stockholders over the millions to be spent building the giant Rouge manufacturing complex in Dearborn, Michigan led to the company becoming wholly owned by Henry Ford and his son, Edsel, who then succeeded his father as president. After Edsel Ford passed away in 1943, a saddened Henry Ford resumed the presidency.Henry Ford resigned for the second time at the end of World War II.
His eldest grandson, Henry Ford II, became president on Sept. 21, 1945. Even as Henry Ford II drove the industry’s first postwar car off the assembly line, he was making plans to reorganize and decentralize the company to resume its prewar position as a major force in a fiercely competitive auto industry. Henry Ford II provided strong leadership for Ford Motor Company from the postwar era into the 1980s.
He was president from 1945 until 1960 and chief executive officer from 1945 until 1979.He was chairman of the board of directors from 1960 until 1980, and remained as chairman of the finance committee from 1980 until his death in 1987. Now, at the beginning of its second century, another Ford family member has been named CEO of Ford Motor Company, the first family member to hold the position in more than 20 years. Like his uncle, Henry Ford II, William Clay Ford Jr.
(great-grandson of Henry Ford) leads a company where “family” has a much broader meaning, referring to far more than just those with the last name “Ford. Today, the Ford family comprises employees, dealers, suppliers, shareholders, customers, and more—all those that help fulfill the vision Bill Ford has defined for the company: to create great products that benefit customers, shareholders, and society. It was a Dream that became a Business: On June 16, 1903, when Henry Ford and 11 business associates signed the company’s articles of incorporation then, the Ford Motor company entered the business World. With $28,000 in cash, the pioneering industrialists gave birth to what was to become one of the world’s largest corporations.
Only few companies are as closely identified with the history and development of industry and society throughout the 20th century as Ford Motor Company. Just like most of the great enterprises, Ford Motor Company’s beginnings were modest. Its earliest record of a shipment was on July 20, 1903, approximately one month after incorporation, to a Detroit physician. With the company’s first sale came hope—a young Ford Motor Company had taken its first steps. The First Vehicles: Henry Ford insisted that the company’s future lay in the production of affordable cars for a mass market.Beginning in 1903, the company began using the first 19 letters of the alphabet to name new cars.
In 1908, the Model T was born. 19 years and 15 million Model T’s later, Ford Motor Company was a giant industrial complex that spanned the globe. In 1925, Ford Motor Company acquired the Lincoln Motor Company, thus branching out into luxury cars, and in the 1930’s, the Mercury division was created to establish a division centered on mid-priced cars. Ford Motor Company was growing. Mass Production on the Line: Perhaps Ford Motor Company’s single greatest contribution to automotive manufacturing was the moving assembly line.
First implemented at the Highland Park plant (in Michigan, US) in 1913, the new technique allowed individual workers to stay in one place and perform the same task repeatedly on multiple vehicles that passed by them. The line proved tremendously efficient, helping the company far surpass the production levels of their competitors—and making the vehicles more affordable. Becoming a Global Company: In the 50’s came the Thunderbird and the chance to own a part of Ford Motor Company. The company went public and, on Feb. 24, 1956, had about 350,000 new stockholders.Henry Ford II’s keen perception of political and economic trends in the 50’s led to the global expansion of FMC in the 60’s, and the establishment of Ford of Europe in 1967, 20 years ahead of the European Economic Community’s arrival.
The company established its North American Automotive Operations in 1971, consolidating U. S. , Canadian, and Mexican operations more than two decades ahead of the North American Free Trade agreement. Ford Motor Company started the last century with a single man envisioning products that would meet the needs of people in a world on the verge of high-gear industrialization.Today, Ford Motor Company is a family of automotive brands consisting of: Ford, Lincoln, Mercury, Mazda, Jaguar, Land Rover, Aston Martin, and Volvo.
The company is beginning its second century of existence with a worldwide organization that retains and expands Henry Ford’s heritage by developing products that serve the varying and ever-changing needs of people in the global community. CONTRIBUTION TOWARDS THE ENVIRONMENT Ford’s position in the environmental factors: Ford Motor Company takes environmental concerns seriously. We’re implementing ar-reaching programs to improve our products, plants and processes. We’re integrating new environmental technologies that offer breakthrough improvements in fuel economy.
And we’re developing new practices that are yielding real-world results. One of Ford Motor Company’s good works is their work towards the Environment and some of their contributions toward the Environment are: •Cleaner Manufacturing: 1. Research and Pre-development of Diesel Engines Since, the popularity of diesel engines has grown recently, especially in Europe, due to : •Reasonable Fuel prices •Higher efficiency Better torque characteristics The diesel team is currently working on technologies for first class diesel engines that will comply with all future emissions standards in the world. FFA is working to develop a new generation of low-pollutant diesel engines with outstanding performance and low noise by looking at: •Optimizing engine controls •The combustion process within the engine •After treatment 2.
Environmental Science To investigate the atmospheric effects of vehicle emissions, first the atmosphere itself must be examined to determine both natural and man-made sources of emissions.What the FFA scientists do: •Concentrate on the chemical-physical composition of particles that are analyzed in field and laboratory tests •Design atmospheric models simulating today’s air quality •Predict specific future scenarios as the result of certain technological developments •Form a solid basis for scientific discussion at European policy level when determining new emission limits. 3. Alternative Power trains The FFA is paving the way for Ford Motor Company to play a leading role in “green” technology.Projects in this area include: •Fuel Cell Technology •Electric Vehicles •Hybrid Vehicles The FFA is also working on an “In-Vehicle-Energy Management” system, composed of integrated starter generator systems and intelligent control system concepts that will guarantee the optimum interaction of all the subsystems in the vehicle.
4. Vehicle Dynamics The development of electronically controlled chassis systems is making a major contribution to improving driving and steering behavior. These systems include: •Electro-mechanical brakes •Power-assisted steering Steer by wire (where the mechanical steering column is replaced by an electronic system) A higher-ranking control strategy will be developed to ensure that these systems can communicate with each other to allocate a preference depending on the situation. •Ford is committed to protecting the environment Recognizing that the manufacture and operation of motor vehicles impacts the environment, Ford has committed significant resources to: 1.
Develop advanced vehicle technologies. Ford is producing partial zero emission vehicles (PZEVs), flexible fuel vehicles and hybrid electric vehicles.We are a leading researcher doing serious development work with clean diesel, renewable fuels, and hydrogen-fueled internal combustion engines and fuel cell vehicles 2. Adopt new clean air standards faster than required.
Ford’s goal is to meet and exceed the Environmental Protection Agency’s stringent Tier II phase-in standards, which are 98% cleaner than prior standards 3. Reduce the environmental impact of our plants. All Ford product development and manufacturing sites have been certified to the ISO 14001 global environmental quality standard.We are also developing sustainable manufacturing facilities such as the new Ford Rouge Center, and other sites worldwide 4. Recycle and reuse materials. Ford has set targets to recycle 85% of the content of our vehicles, and we are contracting with suppliers to specify environmentally friendly parts and components 5.
Conserve natural resources. Ford takes part in global programs to conserve energy and water. Our facilities voluntarily reduce carbon dioxide and nitrogen oxide emissions, and minimize the production of volatile organic compounds and solid waste Ford is cultivating environmentally responsible policies Ford is actively working with broad-based coalitions of industrial, educational, governmental and non-governmental organizations to: •Grow the market for advanced technology vehicles We support market-based incentives that encourage the purchase of advanced technologies, like the federal tax credits for consumers who buy advanced-technology vehicles, including hybrids, advanced diesels, and hydrogen-fueled vehicles included in the U. S.
Energy Policy Act of 2005. Ford also is working with state policy makers to encourage state fleet procurement plans and customer sales tax exemptions for these vehicles •Advance the scientific and technical knowledge base Ford has research partnerships with companies such as BP, and with universities such as Princeton and the Massachusetts Institute of Technology, to promote knowledge-based and market-based climate change and environmental policy solutions HEALTH CARE Ford’s position in the Health Care Factor:For over a decade, intense competition in the U. S. auto industry has made it impossible for automakers to substantially raise prices.
But in the health care industry, it’s been a dramatically different story. Health Care striker shock Health care costs haven’t just increased, they’ve skyrocketed. For example, in 2000 Ford paid $2 billion for employee health care. By 2004, the cost of providing health care had grown to $3. 1 billion, a 55 percent increase in just four years.
In fact, today the cost of providing health care benefits adds about $1,000 to the sticker price of every Ford car and truck built in America This growing financial burden threatens the health of Ford’s core business because it diverts funds away from new product development and other business investments. Over time, annual double-digit cost increases for health care are simply unsustainable. That’s why Ford management is making health care system reform one of its top priorities. Where Ford stands on Health CareFord Motor Company is committed to providing high-quality, affordable health care coverage for its employees, retirees, and their families. We believe a coalition of business, labor, consumer, medical, government and other stakeholders is key to meeting the health care challenge. To encourage step-by-step improvement in the American health care system, Ford supports the following initiatives: •Health Care Information Technology (HIT)—a system wide adoption of health information technology (HIT) is one of the key enablers for managing cost and improving quality.
We applaud the President, the U. S. Congress, and the state of Michigan for emphasizing the importance and promotion of system-wide adoption of HIT. Ford Motor Company’s commitment to this national effort includes taking a leadership role and providing facilitators for implementation of regional initiatives.
•Generic prescription drug programs—timely availability of generic alternatives is one of the few tools available to manage prescription drug costs, which continue to be one of the fastest growing elements of America’s health care system.Therefore, we oppose additional patent extensions and market exclusivities, and we support establishment of an approval process for generic versions of bio-engineered drugs •Cost saving measures—such as reasonable limits on accidental-injury jury awards, and regulations that keep the capacity of health care providers in line with demand, are key. Therefore, we oppose laws and regulations that could lead to cost increases, such as anti-managed care initiatives and laws mandating businesses to offer specific benefits •Provider accountability—we support aws and regulations that evaluate and report the safety and quality of health care services •Quality and access programs—we support initiatives that motivate health care providers to improve access to their services and better manage their costs •Medicare reform—we support revamping Medicare HMOs, the addition of prescription drug coverage, and structural improvements that increase the long-term financial strength of the Medicare program •National health care initiatives—we support federal government support of catastrophic health care costs and coverage for the uninsuredHEALTH AND ENVIRONMENTAL Sustainable economic development is important to the future welfare of Ford Motor Company, as well as to society in general. To be sustainable, economic development must provide for protection of human health and the world’s environmental resource base.
It is Ford’s policy that its operations, products, and services accomplish their functions in a manner that provides responsibly for protection of health and the environment. Ford is committed to meeting regulatory requirements that apply to its businesses.With respect to health and environmental concerns, regulatory compliance represents a minimum. When necessary and appropriate, we establish and comply with standards of our own, which may go beyond legal mandates.
In seeking appropriate ways to protect health or the environment, the issue of cost alone does not preclude consideration of possible alternatives, and priorities are based on achieving the greatest anticipated practical benefit while striving for continuous improvement.Ford’s policy of responsibly protecting health and the environment is based on the following principles: Protection of health and the environment is an important consideration in business decisions. Consideration of potential health and environmental effects—as well as present and future regulatory requirements—is an early, integral part of the planning process. Company products, services, processes, and facilities are planned and operated to incorporate objectives and targets that are periodically reviewed so as to minimize, to the extent practical, the creation of waste, pollution, and any dverse impact on health and the environment. Protection of health and the environment is a company-wide responsibility. Management of each activity is expected to accept this responsibility as an important priority and to commit the necessary resources.
Employees at all levels are expected to carry out this responsibility within the context of their particular assignments and to cooperate in company efforts. The adoption and enforcement of responsible, effective, and sound laws, regulations, policies, and practices protecting health and the environment are in the company’s interest.Accordingly, we participate constructively with government officials, interested private organizations, and concerned members of the general public toward these ends. Likewise, it is in our interest to provide timely and accurate information to our various publics on environmental matters involving the company.
MANUFACTURING Ford’s position in Manufacturing: For generations, manufacturing has been the dynamo behind the U. S. economy. No other nation matches American industrial output or productivity.
Measured by itself, the American manufacturing sector would be the fifth-largest economy in the world, larger than China’s. Challenges facing U. S. Manufacturing Nevertheless, manufacturing in America faces a number of serious challenges.
Factories around the world now have access to the same computer technology, machinery, and logistical systems we do. And investment capital flows rapidly across borders, as investors seek lower labor costs and higher rates of return. The impact of globalization and a changing economy has been the loss of millions of American manufacturing jobs.Questions have been raised about the long-term viability of U.
S. manufacturing, as well as the ability of the domestic auto industry to compete against foreign-based automakers who are importing and building more vehicles here than ever before. Contributions of the U. S. auto industry Motor vehicle production is the largest manufacturing industry in the United States. It directly or indirectly employs more than 6.
6 million Americans, or about five percent of all non-government jobs. Almost 90 percent of all American autoworkers have jobs at Ford, GM or the Chrysler Group of DaimlerChrysler.These three employers build 75 percent of all the cars and trucks made in America, and operate plants in 20 states. Competitive issues facing American automakers A combination of factors at home and abroad are making it more difficult for the U.
S. auto industry to generate the profits it needs to invest in new products and compete on an equal footing with foreign automakers. At home, the U. S. auto industry is burdened with high health care expenditures and high manufacturing legacy costs related to retirement and pension outlays.
Also, fuel economy regulations favor automakers that sell more cars and fewer trucks and SUV’s, providing another advantage to the imports. Internationally, foreign governments manipulate the value of their currencies to give their automakers unfair price advantages, and use trade barriers to keep imports out of their home markets. Working together on long-term solutions Together with other U. S. manufacturers and industrial organizations, Ford is supporting public policies that: •Lower the cost of manufacturing in the U.
S. y reforming our health care system, addressing the manufacturing legacy cost burdens that are stifling investment and job growth, and tackling excessive regulations that add unnecessary costs •Get a square deal in the global marketplace by promoting open markets and a level playing field for all manufacturers •Expand research and development opportunities by investing in innovative technologies that will provide better fuel economy and environmental quality •Strengthen education and retraining by providing our workers with the new skills required by a changing economyAWARDS 1. Recycling Award: The “Recycling Leadership Award” was given to Ford Motor Company from the National Recycling Coalition. Ford is the first corporation to receive the “Recycling Leadership” award from The National Recycling Coalition—a 5,000 member not-for-profit group.
2. Leadership Award: Ford of Canada was recognized for environmental leadership in the Canadian manufacturing-transportation industry sector by Canada’s Climate Change Voluntary Challenge & Registry Inc. (VCR Inc. ).The company received a prestigious Leadership Award at VCR Inc.
‘s annual Council of Champions meeting and Leadership Awards ceremony in Hull, Que. Ford was awarded for its commitment to environmental excellence and energy management through the certification of all its Canadian manufacturing facilities to the ISO 14001 Environmental Management Systems standard. 3. Diversity Award: At Ford Motor Company, they believe a company with diverse talent, ideas and experiences is a strong company.In that sense, diversity is its own reward. The following are some of the major diversity awards we’ve recently received.
Diversity Inc. ’s Top 50 Companies for Diversity For the second year running, Diversity Inc, the bi-monthly magazine dedicated to diversity issues in business, has named Ford one of the “Top 50 Companies for Diversity. ” The award recognizes our efforts in supplier diversity, Employee Resource Group’s (ERGs) and our work life integration programs and benefits. Working Mother’s Top 100 Place to WorkIn naming Ford as one of the top 100 places for working mothers to work, Working Mother applauds Ford’s broad menu of family-friendly benefits, which includes 52 weeks of job-guaranteed leave, eight weeks fully paid leave for new mothers, and our company-sponsored childcare centers and backup care. Latina Style’s Top 50 Companies for Hispanic Women to Work This award was a nod to our career programs for Hispanic women. These programs include our mentoring programs, flextime/alternative work schedules, education reimbursement and our company’s Hispanic association, Ford Hispanic Network Group (FHNG).
4.JAGUAR LEADS IN TRAFFIC SAFETY: Today Jaguar received the 2006 World Traffic Safety Symposium’s Traffic Safety Achievement Award in the Automaker Category. (21 Apr 06, USA) 5. FORD MOTOR COMPANY NAMED BEST LEGAL DEPARTMENT BY CORPORATE COUNSEL MAGAZINE Ford Motor Company attorneys was named “Best Legal Department” for 2006 by Corporate Counsel magazine. (20 Apr 06, USA) 6.
JAGUAR XJ VOTED BEST LARGE EXECUTIVE CAR AT THE AUTO EXPRESS USED CAR HONOURS 2006 The Jaguar XJ has picked up the award for the ‘Best Large Executive Car’ at the Auto Express Used Car Honours 2006, announced today in the Auto Express weekly magazine. 12 Apr 06, UK) 7. FORD MOTOR COMPANY ANNOUNCES 11 PROJECTS TO BE FUNDED UNDER 2005 CONSERVATION AND ENVIRONMENTAL GRANTS IN VIETNAM Today, Ford Vietnam Limited officially announced 11 projects to be funded under Ford Motor Company 2005 Conservation and Environmental Grants. (07 Apr 06, VN) 8.
AMERICAN LATINO MEDIA ARTS AWARDS HAS “DESPERATE” HOST & BLUE (OVAL) SPONSOR The National Council of La Raza (NCLR) announced that Ford Motor Company will be a “Gold” sponsor of the American Latino Media Arts (ALMA) Awards broadcast June 5 on ABC-TV, hosted by “Desperate Housewives” star Eva Longoria. 04 Apr 06, USA) 9. AAA NAMES THE JAGUAR XJ8L AS TOP CAR PICK FOR 2006 Today, the American Automobile Association (AAA) announced its top cars for 2006 in 13 distinct categories and selected the Jaguar XJ8L as its top pick in the $50,000+ category. (21 Mar 06, USA) 10. FORD EARNS EPA AWARD FOR CONSERVING ENERGY Ford’s successes in reducing fuel usage and greenhouse gas emissions today earned it the coveted ENERGY STAR 2006 Partner of the Year award from the U. S.
Environmental Protection Agency. (21 Mar 06, USA) 11.NEITHER RAIN, NOR SLEET, NOR SNOW CAN STOP THE FORD EXPLORER OR FIVE HUNDRED The prestigious New England Motor Press Association (NEMPA) today named the 2006 Ford Explorer the Best-in-Class SUV and the Five Hundred Best-in-Class All Weather Sedan, both in the $25,000-$30,000 category, in the association’s 9th Official Winter Vehicle of New England competition. (14 Mar 06, USA) 12.
TOP FORD ENGINEERS RECOGNIZED FOR CONTRIBUTIONS Three Ford Motor Company engineers, Dr. Priya Prasad, Dr. Davor Hrovat and Dr. Stephen Rouhana were recently elected to two prestigious engineering boards.
03 Mar 06, USA) 13. FORD RECEIVES CHINA’S HIGHEST ENVIRONMENTAL PROTECTION AWARD Today, Ford Motor (China) Ltd. received the “2005 China Environment Award” from China Environmental Protection Foundation* at the Great Hall of People in Beijing. Ford Motor is the only global company to win this highest honor in environmental protection, along with four state-owned enterprises. (22 Feb 06, CN) COMPANY’S SUBSIDIARIES/AFFILIATES The main four Subsidiaries of the Company are: Company NameLocationSales ($mil)Company Type Ford Motor (China) Ltd. Shanghai, China-SubsidiaryFord Motor CompanyDearborn, MI, United States$177,089Public (NYSE: F) Ford Motor Company of Canada, LimitedOakville, Canada$15,023Subsidiary Ford Motor Credit CompanyDearborn, MI, United States$17,882Subsidiary 1.
Ford Motor (China) Ltd. The origins of Ford Motor (China) can be traced back to 1913 when Henry Ford sold his famous Model Ts in Shanghai. Today Ford is back in China in a big way. With the help of its Chinese joint venture partners (including Changan Automotive Corp. ), Ford builds and sells two models in China — the Fiesta and the Mondeo.Ford Motor (China) also imports some of its other brands for sale in china including Land Rover, Mazda, Jaguar, and Volvo.
Ford operates about 150 dealerships throughout China and also offers Ford Quality Care services. In China’s Ford Motor Ltd. The Chairman and CEO is Mei Wei Cheng as it is mentioned in the Corporate Officers. VP Marketing, Sales, and Services is Dale Jones. VP Planning and Development is Keith A. Davey.
2. Ford Motor Company (NYSE: F) Ford Motor began a manufacturing revolution with its mass production assembly lines in the early 1900s.Now the company is firmly entrenched in the status quo as one of the world’s largest makers of cars and trucks. It makes vehicles with such brands as Aston Martin, Ford, Jaguar, Lincoln, Mercury, and Volvo. Among its biggest successes are the redesigned Ford Mustang and F-Series pickup.
Ford owns a controlling (33%) stake in Mazda and also controls the Land Rover SUV nameplate. The finance subsidiary, Ford Motor Credit, is the US’s #1 auto finance company. Ford has sold Hertz, the world’s #1 car-rental firm. The Ford family owns about 40% of the company’s voting stock. Company’s Key NumbersCompany TypePublic (NYSE: F) Fiscal Year-EndDecember 2005 Sales (mil.
)$177,089. 0 1-Year Sales Growth3. 2% 2005 Net Income (mil. )$2,024. 0 1-Year Net Income Growth(42. 0%) 2005 Employees300,000 1-Year Employee Growth(7.
7%) In Ford Motor Company (NYSE: F) The Chairman and CEO is William Clay (Bill) Ford Jr. (mentioned in the Corporate Officers). President, COO, and Director is James J. (Jim) Padilla (mentioned in the Corporate Officers). EVP and CFO is Donat R.
(Don) Leclair (also mentioned in the Corporate Officers). Their Top Main Competitors are Daimler Chrysler, General Motors, and Toyota. . Ford Motor Company of Canada, Limited Ford Motor Company of Canada is where the Mustang meets the maple leaf. A wholly owned subsidiary of Ford Motor Company, Ford Canada is that country’s longest-running automobile maker.
The company was founded in 1904 when, with a $125,000 investment, Henry Ford set up limited operations at the McGregor wagon factory in Windsor, Ontario, across the Detroit River from his original plant in Dearborn, Michigan. Ford Canada manufactures cars and trucks, as well as hybrid and electric vehicles, at six assembly and manufacturing plants.The company also operates two parts distribution centers, and it oversees about 540 Ford and Ford-Lincoln dealerships, including dealers in every Canadian province. In Ford Motor Company of Canada, Limited The President and CEO is as it is mentioned in the Corporate Officers, William (Bill) Osborne. VP, Marketing is David Greanberg. Their Top Main Competitors are Daimler Chrysler Canada, GM Canada, and Toyota.
4. Ford Motor Credit Company Seems its trucks aren’t the only things built Ford tough. The automaker’s subsidiary, Ford Motor Credit, is proving to be pretty resilient, too.One of the world’s largest auto financing companies, it funds autos for and through some 12,500 Ford, Lincoln, Mercury, Jaguar, Land Rover, Mazda, Aston Martin, and Volvo dealerships. It finances new, used, and leased vehicles (including about 40% of new Fords sold in the US) and provides wholesale financing, mortgages, and capital loans for dealers. The company also offers individual and business fleet financing.
Its insurance operations offer extended service contracts, automobile insurance, wholesale inventory insurance, and credit life and disability insurance. Company’s Key NumbersCompany TypeSubsidiary of Ford Fiscal Year-EndDecember 2004 Sales (mil. )$17,882. 0 1-Year Sales Growth(12. 5%) 2004 Net Income (mil.
)$2,862. 0 1-Year Net Income Growth57. 5% 2004 Employees18,804 1-Year Employee Growth(10. 5%) In Ford Motor Credit Company Chairman and CEO is Michael E. (Mike) Bannister (refer to Corporate Officers). Vice Chairman and CFO is K.
R. Kent (refer to Corporate Officers). EVP and Director; President, Ford Credit North America is A. J.
Wagner (refer to Corporate Officers). Other Subsidiaries/ Affiliates includes: •Auto Alliance International, Inc. nd Automobile Protection Corporation •Ford Division, and Ford Otomotiv Sanayi A. S. •Jaguar Cars Limited •Land Rover, and Land Rover North America, Inc.
•Lincoln Mercury •Mazda Motor Corporation •Percepta, LLC •Premier Automotive Group •Volvo Car Corporation •Volvo Car Finance North America •Volvo Cars of North America Inc. FINANCIALS Annual Income Statement All amounts in millions of US dollars except per share amounts. Dec 05Dec 04Dec 03 Revenue177,089. 0171,652. 0164,196.
0 Cost of Goods Sold138,222. 0122,804. 0124,303. 0 Gross Profit38,867.
048,848. 039,893. 0 Gross Profit Margin21. 9%28.
5%24. 3%SG&A Expense24,652. 025,115. 017,480.
0 Depreciation & Amortization6,722. 013,052. 014,297. 0 Operating Income7,493.
010,681. 08,116. 0 Operating Margin4. 2%6.
2%4. 9% No operating Income2,146. 01,243. 0944. 0 No operating Expenses7,643.
07,071. 07,690. 0 Income Before Taxes1,996. 04,853. 01,370.
0 Income Taxes(512. 0)937. 0135. 0 Net Income After Taxes2,508. 03,916. 01,235.
0 Continuing Operations2,228. 03,634. 0921. 0 Discontinued Operations47. 0(147.
0)(162. 0) Total Operations2,275. 03,487. 0759. 0 Total Net Income2,024. 03,487.
0495. 0 Net Profit Margin1. 1%2. 0%0. 3% Diluted EPS from Continuing Operations ($)1. 31.
800. 50 Diluted EPS from Discontinued Operations ($)0. 02(0. 07)(0. 09) Diluted EPS from Total Operations ($)1. 151.
730. 41 Diluted EPS from Total Net Income ($)1. 041. 730. 27 Dividends per Share0.
400. 300. 40 Annual Balance Sheet All amounts in millions of US dollars except per share amounts. Dec 05Dec 04Dec 03 Assets Current Assets Cash31,499. 023,511.
021,770. 0 Net Receivables114,497. 0116,720. 0113,614.
0 Inventories10,271. 010,766. 09,181. 0 Other Current Assets43,875. 059,159.
027,603. 0 Total Current Assets200,142. 0210,156. 0172,168.
0 Net Fixed Assets40,707. 044,551. 041,993. 0Other Non current Assets28,627. 037,947.
0101,759. 0 Total Assets269,476. 0292,654. 0315,920. 0 Liabilities and Shareholders’ Equity Current Liabilities Accounts Payable22,813. 021,489.
020,420. 0 Short-Term Debt0. 00. 029,573.
0 Other Current Liabilities72,977. 031,187. 032,295. 0 Total Current Liabilities95,790. 052,676.
082,288. 0 Long-Term Debt154,332. 0172,973. 0150,231.
0 Other Non current Liabilities0. 043,912. 057,678. 0 Total Liabilities256,519. 0276,609. 0304,269.
0 Shareholders’ Equity Preferred Stock Equity0. 00. 00. 0 Common Stock Equity12,957. 016,045. 011,651.
0 Total Equity12,957. 016,045. 11,651. 0 Shares Outstanding (mil. )1,908. 01,831.
01,908. 0 Annual Cash Flow Statement All amounts in millions of US dollars except per share amounts. Dec 05Dec 04Dec 03 Net Operating Cash Flow21,679. 024,514. 020,195. 0 Net Investing Cash Flow7,457.
0(14,851. 0)(6,325. 0) Net Financing Cash Flow(20,651. 0)(9,865. 0)(5,132. 0) Net Change in Cash7,989. 0303. 09,549. 0 Depreciation & Amortization6,722. 013,052. 014,297. 0 Capital Expenditures(9,548. 0)(9,267. 0)(7,749. 0) Cash Dividends Paid(738. 0)(732. 0)(733. 0) As these chart shows, the years 2004 and 2005 were their most successful and busiest years.There has been some increase from the year of 2003 to 2005. Stock Quote 04/23/06 02:11:57NYSE 7. 32 -0. 63% -7. 92% Prev. Close7. 9500Open7. 7600 BidNumber0. 0000Bid Size0 AskNumber0. 0000Ask Size0 High7. 960052 Wk High11. 4800 Low7. 290052 Wk Low7. 1300 RestrictedNo Volume52,428,000 Comparison with Company’s Top Main Competitors FordDaimler ChryslerGeneral MotorsToyota Annual Sales177,089. 0177,260. 0192,604. 0172,749. 0 Employees300,000—-265,753 Market Cap ($ mil. )14,256. 658,402. 412,803. 3186,149. 4 By looking at this comparison chart, we can conclude that Ford is neither leading nor following its competitors.It is just rolling along with them. As we conclude the financial part of the Ford Motor Company, we can conclude that in the years of 2004 and 2005, the company had its most of its successes financially. OTHER SUCCESSES The Ford Motor Company is one of the world’s leading automotive companies, and has been for most of the 20th Century. Many millions of its products are now on the roads of every country on earth. As a result, the distinctive Ford logo is one of the most widely recognized commercial symbols in the world and is representative of an extraordinarily powerful consumer brand.The integrity of that brand has been secured, decade after decade, by the quality of the customer experience as it applies to every aspect of ownership: product quality, routine maintenance and dealer support of the customers’ vehicles. In this essential area of the customer relationship, parts supply to the dealers has a vital role to play. In the increasingly competitive automotive market, with higher levels of customer choice and more intense price competition, no aspect of the customer experience can be neglected. Continuous improvements in performance must be achieved in order to keep customer satisfaction levels as high as possible.The Challenge Parts supply is, of its very nature, an unusually complex matter. The Ford Customer Service Division (FCSD) supplies service parts to more than 10,000 dealerships throughout the world. As a matter of routine, over 500,000 unique part numbers are supplied on the network to dealers and the customer demand volatility level in this process is remarkable. It is clear that many aspects of parts supply are unpredictable, because no one can say for certain which parts will be required for any given service or repair.As a result, variation from the average level of requirement for any given part can range from as low as 30 percent per time period to as high as 400+ percent per time period. Yet somehow the delivery system has to take all of this volatility into account and yet provide virtually on demand availability for each service or repair. In reviewing its service parts supply chain back in 1999, Ford’s goal was simple: to deliver best-in-class performance. In an increasingly competitive market, this meant planning for a significant improvement over the levels of support being achieved at the time.Some legacy systems would need to be replaced, while others upgraded. This was a relatively long-term effort and left one major question to be answered: what could be done to improve performance significantly in the short term, while planning for change on a larger scale took place? Cap Gemini Approach Cap Gemini had been an adviser to different parts of the Ford Motor Company for several years already, and was invited to review this challenge and suggest how to meet it. Precise targets included reducing inventory levels, improving customer fill rates, and reducing customer back order lines.The plan agreed with Ford included a blend of technology, process improvements, new metrics, and human skills; aimed at finding pragmatic and achievable ways to gain more from installed systems while also preparing for the future systems. A key aspect of the solutions delivered under the plans facilitated by Cap Gemini was the way that consultants and client staff formed themselves into a single, focused team. The result was added speed and efficiency in achieving near-term improvements, while delivering a high level of skills and knowledge transfer to the FCSD staff.Specific solution ideas focused on the need to improve aspects of the current legacy systems in order to achieve much greater efficiency. These included software tools to improve Distribution Resource Planning to improve forecasting and improve inventory visibility throughout the supply chain. Other tools were developed to measure volatility and streamline inventory flow, thus shortening supply-chain lead times. Cap Gemini brought its unique levels of supply chain expertise to bear on planning, developing, and helping FCSD deploy a wide range of high impact solutions.VALUE DELIVERED This story is far from over but even in the relatively short term, some very clear results have been achieved by the joint efforts of the many dedicated FCSD and Cap Gemini people who have worked so hard on this project. The work was performed in parallel with process improvements being implemented by FCSD in its supply base and in the FCSD Parts Depot network. A few statistics summarize the impact of all of these improvements: •Customers fill rates (the percentage of customer lines completely filled on time) were 93 percent in the US and 93. percent in Europe. After the project, the numbers are respectively 98 percent (an improvement of 5 points) and 96. 8 percent (an improvement of 3. 2 points) •Open customer back order lines were over a full day’s business in both the US and in Europe. The figures now are respectively less than 15 percent of a day’s business in the U. S. (85 percent reduction) and less than 40 percent of a day’s business in Europe (60 percent reduction) •Inventory value was $1,045 million in the US and Europe. The figure today is reduced to $838 million (an improvement of $207 million).In terms of speed and efficiency, these are remarkable enough achievements, but when translated into higher customer satisfaction and thus increased brand loyalty, the true significance of the project becomes clear. Ford Motor Company is now approaching best-in-class levels and the upcoming strategic changes to systems and processes will extend Ford’s lead over its competitors. In one of the most volatile areas of a fast moving, fast changing market, this is a good example of how adaptive thinking, backed by ingenious planning and top quality teamwork can achieve great results.MARKET Ford Motor’s Marketing Mix: Product(s): Ford Motor Company is an automotive company selling only cars and accessories. Ford Motor Company sells cars by the brand names of: Ford, Lincoln, Mercury, Mazda, Volvo, Jaguar, Land Rover, and Aston Martin. Price(s): Ford Motor Company’s prices are different on every different car. Ford: The price ranges from $13,995. 00 to $38,985. 00. More money will be charged when you customizing your own vehicle. Lincoln: The price ranges from $24,999. 00 to $50,999. 00. Extra charge for customized vehicles.Mercury: The price ranges from $18,000. 00 to $40,000. 00. Customizing your own car will charge you more money. Mazda: The price ranges from $16,000. 00 to $40,000. 00. More money will be charged when customizing the vehicle. Volvo: The price ranges from $30,000. 00 to $62,000. 00. Extra charge for customized vehicles. Jaguar: The price ranges from $40,000. 00 to $125,000. 00. Customizing your own vehicle will charge you more money. Land Rover: The price ranges from $50,000. 00 to $120,000. 00. More money will be charged when customizing your vehicle.Aston Martin: The price ranges from $110,000. 00 to $255,000. 00. Extra charges for customized vehicles. Promotion(s): Ford Motor Company promotes their products on magazines, TV commercials, outdoor advertisings, newspapers, big posters, as well as sponsorships on different events. These types of promotions also take place in different countries around the world. Place (distribution): Ford Motor Company’s places in which they distribute are: Ford Motor Company’s dealer branches around the world (internationally).Target Market: 12 offices in Africa, Asia, Latin America and Russia enable staff to address problems by supporting those living and working closest to them. Since 1950, in order to be near the people and organizations they support, the Ford Foundation has maintained overseas offices staffed by a mix of local and foreign nationals. About half of their staffs are in New York and the rest are overseas. They generally remain in locations outside the United States for an extended period, making grants to people who are running innovative programs in their own societies.Some Ford offices make grants in just one country and others work in several. Environmental Factors Competitors: Top Main Competitors are Daimler Chrysler, GM Canada, General Motors Toyota, and all other big Motor Company’s (BMW, Dodge, etc…). Technology: For Ford Motor Company, technology is very helpful to them since all their production is threw technological machineries authorized by specific employees. Environment: Ford Motor Company has contributed some good works towards the environment. Their contributions towards the environment are listed above under the section of CONTRIBUTION TOWARDS THE ENVIRONMENT.Social: As the population grows, the number of family members also grows with it, and more of the mini vans for a family are required. Ford Motor Company’s mini vans are making their sales worth it. ORGANIZATIONAL ANALYSIS S. W. O. T. analysis: InternalExternal Strengths: •Ford Motor Company has a variety of different sub-brands, such as Volvo, Mazda… •Recently, Ford bought Jaguar. Therefore, Jaguar is now Ford Jaguar •Has more than 300,000 employees and 108 plants worldwide •Hybrid cars •Selling products throughout the Internet Opportunities: Ford Motor Company is not national but international company •It has different subsidiaries in different countries in the world •Advertising of different sub-brands as well as Ford’s throughout the T. V. commercials, Magazines, and other types of activities •Make good uses of the Internet Weaknesses: •There are many employers to look after their monthly, or annually salaries. Therefore, there are a lot of human resource managers and more salary for the managers too Threats: •Many Competitors worldwide •Recently, a Net loss of 64 cents per share, or $1. 2 billion CONCLUSION Ford is not nationally, but internationally leading industry in the automotive market •Overall, Ford Motor Company is one of the leading global automotive industry •Ford Motor Company have more than 5 affiliated brands under different brand names, such as Lincoln, Aston Martin, and Mazda, which helps them to be on top •Financially, Ford is one of the top industries in its market •Ford’s Internal Strengths are very strong that’s why they are the leading industry •If Ford Motor Company can benefit from their External Opportunities and can overcome their Threats, then Ford will always stay on top of every single automotive industries in the whole World •Ford Motor Company contributes a lot toward the environment, as well as toward its employers •Overall, by reading this report, we can conclude that Ford today is the leading company in its market, and it is the biggest globalize industry so far BIBLIOGRAPHY http://www. hoovers. com/free/search/simple/xmillion/index. xhtml? which=company&page=1&hoovcountry=us&query_string=ford+motors&x=28&y=6 http://www. ford. com/en/company/default. htm? referrer=home http://media. ford. com/brand. cfm? make_id=96 http://www. ford. com http://www. lincoln. com http://www. mercury. com http://www. mazda. com http://www. volvo. com http://www. landrover. com http://www. jaguar. com http://www. astonmartin. com