Business Analysis of FORD Motor Co

History

Ford Motor Company was found in June 16, 1903 with the simple idea of making quality, affordable vehicles so people can afford to buy and use them as they were not just a matter of luxury.  Henry Ford was in the root of this new, Detroit-based car manufacturer. On par with 87 other automobile manufacturers this young company had to quickly improvise in order to stay afloat. Many great innovations came to life in 1920’s – Ford was the first car company to introduce a conveyer-belt assembly line which allowed workers to produce complete vehicles in a matter of hours. Ford’s worker’s policies were also notable – higher wages, profit sharing and opportunities for the handicapped were a phenomenon in the industry. In 1919, Henry Ford retired, handing over the leadership to his son, Edsel. Further down the road, in 1943, Henry had to come back to the management position after the death of his son. On September 1st, 1945 Ford resigns conclusively.

Ford Motor Co has a long history and a great experience in the areas of vehicle manufacturing, alternative fuel innovations and electronics. By 1944, during World War II Ford manufactures B-24 aircraft and M-4 tanks for the US Government. Trough Philco, in 1965 Ford cooperated with NASA in their mission of putting a man on the moon.

Property, Financial & Current Lawsuits

As of the end of 2008, Ford Motor Co owned and operated 95 plants, 41 distribution centers/warehouses, 50 engineering/research & development facilities and 72 sales offices worldwide.

The total sales & revenue (the numbers are in millions, except for the stock prices) for the Ford Motor Company by the end of 2007 are $172,455. The same were equal to $160,065 for the year of 2006 and $176,835 for the year of 2005. The Net Income/Loss were reported as -$2,723 for the year of 2007, -$12,613 for the year of 2006 and $1,440 for the year of 2005. The Ford Common Stock was priced by NYSE at high/low $8.96/$7.35 (Q1 2006) and $8.06/$6.17 (Q2 2006) and $9.48/$6.06 (Q3 2006) and $9.19$/6.85 (Q4 2006). The current stock price (as of February 6th, 2009) is $3.00/$2.80.
According to the current 10K report for 2008, there are 3 state lawsuits, 2 class action lawsuits and 3 other lawsuits, currently in process for the company.

Products

In addition to vehicle manufacturing, Ford also produces vehicle parts, accessories and additives. Ford Motor Co is the manufacturer of the vehicles under the brand of ‘Ford’, ‘Lincoln’, ‘Mercury’, and ‘Volvo’. The company also produces car parts, accessories and additives (such as paint and oils) under the ‘Motorcraft’ brand. Fodor Motor Co is also a stockholder of Mazda. Ford Motor Co also supports several Governmental agencies in their development and manufacturing efforts.

Services

Ford Motor Co provides a wide array of services related to the automotive industry. Besides vehicle manufacturing, Ford also provides parts, accessories and additives (such as paint and oils) under the ‘Motorcraft’ make. Ford Credit is the financial service unit of Ford Motor Co which services loans to private and corporate parties. Ford Racing and The Ford Performance Group manufactures, sells and services vehicles & parts for NASCAR, Formula One and off-road enthusiasts.

Management

William Clay Ford, JR is Ford Motor Company’s Executive Chairman since September 1st, 2006. He started his journey within the Ford Company back in 1988 as a Director. Mr. Ford is also a member of the Environmental and Public Policy, Finance committees.

Allan Mulally is Ford Motor Company’s President and CEO since September 1st, 2006. He is also a member of the Finance committee.

Michael E. Bannister is Ford Motor Company’s Executive Vice President. He is also responsible for all operation within the Ford Credit subsidiary of Ford Motor Co.

Markets, Strategy, Research & Competition

As of today, Ford has established their business worldwide. In the 1920s, vehicles by the Detroit based company were mainly directed towards the US market. Later on, especially after the introduction of the assembly line, Ford breaks ground in Europe, Asia-Pacific, South America, Africa and the Middle East. In the beginning continental models would differ from country to country, with time that has changed and nowadays models differ mainly by continent.

The company strategy is to keep vehicles affordable and safe. Ford vehicles are appealing for a wide arrange of individuals, government as well as businesses. The company manufactures a broad spectrum of cars, trucks, vans and SUVs which are being used as daily drivers, NASCAR, rally & sports cars, test vehicles and military & government transport.
Ford Motor Co invests steadily in research and development. The Ford Company is the world’s first vehicle manufacturer to introduce a hybrid SUV. The company also developed many environmentally-friendly concepts, such as soy foam seats, 6-speed variable rate transmissions and fuel cell hybrid electric plug-ins.

The Detroit based company faces sturdy competition, especially in the recent years. Foreign manufacturers such as Toyota, Honda and Hyundai are on par and even ahead in some areas of development, sales and marketing. Domestic rivals such as GM are also a threat.