Ford Motor Company Essay

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Ford Motor Company

Strengths

Ford Motor Company is a Multi international Company with 90 plant and facilities selling vehicles in 200 markets. It is the second biggest plant in the world, with approximately 345,000 employees The Ford Motor Company is the Fifth largest vehicle manufacturer in the world and the second in the U.S. with a total (Sales 2010) of 4,988,031 vehicles manufactured including Cars, land craft vehicles (LCV), Heavy Commercial Vehicles (HCV) and Heavy Buses. Ford Motor merges with Hertz Rent-A-Car, the world’s leading vehicle renting organization, operates from approximately 8,100 locations in 143 countries worldwide. Ford Motor Company is in ten place in 2011 Fortune 500 list (Us), with Revenues of (Millions) 128,954.0 and Profits of (Millions) 6,561.0 and in the 2011 Global 500 list, Ford Motors in twenty fifth place. • Ford is a Household name brand

• Has physical presence in all major continents
• Ford motor credit company helps finance, lease and sell insurance customers
•14,400 international patents, copyrights and trademarks
•2nd highest market share in truck sales
•Sponsor special-rate financing programs available only through Ford Credit Programs increase Ford Credit’s financing volume and share of financing sales of their vehicles

Weaknesses

Ford Motors doesn’t have a fuel efficient stander pickup or cargo van, compared to Chevrolet Silverado (Pickup) that gives 20mpg in city and 23mpg in highway and the Chevrolet Express (Van) that gives a 15mpg in city and 20mpg in highway. • Durable good- in rough economical times it is not necessary to replace • If consumers continue to demand vehicles that are relatively large, have high performance, and/or are feature-laden, while regulatory standards require the production of vehicles that are smaller and more economical, the mismatch of supply and demand would have a negative effect on profitability • Market share has declined in many regions of the world over the last year. Overall market share in the United States, including PAG-brand vehicles, has declined in each of the past five years, from 20.5% in 2003 to 15.6% in 2007 •Stock shares have declined, resulting with volume reductions have had an adverse impact on our results of operations Ford Motor warned its European operations may lose $500 million to $600 million this year.

Opportunities

Innovation technologies, Sync with My ford touch is a combine technology, that help and assists drivers for a more comfortable drive experience. The Sync technology consist in integrating Bluetooth- enable cell phones and Mp3 players in to the car, providing hand free call and music selection capabilities using voice activate commands. My ford touch replaces many traditional buttons with clear, colorful and user friendly LCD screens. • Block Exemption Regulation (Europe) – Makes it easier for a dealer to display and sell multiple brands in one store (Ford, Lincoln, Mercury) without the need to maintain separate facilities •Increasing presence in China, with more investment in manufacturing capacity, introduction of new products and expansion of distribution channel •Opened a second assembly plant and new engine plant located in Nanjing, China

Initial capacity of the plant was approximately 160,000 units annually, boosting total annual passenger car production capacity in China to more than 410,000 vehicles
Operates a purchasing office in China to procure components for operations outside of China

Threats
• Decline in overall market share due to
Including increased competition
Industry shift away from traditionally stronger segments (e.g., traditional SUVs and full-size pickups)
Reduced vehicle sales to daily rental companies
•Decrease in commercial fleet sales reflected lower industry volume •Japanese and Korean manufacturers are increasing their production capacity in Europe

Strength

• Ford Motor Company is a Multi international Company with 90 plant and facilities selling vehicles in 200 markets. It is the second biggest plant in the world, with approximately 345,000 employees. (http://www.freeonlineresearchpapers.com/ford-diversity-commitment) , (http://media.ford.com/article_display.cfm?article_id=7670) • The Ford Motor Company is the Fifth largest vehicle manufacturer in the world and the second in the U.S. with a total (Sales 2010) of 4,988,031 vehicles manufactured including Cars, land craft vehicles (LCV), Heavy Commercial Vehicles (HCV) and Heavy Buses. (Oica.net, 2011) (http://oica.net/wp-content/uploads/ranking-2010.pdf) • Ford Motor diversity in Ford Credit is a subsidiary of The Ford Motor Company that finance vehicles to customer and dealers to support Ford Motor Company sales. They also provide financing on Lincoln vehicles, offering: competitive rates, innovative products, flexible terms (http://www.fordcredit.com/companyInfo/profile.jhtml)

• Ford Motor merges with Hertz Rent-A-Car, the world’s leading vehicle renting organization, operates from approximately 8,100 locations in 143 countries worldwide.
• Ford Motor Company is in ten place in 2011 Fortune 500 list (Us), with Revenues of (Millions) 128,954.0 and Profits of (Millions) 6,561.0 (http://money.cnn.com/magazines/fortune/fortune500/2011/full_list/index.html) and in the 2011 Global 500 list, Ford Motors in twenty fifth place. (http://money.cnn.com/magazines/fortune/global500/2011/full_list/index.html)

Weakness

• Ford Explores rollover and firestone tires recalls controversy announced on August, 2000, approximately 14.4 million tires contain a safety-related defect. Harmed Ford brand image.
(http://www.nhtsa.gov/PR/FirestoneRecall) • Ford Motors doesn’t have a fuel efficient stander pickup or cargo van, compared to Chevrolet Silverado (Pickup) that gives 20mpg in city and 23mpg in highway and the Chevrolet Express (Van) that gives a 15mpg in city and 20mpg in highway. (http://www.fueleconomy.gov/feg/bestworstepatrucks.htm) • Ford Motors only has seven subsidiaries, Lincoln, mercury, Mazda, Volvo, Jaguar, Land Rover, Aston Martin.

Opportunities

• Fuel efficient cars, Ford Motor Company is launching the most fuel-efficient cars in the market. The All-new 2012 Ford Focus will be powered by a fuel-efficient 2.0-liter DOHC four-cylinder engine with twin independent variable camshaft timing (Ti-VCT) and direct gasoline injection that will deliver up to a projected 40 mpg highway. The combinations of these technologies helps to lower gas emission but, still have horse power. For a 4 cylinder 2.0 liter engines it is rated at 160 horse power and 146lbs of torque. (http://media.ford.com/article_display.cfm?article_id=33438) • Big donator to charity and victims of natural disasters. October 27, 2000 – Ford Motor Company will donate $1.4 million to the San Diego Environmental Foundation (SDEF) for the preservation, protection and enhancement of the San Eliot Lagoon Ecological Reserve, which is one of San Diego’s and Southern California’s most precious and unique natural resources. (http://media.ford.com/article_display.cfm?article_id=6425)

• Innovation technologies, Sync with My ford touch is a combine technology, that help and assists drivers for a more comfortable drive experience. The Sync technology consist in integrating Bluetooth- enable cell phones and Mp3 players in to the car, providing hand free call and music selection capabilities using voice activate commands. My ford touch replaces many traditional buttons with clear, colorful and user friendly LCD screens. (http://media.ford.com/images/10031/Drive_Smart_HR.pdf) • Driving Technology, Blind Spot Information System (BLIS) gives out three warnings when a vehicle not visible or enters ones blinds spot. The signals consists in a Yellow light appears in the corresponding side view mirror, an audio alert and a message warning displayed. (http://media.ford.com/images/10031/Drive_Smart_HR.pdf) • Rear view camera and Forward Sensing System, helps drives to see on screen when parking in reverse. The Forward Sensing System helps to determine how close are the objects form the vehicle. (http://media.ford.com/images/10031/Drive_Smart_HR.pdf)

• Electric Power-Assisted Steering (EPAS). This technology consists in adapting to the road conditions and help drivers to compensate directional shifts caused by crowned roads surface or steady crosswinds. (http://media.ford.com/images/10031/Drive_Smart_HR.pdf) • Active Park Assistants uses ultrasonic based sensing system and EPAS for parallel parking. (http://media.ford.com/images/10031/Drive_Smart_HR.pdf) • Rain-Sensing Wipes has a optical sensor that auto adjust to the climate conditions. (http://media.ford.com/images/10031/Drive_Smart_HR.pdf) Power train and convenience

• Adaptive cruise control allows the vehicle to set and mating speed without using the pedals. It also has a radar- based system that’s can monitor the vehicle in front up to 600 feet. (http://media.ford.com/images/10031/Drive_Smart_HR.pdf) • Easy fuel or cap less system helps drives when filling the car with gasoline a hassle-free, odor free, and have a more consistent seal compared to traditional manual cap.( http://media.ford.com/images/10031/Drive_Smart_HR.pdf) • Eco-Boost gains of up to 20 percent and reduction of CO2 emissions by as much as 15 percent compared with larger, less efficient engines. (http://media.ford.com/images/10031/Drive_Smart_HR.pdf) • Dual-clutch Power Shift six-speed transmission combines the responsive performance and fuel economy of a manual gearbox with the convenience of a traditional automatic transmission. (http://media.ford.com/images/10031/Drive_Smart_HR.pdf)

Threats
• Government regulations. Do to the pollution and the Global warming caused by the Co2, car manufactures are trying to develop fuel efficient cars. In Jul 29,2011 Major car developers and manufactures joined President Obama to discusses the further in fuel economy and proposed a new Fuel-efficiency standers. Today’s stander is 27.3mpg by 2025 the stander should be at 54.5 mpg. Its estimated that this new “stander” will save a average of $8,000 on fuel bill per vehicle, and will reduce U.S. oil consumption by 2.2 billion barrels per day. (http://news.consumerreports.org/cars/2011/07/government-raises-fuel-economy-standards-to-545-mpg-by-2025.html) • Change of oil price, is one of the most volatile components oil, is very heretical as it prices increases and decreases. Consumer are more aware that fuel efficient vehicle can guarantee more performance for their money.

In 26-07-2011 oil crude open at $99.0 an close$99.6 (http://www.livecharts.co.uk/futures_commodities/oil_prices_historical.php) • Increase of raw materials. This effects the manufacturing of the automobile if the steel components raises then the car will have to be a lot more expensive. According to the World Carbon Steel Transaction Prices in Mar,2011 medium steel sections were $719/Ton in April,2011 it was 926/Ton. (http://www.steelonthenet.com/price_info.html) • Recession is another factor that Ford Motor Company has to battle. As the economy declines in activity, more people are not investing or spending their incomes in new vehicles. It is estimate that the US unemployment rates is at 13.9 million persons a (9.1 percent) http://www.bls.gov/news.release/empsit.nr0.htm)

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