Analysis Of Ford Motor Company ( Fmc ) Essay

     When you think about Ford, an automobile will usually come to mind. Most people don’t think about the man behind that name, Henry Ford. Henry Ford was the man responsible for the Ford Motor Company (FMC). He was also the creator of the invention that changed the mass production industry, the assembly line. As you read on you will learn about Henry Ford’s life, the FMC, and the assembly line.

Ford motor company offers a wealth of variety to the automotive consumer. As they start their second century of business, they are now in a position to appeal to the widest range of potential customers. Each of their automotive brands has a unique personality

Ford Motor Company, American automotive corporation founded in 1903 by Henry Ford and 11 associate investors. (htt28) It is the multinational corporation and the world's third largest automaker based on worldwide vehicle sales. The Company operates in two segments: Automotive and Financial Services. Automotive includes Ford North America, Ford South America, Ford Europe, and Ford Asia Pacific Africa region. Financial services include Ford Motor Credit Company and Other Financial Service. The Company manufactures or distributes automobiles across six continents. Its automotive brands include Ford and Lincoln. Other Financial Services includes a range of businesses, including holding companies and real

Introduction Automobile usage has increased in America and elsewhere in the world. In a research done by Sutherland, J., et al. (2004) “The US has a contributed to 200 million passengers in cars and light truck over the past few years. Further in 1990, studies showed that US cars increased six times faster than human population. The leaders in the automotive industry must adopt some key elements to ensure success in this fast-moving environment. They must invest in knowing their markets, building brands, adapting product strategies and taking long-term view on their goals and objectives. This paper outlines some of the key factors which should be considered. Environmental factors automotive designers and engineers have always said the main threats in the American Automotive industry are the environmental factors such as fuel economy and the clean air regulations. Automotive Emission posed different problems than manufacturing discharges such as coal smoke. Increased fossil-fuel emission has resulted from the million car increase. Irritation smog, which is comprised of carbon monoxide, hydrocarbons, sulfur oxide and other various chemical mixtures are cited in major cities such as Los Angeles. These auto emissions are also said to cause headaches, visual pollutions, contribute to lung cancers and other respiratory disease. In the end, the engineers have designed cars that are better environmental performers, cost effective and fuel efficient to reduce the environmental

Ford entered into the automobile market many years ago and became the oldest car manufacturers. It is the first company which specialized in large scale manufacturing of the cars. The production of Ford cars is done in highly engineered way with the help of moving assembly lines.

Ford Motor Company is America's one of the largest car manufacturer and seller. In year 1987 it faces an external business environment change in the form of new warranty policy announcement by its major competitors General Motor, which changes the current philosophy of warranty in U.S car market. This policy change may have implications not only on Ford’s sales and market share but also on various departments within organization (such as manufacturing, quality assurance, parts and service, and extended service plans) and their dealer network. In answer, Ford executives have to respond through a best suitable course of action by carefully analyzing the current market variables.

In April 2000, Ford Motor Co. announced a shareholder Value Enhancement Plan (VEP) to significantly recapitalize the firm's ownership structure. Ford had accumulated $23 billion in cash reserves and under the VEP would return as much as $10 billion of this cash to shareholders. In exchange for each share currently held, the plan would give stockholders one new share plus the choice of receiving $20 in either cash or additional new Ford common shares. Shareholders electing to receive cash would be taxed on these distributions at capital gain rates. Among other things, the plan provided a means for the Ford family to obtain liquidity without having to dilute their 40% voting interest (even though they own

Similarly government regulations in the United States and Europe are tightening up, consequently requiring cars to be cleaner and more fuel efficient. As a result, the collaboration with BMW is paramount to getting the most fuel efficient vehicles to the market in a timely manner so that GM can harvest a substantial profit. (3) In addition General Motors is working on the next generation of fuel efficient and gasoline free vehicles to help reduce the impact of the vehicle on the environment, while preserving personal mobility, which further indicates its commitment to innovation. (6)

Henry Ford was an engineer from Detroit, Michigan who had an idea. By 1902, Ford had attempted several times to produce a gas powered vehicle, but with little capital, he realized that his attempts were futile. Ford approached a man by the name of Alexander T. Malcomson about the possibility of manufacturing an automobile. Malcomson, a friend of the family and wealthy coal merchant was reluctant at first but finally agreed with Ford, and decided to assit Ford financially with his endeavor. With Malcomsons investment and Ford's engineering skills a partnership was formed and in mid June of 1903, papers of incorporation for the Ford Motor Company were filed in Dearborn, Michigan.

Explain what shareholders would receive in exchange for (a) old common shares, (b) old class B shares, and (c) old shares held in the employee saving plan.

Ford Motor Company is an American automobile manufacturer founded and headquartered in Dearborn, Michigan but incorporated in the state of Delaware. The company was started by Henry Ford in 1903 and is historically famous for the creation and implementation of the assembly line in manufacturing processes. Ford’s mission is to produce and sell automobiles – cars, trucks, SUVs, etc – from the ones initially designed and engineered by Henry Ford all the way through the newer versions created in the last few years. (Profitable Growth for All, 2012)

A man that went by the name of Henry Ford, once said, “I invented nothing new. I simply assembled the discoveries of other men behind whom were centuries of work…” The Ford Motor Company is an American continental automobile maker founded by Henry Ford on June 16, 1903. During the 1920s, this firm marketed automobiles that were reliable, low-cost, easy-to-operate and easier-to-fix device for the masses (Rise of the Automobile). In addition, the Ford Motor Company led the world into the expansion and refinement of the assembly line; revolutionizing our society to greater heights through its mobile products. Meanwhile, the company’s contributions benefited society through the means of the renovation of the suburbs and the invention of new services. Like no other during the 1920s, the Ford Motor Company supplied to the boom of innovations; marking its footprint to a superior society.

Over the years, the U. S. auto industry's market has been experiencing fluctuations due to many reasons including: price, quality and foreign competition. General Motors Corporation (GM) which had been the leading car and truck manufacturer had been experiencing declining market share and facing stiff competition from both U.S manufacturers and foreign imports such as the Asian auto producers that included Toyota, Honda and Nissan. The main reason for increased foreign competition was that foreign cars were more fuel efficient, smaller, less expensive, and often more reliable than their American counterparts.

Founded in 1903, Henry Ford managed to get investor support to open the first manufacturing automobile company in Detroit, Michigan. Ford Motor Company has been known for its mass production of vehicles using a perfected assembly line method and its innovations in the automobile industry. Ford’s famous Model-T was developed as an innovative automobile that could be produced quickly, while keeping the cost to a minimum. This allowed people with a lower income the opportunity to afford an automobile. One of the biggest changes in the automobile industry occurred in 1913 with the introduction of a perfected assembly line method. This assembly line method was the one of the main reasons Ford Motor Company was able to keep the cost of vehicles and the production time to a minimum. Ford also took the first step to increase wages of their employees above the industry standard. Although it was still a very low value, Ford offered $5 per day which was a huge improvement from the $2.34 per day that most companies offered.

The mission statement of Ford is not written because in past decades, U.S. vehicle industries have changed dramatically. However, Ford has a vision statement which can be substituted for mission statement, “People working together as a lean, global enterprise to make people’s lives better through automotive and mobility leadership.”