Ford Essay

1041 Words Sep 12th, 2014 5 Pages
Microeconomics of the Ford Motor Company
Final Paper – ECO201 14EW1
Karen J. Cassady
Southern New Hampshire University

(Brief Summary of paper aprox 150 words) to be added for final draft.

The purpose of this paper will be to explain how the supply and demand as well as the elasticity of demand exists for the automobiles produced by the Ford Motor Company. The early history of the company through the present will be highlighted in an effort to show how the firm became a global leaders in the production of automobiles.

Ford Motor Company The firm that I have chosen for this paper is the Ford Motor Company. The Ford Motor Company has become one of today’s largest most profitable
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The roaring twenties saw many improvements and additions at Ford. By 1919 the Model T held 40% of the domestic market (“Ford Crises of 1920-1921,” 2007). Throughout the 30s and 40s, Ford continued to set the standard for the automotive industry. The company’s first new V-8 engine was debuted in 1932. (Ford Richmond Assembly Plant - Operation during the 1930s) In 1940, while Europe and Asia had gone to war and the United States still struggled with economic depression, the Richmond Branch produced about 100 cars each day. Soon this became a Mercury assembly plant, so five models of Mercury’s including sedans, coupes, and convertibles comprised about one-quarter of Richmond's output. Sales of Ford's 1941 models were among the best ever due largely to the demand created by WWII. (Ford Richmond Assembly Plant – Ford’s Conversion to War Production)
The 50s and 60s saw Ford transition from a family owned company to one that would be publically traded. On January 18, 1956, when the Ford Foundation began to sell its stock in the company. The price was $64.50 per share. (Stock Tools & Information)
The 70s and 80s were difficult times for the once mighty company. After setting a U.S. sales record in 1978, Ford saw its volume plunge more than 45 percent in the next three years. Its market share dropped from 25.5 percent to 19.7 percent in the same span. The losses came large and quick: $1.5 billion in

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