The Turnaround Ford Motor Company

1684 Words Oct 2nd, 2008 7 Pages
Ford Motor Company was launched in a converted factory in 1903 with $28,000 in cash from twelve investors. It would go on to become one of the world's largest and most profitable companies. It is one of the largest family-controlled companies in the world and has been in continuous family control for over 100 years. Ford Motor Company is an American multinational corporation and the world's third largest automaker based on worldwide vehicle sales. Its overseas business encompasses only one truly global brand, Volvo of Sweden, other than the Ford brand itself, but it also owns a one-third controlling interest in Mazda. Its former subsidiaries, Jaguar and Land Rover, were sold to Tata Motors of India in March 2008. Lincoln and Mercury are …show more content…
Ford will then be responsible to contribute up to US $600 million to the Jaguar and Land Rover pension plans.
On January 23, 2006, Ford announced its new business strategy, "The Way Forward", which includes resizing the company , dropping some unprofitable and inefficient models, consolidating production lines, shutting factories and eliminating over 30,000 jobs. These cutbacks are in alignment with Ford's approximate 25% decline in U.S. automotive market share since the 1990s.
In September 2006, Alan Mulally was named the new CEO of Ford. Alan Mulally has an engineering degree in Aerospace and an MBA from MIT. He spent 37 years at Boeing, and many credit him with being able to turn around the struggling aerospace company. His critics comment his aerospace experience does not translate well to the automotive industry. In fact, he studied the production model processes of Toyota and incorporated it into Boeing Corporation. He has begun integrating these manufacturing processes into Ford Motor Corp. Mulally has a reputation as a cost-cutter and an efficiency aficionado and has brought that approach to Ford where he shed 46,000 jobs in North America alone. He has solid experience in customer satisfaction, manufacturing, supplier relations, and labor relations.
Mulally has his work cut out for him to turn the struggling car manufacturer around and make it profitable

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