Threats Affecting Ford Motor Company

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Threats Affecting Ford Motor Company
Within the Automotive Industry, you have to be able to provide a better product then your competitors. This means selling more units with a new cutting edge product. However, for an automobile manufacturer, this expands more than just the generic car that runs on gas. Ford faces a more competitive market with smaller cars with hybrid engines. On a list of top 10 highest selling hybrid cars in 2012, the Ford Fusion Hybrid ranks at number 10. It sold 3,182 models in that whole car year. Toyota, Ford’s biggest competitor, has both of their top hybrid vehicles at the number 1 and number 2 spots for that same list. The Toyota Camry Hybrid (number 2) sold 21,466 models for that year, and the Toyota Prius (number 1) sold 117,626 models ion that very same year. Ford would need to come up with a plan for a newer model car that can compete with the sales of Toyota.
Fuel prices are a huge driving force when a consumer considers when purchasing a vehicle. When gas prices are high, consumers will consider a more fuel efficient car. When gas prices are low, consumers will be more prone to buy non hybrid cars. This is where the treat lies. Shale gas reserves being created and used for combustion car engines will reduce gas prices for consumers. With a low gas price, Ford would be losing money investing into these fuel efficient cars. Even though they would see a rise in sales from their combustion engine cars, profits from these cars would only be

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