Ford and the World Automobile Industry in 2012

Case 5

Ford and the World Automobile Industry in

2012

Submitted By:

Sarbottam Bhagat

A. Introduction

Ford, an American auto manufacturing company, is one of the fifth largest automaker in the world. The

company was founded by Henry Ford in June 16, 1903. The Ford has two major brand at current: Ford and

Lincoln. Lincoln specializes in building and selling luxury cars. Ford owns a 2.1% stake in Mazda of Japan

8% stake in Aston Martin of the United Kingdom, and a 49% stake in Jiangling of China. Besides, it has

number of joint ventures: two in China (Changan Ford Mazda and Ford Lio Ho), one in Thailand (Auto

Alliance), one in Turkey (Ford Otosan), and one in Russia (Ford Sollers). Ford has approximately 224 sales

point, and has nearly 90 manufacturing plants worldwide. Ford sells a broad range of automobile and an

additional range of luxury automobiles under the Lincoln marque in the United States. Ford specializes in

manufacturing and selling a wide range of trucks, buses, cars, tractors, SUVs, sports cars and other luxury

cars.

B. Ford’s Business Model

In 2007, the One Ford plan was implemented in order to work collaboratively in a single team and under

one plan to achieve common goals that will deliver profitable growth for all. However the main issue

concerning with the ford future profitability was dependent how on Ford will be able to maintain market

share in new and existing demographic location. The main question raised was “Will they be able to

innovate new technology in order to survive in the market?”

On April 1, 2012 Bob Shanks was promoted from Ford motor Company’s controller to Chief Officer. He

was assigned to review financial forecast of Ford from 2012-2016 prepared by Lewis Booth. Ford was able

to maintain and regain its position in 2011 after the crisis in 2007-2008.There were mainly three factors

that can be identified in order to help Ford regain its position. These are:

 Government measures in North America and...