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Ford Motor Company is an than any other automaker. Ford Vehicles snare the most quality awards in J.D Power survey ''Detroit News''. Retrieved on June 6, 2007. Based in Dearborn, Michigan , a suburb of Detroit , the automaker was founded by Henry Ford and incorporated in June 16, 1903. Ford now encompasses many global brands, including Lincoln and Mercury of the US, Jaguar and Land Rover of the UK , and Volvo of Sweden. Ford also owns a one-third controlling interest in Mazda . Ford has been one of the world's Ten Largest corporations by revenue and in 1999 ranked as one of the world's most profitable corporations, and the number two automaker worldwide. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce, especially elaborately engineered manufacturing sequences typified by moving Assembly Line s. Henry Ford 's combination of highly efficient factories, highly paid workers, and low prices revolutionized manufacturing and came to be known around the world as Fordism by 1914 . HISTORY (ca. 1919)]] See Also: History of Ford Motor Company Ford was launched in a converted factory in 1903 with $28,000 in cash from twelve investors, most notably John Francis Dodge and Horace Elgin Dodge who would later found the Dodge Brothers Motor Vehicle Company. During its early years, the company produced just a few Model T's a day at its factory on Mack Avenue in Detroit, Michigan. Groups of two or three men worked on each car from components made to order by other companies. Henry Ford was 40 years old when he founded the Ford Motor Company, which would go on to become one of the largest and most profitable companies in the world, as well as being one of the few to survive the Great Depression. The largest family-controlled company in the world, the Ford Motor Company has been in continuous family control for over 100 years. CORPORATE GOVERNANCE Members of the board as of early 2007 are: Chief Sir John Bond , Richard Manoogian , Stephen Butler , Ellen Marram , Kimberly Casiano , Alan Mulally (President and CEO), Edsel Ford II , Homer Neal , William Clay Ford, Jr. , Jorma Ollila , Irvine Hockaday, Jr. , John L. Thornton and William Clay Ford (Director Emeritus).http://www.ford.com/en/company/corporateGovernance/boardOfDirectors.htm The main corporate officers are: Lewis Booth (Executive Vice President, Chairman ( PAG ) and Ford of Europe), Mark Fields (Executive Vice President, President Americas ), Donat Leclair (Executive Vice President and CFO ), Mark A. Schulz (Executive Vice President, President Operations ) and Michael E. Bannister (Group Vice President; Chairman & CEO Ford Motor Credit ).http://www.ford.com/en/company/corporateGovernance/officers.htm. Paul Mascarenas (Vice President of Engineering, The Americas Product Development) NEW DIRECTIONS FOR THE TWENTY-FIRST CENTURY During the mid to late 1990s, Ford sold large numbers of vehicles, in a booming American economy with soaring stock market and low fuel prices. With the dawn of the new century, legacy healthcare costs, higher fuel prices, and a faltering economy led to falling market shares, declining sales, and sliding profit margins. Most of the corporate profits came from financing consumer automobile loans through Ford Motor Credit Company . Ford fighting to keep its shine By 2005, corporate bond rating agencies had downgraded the bonds of both Ford and GM to junk status GM, Ford Bond Ratings Cut to Junk Status , citing high U.S. health care costs for an aging workforce, soaring gasoline prices, eroding market share, and dependence on declining SUV sales for revenues. Profit margins decreased on large vehicles due to increased "incentives" (in the form of rebates or low interest financing) to offset declining demand. Rebate wars In the face of falling truck and SUV sales, Ford moved to introduce a range of new vehicles, including " announced that it will team up with Southern California Edison (SCE) to examine the future of Plug-in Hybrid s in terms of how home and vehicle energy systems will work with the electrical grid. Under the multi-million-dollar, multi-year project, Ford will convert a demonstration fleet of Ford Escape Hybrid s into plug-in hybrids, and SCE will evaluate how the vehicles might interact with the home and the utility's electrical grid. Some of the vehicles will be evaluated "in typical customer settings," according to Ford. http://www.eere.energy.gov/news/enn.cfm#id_11093 http://media.ford.com/newsroom/release_display.cfm?release=26326 In December 2006, the company raised its borrowing capacity to about $25 billion, placing substantially all corporate assets as collateral to secure the line of credit Ford Bets The House . Chairman Bill Ford has stated that "bankruptcy is not an option" Ford CEO: Bankruptcy 'Not an Option' , but economists have stated that the company's impending contract renewal with the United Auto Workers in the summer of 2007 could be brutal Difficult 2007 predicted for auto industry . The UAW has vowed to attempt to retain the jobs banks, a system which retains idled workers on the payroll, rather than laying them off, in order to maintain contracted US employment levels. The automaker reported a net loss of $12.7 billion during 2006, and has estimated that it will not return to profitability until 2009. Ford hit by record $12.7bn loss However, Ford surprised Wall Street in posting a 750 million dollar profit in the second quarter of 2007, a change largely atttributed to the sale of Aston Martin and cost-cutting. Ford has expressed a continued interest in the selling of Land Rover and Jaguar . Now only until recently Ford has expressed that they will be divesting the entire PAG including Volvo Personvagnar AB before winter of 2007. Ford posts surprise $750m profit "The Way Forward" See Also: The Way Forward In the latter half of 2005, Chairman Bill Ford asked newly-appointed Ford Americas Division President Mark Fields to develop a plan to return the company to profitability. Fields previewed the Plan, dubbed ''The Way Forward'', at the December 7 , 2005 board meeting of the company; and it was unveiled to the public on January 23 , 2006 . " The Way Forward " includes resizing the company to match current market realities, dropping some unprofitable and inefficient models, consolidating production lines, and shutting fourteen factories and cutting 30,000 jobs. 1. These cutbacks are consistent with Ford's roughly 25% decline in U.S. automotive market share since the mid-late 1990s. Ford's target is to become profitable again in 2009, a year later than projected. Ford's realignment also includes the sale of its wholly owned Subsidiary , Hertz Rent-a-Car to a Private Equity group for $15 billion in cash and debt acquisition. The sale was completed on December 22 2005 . A Joint Venture with Mahindra And Mahindra Limited of India ended with the sale of Ford's 15 percent stake in 2005. Chairman and Chief Executive Officer Ford also became President of the company in April 2006, with the retirement of Jim Padilla . Five months later, in September, he stepped down as President and CEO, and naming Alan Mulally as his successor. Bill Ford continues as Executive Chairman, along with an executive operating committee made up of Mulally, Mark Schulz , Lewis Booth , Don Leclair , and Mark Fields . BRANDS AND MARQUES Today, Ford Motor Company manufactures automobiles under several names including Lincoln and Mercury in the United States. In 1958, Ford introduced a new Marque , the Edsel , but poor sales led to its discontinuation in 1960. Later, in 1985, the Merkur brand was introduced; it met a similar fate in 1989. Ford has major manufacturing Operations in Canada , Mexico , the United Kingdom , Germany , Brazil , Argentina , Australia , the People's Republic Of China , and several other countries, including South Africa where, following divestment during Apartheid , it once again has a wholly owned subsidiary. Ford also has a cooperative agreement with Russian automaker GAZ . Ford's ''FoMoCo'' parts division sells aftermarket parts under the Motorcraft brand name. Ford's non-manufacturing operations include organizations such as automotive finance operation Ford Motor Credit Company . Ford also sponsors numerous events and sports facilities around the nation, most notably Ford Center in downtown Oklahoma City and Ford Field in downtown Detroit . Overall the Ford Motor Company controls the following operational car marques: Ford, Jaguar , Land Rover , Lincoln , Mazda , Mercury , and Volvo ; Jaguar, Land Rover, and Volvo are currently part of the Premier Automotive Group . GLOBAL MARKETS Initially, Ford models sold outside the U.S. were essentially versions of those sold on the home market, but later on, models specific to Europe were developed and sold. Attempts to globalize the model line have often failed, with Europe's Ford Mondeo selling poorly in the United States, while U.S. models such as the Ford Taurus have fared poorly in Japan and Australia, even when produced in Right Hand Drive . The small European model Ka , a hit in its home market, did not catch on in Japan, as it was not available as an automatic. The Mondeo was dropped by Ford Australia , because the segment of the market in which it competes had been in steady decline, with buyers preferring the larger local model, the Falcon . One recent exception is the European model of the Focus , which has sold strongly on both sides of the Atlantic . Europe History At first, Ford in Germany and the United Kingdom built different models from one another until the late 1960s, with the Ford Escort and then the Ford Capri being common to both companies. Later on, the Ford Taunus and Ford Cortina became identical, produced in Left Hand Drive and right hand drive respectively. Rationalization of model ranges meant that production of many models in the UK switched to elsewhere in Europe, including Belgium and Spain as well as Germany. The Ford Sierra replaced the Taunus and Cortina in 1982, drawing criticism for its radical aerodynamic styling, which was soon given nicknames such as "Jellymould" and "The Salesman's Spaceship." Increasingly, Ford Motor Company has looked to Ford of Europe for its "world cars," such as the Mondeo, Focus, and Fiesta , although sales of European-sourced Fords in the U.S. have been disappointing. In Asia , models from Europe are not as competitively priced as Japanese-built rivals, nor are they perceived as reliable. The Focus has been one exception to this, which has become America's best selling compact car since its launch in 2000. In February 2002 , Ford ended car production in the UK. It was the first time in 90 years that Ford cars had not been made in Britain, although production of the Transit van continues at the company's Southampton facility, engines at Bridgend and Dagenham , and transmissions at Halewood . Development of European Ford is broadly split between Dunton in Essex (powertrain, Fiesta/Ka, and commercial vehicles) and Cologne (body, chassis, electrical, Focus, Mondeo) in Germany. Ford also produced the Thames range of commercial vehicles, although the use of this brand name was discontinued circa 1965. It owns the Jaguar and/or Land Rover car plants in Britain; Ford's former Halewood Assembly Plant was converted for production of the Jaguar X-Type and currently also assembles Land-Rover's Freelander 2. Jaguars are also assembled at Castle Bromwich, Birmingham while the rest of the Land-Rover range is assembled at Solihull, near Birmingham. Elsewhere in continental Europe, Ford assembles the Mondeo range in Genk ( Belgium ), Fiesta in Valencia ( Spain ) and Cologne ( Germany ), Ka in Valencia, and Focus in Valencia, Saarlouis (Germany) and Vsevolozhsk ( Russia ). Transit production is in Kocaeli ( Turkey ), Southampton (UK), and Transit Connect in Kocaeli . Ford also owns a joint-venture production plant in Turkey . Ford-Otosan, established in the 1970s, manufactures the Transit Connect compact panel van as well as the "Jumbo" and long wheelbase versions of the full-size Transit. This new production facility was set up near Kocaeli in 2002, and its opening marked the end of Transit assembly in Genk. Another joint venture plant near Setubal in Portugal , set up in collaboration with Volkswagen , assembles the Galaxy people carrier as well as its sister ship, the VW Sharan . Ford Europe has broken new ground with a number of relatively futuristic car launches over the last 50 years. Its 1959 Anglia two-door saloon was one of the most quirky-looking small family cars in Europe at the time of its launch, but buyers soon became accustomed to its looks and it was hugely popular with British buyers in particular. It was still selling well when replaced by the more practical Escort in 1967 . The third incarnation of the Ford Escort was launched in 1980 and marked the company's move from rear-wheel drive saloons to front-wheel drive hatchbacks in the small family car sector. It also offered levels of style, comfort and refinement which were almost unmatched on comparable cars of this era. It was a huge success all over Europe and it was Britain's most popular car for most of its 10-year production life. The fourth generation Escort was produced from 1990 until 2000 , although its successor - the Focus - had been on sale since 1998 . On its launch, the Focus was arguably the most dramatic-looking and fine-handling small family cars on sale, and sold in huge volumes right up to the launch of the next generation Focus at the end of 2004 . The 1982 Ford Sierra - replacement for the long-running and massively popular Cortina and Taunus models - was a style-setter at the time of its launch. Its ultramodern aerodynamic design was a world away from a boxy, sharp-edged Cortina, and it was massively popular just about everywhere it was sold. A series of updates kept it looking relatively fresh until it was replaced by the front-wheel drive Mondeo at the start of 1993 . The first two incarnations of the Mondeo were well-built, refined and reliable family cars that attracted strong sales, but the third incarnation (launched in 2007 ) took the large family car market to new heights in terms of build quality, refinement, comfort, equipment, driver appeal and value for money. The rise in popularity of small cars during the 1970s saw Ford enter the mini-car market in 1976 with its Fiesta hatchback. Most of its production was concentrated at Valencia in Spain , and the Fiesta sold in huge figures from the very start. An update in 1983 and the launch of an all-new model in 1989 strengthened its position in the small car market. The second generation Fiesta was significantly updated twice before an all-new model was launched in 2002 , and over the years it has become more refined, spacious, better-built and more enjoyable to drive. Asia Pacific , Vietnam (August 2005)]] In New Zealand and Australia , the popular Ford Falcon was long considered the average family car and is considerably larger than the Mondeo, Ford's largest car sold in Europe. Between 1960 and 1972, the Falcon was based on a U.S. Ford of that name, but since then has been entirely designed and manufactured locally. Like its General Motors rival, the Holden Commodore , the 4.0 L Falcon retains rear wheel drive. High performance variants of the Falcon running locally-built engines produce up to 390 hp. A Ute (short for "utility," known in the US as Pickup Truck ) version is also available with a similar range of drivetrains. In addition, Ford Australia sells highly-tuned Falcon sedans and utes through its performance car division, Ford Performance Vehicles . These cars produce over 400 hp and are built in small numbers to increase their value as collectors' cars. In Australia, the Commodore and Falcon have traditionally outsold all other cars and comprise over 20% of the new car market. In New Zealand, Ford was second in market share in the first eight months of 2006 with 14.4 per cent.3 This is all set to change with a shift away from local manufacturing and assembly: 2007 second quarter has seen Ford Australia cut their prestige (LWB) models and more recently, announced closure of their key engine manufacturing. This is due partly to drops in sales with stiff competition from Toyota's new Aurion and an updated Mitsubishi 380, both taking a large piece of the local family sedan market. Ford is betting on growth in small car sales with the Focus which it plans to assemble locally, and the popular Territory (Falcon-based) SUV. Ford's presence in Asia has traditionally been much smaller. However, with the acquisition of a stake in Japanese manufacturer Mazda in 1979, Ford began selling Mazda's Familia and Capella (also known as the 323 and 626 ) as the Ford Laser and Telstar . The Laser was one of the most successful models sold by Ford in Australia, and outsold the Mazda 323, despite being almost identical to it. The Laser was also built in Mexico and sold in the U.S. as the Mercury Tracer , while the 1991 (and on through the end of the model in the early 2000s) American Ford Escort (and 1991-on Tracer) was based on the Laser/Mazda 323, assembled in the US and Mexico. Through its relationship with Mazda, Ford also acquired a stake in South Korea n manufacturer Kia , which built the (Mazda-based) Ford Festiva from 1988-1993, and the Ford Aspire from 1994-1997 for export to the United States, but later sold their interest to Hyundai . Kia continued to market the Aspire as the Kia Avella, later replaced by the Rio and once again sold in the US. Ironically, Hyundai also manufactured the Ford Cortina until the 1980s. Ford also has a joint venture with Lio Ho in Taiwan , which assembled Ford models locally since the 1970s. Ford came to India in 1998 with its Ford Escort model, which was later replaced by locally produced Ford Ikon in 2001. It has since added Fusion, Fiesta, Mondeo and Endeavour to its product line. South America In South America , Ford has had to face protectionist government measures in each country, with the result that it built different models in different countries, without particular regard to rationalization or economy of scale inherent to producing and sharing similar vehicles between the nations. In many cases, new vehicles in a country were based on those of the other manufacturers it had entered into production agreements with, or whose factories it had acquired. For example, the Corcel and Del Rey in Brazil were originally based on Renault vehicles. In 1987, Ford merged its operations in Brazil and Argentina with those of Volkswagen to form a company called Autolatina , with which it shared models. Sales figures and profitability were disappointing, and Autolatina was dissolved in 1995. With the advent of Mercosur , the regional common market, Ford was finally able to rationalize its product line-ups in those countries. Consequently, the Ford Fiesta and Ford EcoSport are only built in Brazil , and the Ford Focus only built in Argentina, with each plant exporting in large volumes to the neighboring countries. Models like the Ford Mondeo from Europe could now be imported completely built up. Ford of Brazil produces a pick-up truck version of the Fiesta, the Courier , which is also produced in South Africa as the Ford Bantam in Right Hand Drive versions. Africa and Middle East In Africa Ford's market presence has traditionally been strongest in South Africa and neighboring countries, with only trucks being sold elsewhere on the continent. Ford in South Africa began by importing kits from Canada to be assembled at its Port Elizabeth facility. Later Ford sourced its models from the UK and Australia, with local versions of the Ford Cortina including the XR6, with a 3.0 V6 engine, and a Cortina 'bakkie' or pick-up, which was exported to the UK. In the mid-1980s Ford merged with a rival company, owned by Anglo American , to form the South African Motor Corporation ( Samcor ). Following international condemnation of Apartheid , Ford divested from South Africa in 1988, and sold its stake in Samcor, although it licensed the use of its brand name to the company. Samcor began to assemble Mazdas as well, which affected its product line-up, which saw the European Fords like the Escort and Sierra replaced by the Mazda -based Laser and Telstar . Ford bought a 45 per cent stake in Samcor following the demise of apartheid in 1994, and this later became, once again, a wholly owned subsidiary, the Ford Motor Company of Southern Africa. Ford now sells a local sedan version of the Fiesta (also built in India and Mexico), and the Focus and Mondeo Europe. The Falcon model from Australia was also sold in South Africa, but was dropped in 2003. |
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