Ford Motor Company

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Ford MOTOR COMPANY

Company profile

Global automotive industry

Headquarter- Dearborn, Michigan

Founded in 1903 by Henry Ford

Ford products…

Employees :176,000 (2010)


operations: Asia Pacific, south America , Europe, Africa
and Middle East
Year 2001?????????
Firestone tire recall

The global economic downturn

Tough competition

Loss of $5.45 billion


But in Europe….............
Continued integration of euro
Higher competition from Japanese
automakers
Because of elimination of quotas
Fiercely competition
Ford in Europe-an historical overview
First foray-1903

First European sales branch-in Paris in 1908

UK branch in 1909

Production in UK assembly palnt-1911

French assembly opertion-1913


Continue…
Establishment of French company-1916

Germany operation began 1925 and year later


an assembly plant was established

Ran as subsidiaries that report to US

 -did not coordinate their policies in a


meaningful way
Continue…….

• In 1967 Ford consider Europe as one common market


known as ford Europe Incorporated
- UK and Germany were no longer considered as
independent organization
- From companies perspective it was best to obliterate
national boundaries
- Allowing to cut engineering cost
- Achieve economies in purchasing and manufacturing
- Ford began designing and assembling similar
automobiles through out the Europe
In 1994 ford announced a new programmed called ford 2000

Merge with North America automotive Operations and


European Automotive Operation

Restructured as ford automotive operation

In 1995, ford announced it was cutting number of engine and


transmission combination used in Worldwide

Adopt product -line focus

Five vehicles centers were established

Europe is responsible for small and midsize cars


What happen to Ford 2000???

 Profits were down

Market share was slipping

Customers complaints
Transformation strategy
In an attempt to bring greater
autonomy ford 2000 was replaced by
“transformation strategy”
Goal-To get higher profit in 2002
Turn factories into ‘flex factories’
Advantage of loosening national
boundaries
Will ford success in Europe last?
EU drop quotas on Japanese cars ,
Honda and Nissan Products
Euro strengthened and led to lower
profits
High cost cutting
Would Ford have done what it did in
Europe, if there had been no EU????

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