Ford Motor Company

About the Company- Ford Motor Company (commonly known as Ford) is an American multinational
automobile manufacturer headquartered in Dearborn, Michigan, United States. It was founded by
Henry Ford and incorporated on June 16, 1903. The company sells automobiles and commercial
vehicles under the Ford brand and luxury cars under its Lincoln luxury brand.

Vision- To become the world’s most trusted company

Mission- To strengthen communities and help make people’s lives better. The purpose is to drive
human progress through freedom of movement.

Problem Statement-

Ford’s stock dropped more than 9 percent when it reported earnings that missed both Wall Street’s
and its own forecasts.

This was due to the rise of EV prices in 2022 because of a shortage of chips, and rising costs for
battery material. EVs remain significantly more expensive than cars and trucks with traditional
engines due to which Ford had to lower its EV prices and thus miss estimates.

Ford warned about disappointing third-quarter results in September, citing supply-chain issues, but
reiterated its guidance for the full year. But for the fourth quarter, Ford provided no comparable
warning. Supply-chain issues were factored in, but executives said that the issue was “operational”
as well. They see further downside from the drag on earnings from the ramping EV volumes, which
management has noted would be dilutive to margin until the coming years. While the company may
see some demand benefits for its EV on the consumer side due to high petrol prices, it will not be
producing its own batteries until 2025-26 and as such may not receive large direct incentives from
the government until then.

Ford struggles to understand the lack of visibility through the supply base, especially within a short
timeframe and to this level of severity. It plans to boost production of its EV this year, even as it
continues to struggle with supply chain problems, to sell gives the company a reason to keep prices
even with a key competitor, Tesla. “They want to keep the momentum going”

As a business consultant, make a PowerPoint presentation on how Ford can improve its supply chain
problem and prove to be sustainable.