Ford Motor Company

INTRODUCTION Ford Motor Company or simply Ford Motors, is an American car manufacturer based in Dearborn, Michigan. This company is currently the second largest car manufacturer in the US and ranks as the fifth largest in the world. Aside from its domestic operations, Ford also operates in the markets of South America, Europe, Asia Pacific, Africa, and the Middle East. Given its worldwide operations, Ford Motors could be considered as one of the most successful car makers. However, the company's success did not happen overnight. In fact, it took more than 100 years before Ford was able to earn its current status. The world headquarters of the Ford Motor Company are located in Detroit, Michigan, which is also commonly known as the automobile capital of the world. Ford's Earliest Foundation Ford Motor Company was founded by Henry Ford. The company was actually established with the help of Henry Ford's acquaintance, Alexander Y. Malcomson, a coal dealer, and Malcomson's uncle, John S. Gray, president of the German-American Bank. To further strengthen the newly established company, Malcomson recruited some of his business partners and urged them to invest. Due to Malcomson's success in recruiting investors, the Ford Motor Company was finally established on June 16, 1903, with 12 investors and 1000 shares. Both Ford and Malcomson owned 255 of these shares, while Gray owned 105. The remaining shares were owned by the other 9 investors. Gray became the company's first president, while Ford was elected as vice-president. Under Gray's leadership, the company had started to earn profits. Ford's total profit in October 1, 1903 was calculated to be around $37,000. This profit further increased to $300,000 in 1905. Under Ford's leadership, the company gradually became the largest car maker in the US. During the first few years, Ford as a car manufacturer, was involved in developing and producing its model cars:  The Model A, first car model. Ford had sold a total of 1,750 units from 1903 to 1904. The impressive sales record obtained by the Model A marked the first successes of Henry Ford's business. However, this model was eventually replaced by the Model C in 1904.  The Ford Model C. a refined version of the Model A in 1904, with a sportier look and more powerful engine. This model was replaced by the Model F in 1905.
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Ford developed its first six-cylinder powered vehicle and called it the Model K. particularly when Edsel Ford was charged with being his father's successor. with its first unit leaving the company's assembly line September 27. General Motors and Chrysler were able to grab a significant share of the market from Ford by producing high-quality vehicles and providing credit opportunities to their customers.Ford Motor Company  In 1906. Since it was affordable and middle-class Americans were capable of buying this car. the demand for the model increased. 1908. Ford was able to recover from its previous loses by providing similar opportunities to its customers. Production of the Model T continued until the end of the same year. This was a replacement for the earlier Model B.  Ford's Model T or the T-Model Ford is the company's first affordable vehicle and at the same time one of the most in demand models. Ford's operation expanded into the luxury market division. However. Some of these were very successful. when the company acquired the Lincoln Motor Company on February 2. Ford's stoppage of the production of the Model T and the introduction of the redesigned version of the Model A had placed the company back on track. Page | 2 . The company's gradual decline was caused by:  Its continuous use of the personalized management mechanism that was starting to become obsolete  The company's neglect of consumer demands for more improved vehicles. The rubber cultivated would be used in producing synthetic rubber for use on Ford vehicles. After the overwhelming success of the Model T. The Model K was powered by an in-line 6-cylinder engine that produced up to 40 horsepower. Despite its powerful engine. This was followed by the company's ventures on financing the cultivation of rubber in Brazil in 1928. this venture failed and only caused the company to spend millions of funds. 1922. However. 1908. the Model K was considered a failure due to its expensive price and poor quality. Ford had produced a lot more models. while several other models failed.  The expansion of some of its closest competitors' market share. 1927. Ford Motors after the First World War Ford Motor Company started to lose its dominance in the automotive market a few years after the First World War. Its production started on August 12. In addition to this. The Model T started to establish its iconic image in the automotive market. The 15 millionth unit of the Model T left the company's factory on May 26.

left some scars on Ford Motor Company's image. However. However. there were some allegations that a series of indirect communications between the Nazi government in Germany and Ford still took place. Ford's efforts were effective since the company obtained the 52% ownership of the factories there. In fact. one-third of the trucks used by the Nazi army were produced by Ford Motor Company. Ford Motors during the Second World War  Henry Ford's pacifist mentality had once again guided his company's fate during the Second World War. a lot of Ford workers had lost their jobs. this had subsequently changed after the bombing of Pearl Harbor. As economic conditions worsened. allegations were dismissed due to lack of concrete proofs. This division would handle the mid-priced automotive market's demand for vehicles. the friction between the protesters. all of these expansion efforts were halted by the "Great Depression. Due to this. workers who lost their jobs formed a series of strikes to demand greater support from the company. it took a few more years before Ford Motor Company was able to stabilize its vehicle production. by producing airplane engines. However." Ford Motors during the Great Depression The economic crisis and the collapse of the automotive market in the US.  Henry Ford's relationship with the German Nazi government remained good for a while. Ford was viewed as a company that collaborates with both the Allied and the Nazis and earned a lot of investments from these sources. Henry Ford developed a close working relationship with the Nazi government. This event encouraged Ford to provide support for the Allied Forces' war efforts.Ford Motor Company The company's operation further expanded in 1938. and the police erupted into violence. Due to these strategies.  Ford's direct communications and business ties ended when the US declared war in December 1941. had stopped. particularly in Germany. As a result. To prevent the Nazis from turning the Ford Motor Company's plants in Germany into a nationalized factory. Page | 3 . But after an investigation conducted by the US Treasury Department. In order to stay afloat. this doesn't mean that Ford's operation in Europe. when the Mercury division was established. the company had to reduce its operation and implement mass lay-offs. But. Unfortunately. caused by the Great Depression. Although the Nazi controlled the day-to-day business of these facilities. Ford still remained as the majority owner.

After a few years. Ford Motors had once again experienced internal chaos. the company was also able to establish the Ford Europe in 1967. During this period the Ford family only maintained a 40% controlling interest in the company. Ford Motors in the year 2000 up to the present High-ranking executives that were hired from outside the company and handle its operations continued to come and go. This condition and Henry Ford's death in 1947 forced the company to hire outsiders to handle its day-to-day business. Henry Ford's great-grandson. The hiring eventually weakened the Ford family's grip on the company. became the Chairman and CEO of the company from 2001 to 2005.Ford Motor Company Ford Motors after the Second World War After the Second World War. In 2005. Edsel Ford died in 1943. and the Mustang in 1964.William Clay Ford Jr. However. Polding was replaced by Alex Trotman and remained as the company's head until 1998. Mulally's effective leadership. Ford Motors was still able to produce some of its most popular vehicles. Page | 4 . Harold Polding served as the company's CEO and Chairman from 1990 to 1993. Despite the financial and leadership chaos that the company had experienced during these times. In addition to this. he was faced with financial chaos with company losing about $9 million a month. In 2006. When Henry Ford II became the president. the US government provided assistance to the company. Jacques Nasser replaced Trotman and served until 2001.. was able to pay some of its loans off and continue its production. Mulally from "Boeing" became the company's President and CEO. including the Thunderbird in 1955. Ford Motor Company became a publicly traded company in 1956. The rise and fall of high-ranking executives hired from outside the company continued up to the present. Mulally. the company. Ford Motor Company is now enjoying significant sales profits and a revival of its financial strength. under the leadership of Alan R. the Falcon in 1960. Alan R. Ford Motor Company surprised the world when it announced that the company will offer all of its assets for mortgage since they could no longer handle the company's operations. With Alan R.

We are a leader in environmental responsibility.Ford Motor Company FORD’S VISION To become the world's leading Consumer Company for automotive products and services. The health and safety of our people are paramount. Union/Council. and entrepreneurial spirit. FORD’S VALUES Our business is driven by our consumer focus. and Community Satisfaction  ONE PLAN  Aggressively restructure to operate profitably at the current demand and changing model mix  Accelerate development of new products our customers want and value  Finance our plan and improve our balance sheet  Work together effectively as one team  ONE GOAL An exciting viable Ford delivering profitable growth for all. Dealer. Our integrity is never compromised and we make a positive contribution to society. We respect and value everyone's contribution. global enterprise for automotive leadership. We constantly strive to improve in everything we do. Investor. creativity. resourcefulness. Employee. We are an inspired. we provide superior returns to our shareholders. diverse team. Page | 5 . Guided by these values. as measured by: Customer. FORD’S MISSION  ONE TEAM People working together as a lean. Supplier.

Ford 2000 Vision create program teams focused on the customer while the technical development of noncore commodities was outsourced to the suppliers Within the Ford 2000 environment.Ford Motor Company CHANGE IN LOGO OVER THE YEARS Goal of FORD 2000 reorganization was to create a centralized global engineering stuff that is matrixed to vehicle programs. the company encourage employees to become mini CEO and focus in understanding the financials of the business. Page | 6 . the business aspects of a program often overshadowed the technical solution to the problems since the business aspects were more readily understood. Instead of encouraging employees to technically deep.

Under Ford 2000. There was little functional knowledge sharing between vehicle product lines and almost none across the vehicle centre. Functional organizations within the vehicle centre were almost non existence. As a result. Ford 2000 had completely taken hold of the corporation and there was little remaining of the previous organization. Ford started to see decline in both warranty and customer satisfaction data. the technical proficiency in many areas of the company quickly eroded. Workforce was highly vehicle and customer focused. it is unlikely that they will be promoted above a salary Grade 8. Page | 7 . The corporate buyouts and early retirement force the company to cut the jobs of lower level employees that had spent most of their career in the old organization. Ford often saw a complete redesign of vehicle system on each new vehicle as each vehicle was specifically for its customers with little communication between the other vehicle product lines. By the turn of the century.  An engineer not selected for management roles remains a salary Grade 8 for life and if an employee doesn’t reach management position by certain point in their career. outsourcing of technical engineering work and selling off portions of the company. Many of these employees preferred to stay within the function where there career had been developed.  Combined with proliferation of early retirements and buy-outs. this decision seemed to indicate that their career had stagnated and they were not prime candidates for promotion or career advancement. There was no technical career path. early in the 21st century. As a result.Ford Motor Company Results:  Employees who perform the same job for more than 18-24 months began to feel that their career would stall if they did not move because the company rewarded employees who moved around the company to get a breadth of different experiences rather than remaining in the same job. Lines of communication simply did not exist.  The only people who were promoted to management roles were the ones who had gathered experience in different functions.

The principal selloff was all the remaining noncore engineering functions that were not outsourced. 2001 reorganization  Switched its focus back to core functional areas that Ford has recognized for years while still maintaining light ties to the program. Ford also sold off many aspects of their business that were not considered core to their business.Ford Motor Company After a decade of this process very few low level engineers from the pro Ford 2000 remained and many of the companies functional depth had been removed from the organization.  Significant change in the culture within the company  Employee movement was reduced and training was given to hone their skills to become highly proficient in key technical areas within the company  Technical issues would carry the same importance as business details CHIEF FUNCTIONAL ENGINEER Reports to FUNCTIONAL MANAGER 3-8 FUNCTIONAL SUPERVISORs Director of Vehicle centre 3-8 ENGINEERS Fig: Structure of product development organization Page | 8 .

the influence from the past is still Page | 9 .Ford Motor Company Ford has also implemented projects like Employee Stability Project (ESP) and Technical Maturity Model. There were still some negative feelings felt by some employees when they were moved out of their area of deepest expertise.  The continual additional reorganizational within the functional groups. The employees indentified deeply with the product they design and build. they were still confused on what they were supposed to do. a feeling of pride in the accomplishments of the company and creates a tone of camaraderie for the workforce for having struggled through the bad times together. sent a mixed message to the employees about the importance of employees stability. This gives Ford employees. Objective of ESP project  To develop technical depth and expertise in identified competency areas  To create an infrastructure to value and support the development of engineer expertise and competency  Creating practices and processes that will promote a culture consistent with these goals Objective of TMM  Self evaluate technical job performance  Engage in development discussion with supervisors and mentors  Map personal developmental goals Results  2001 reorganization was well received and most employees understood the reasons behind reorganization  While employees felt that the ESP training was good.  Ford also improved the communication channels between the various functional as well as management levels. The culture of the company is very entrenched and though the culture is slowly evolving. However most engineers felt that having a technical development was important which was reinforced by the management. Company culture Ford has been a key competitor in automated industry and has got through very successful as well as bad times in their sector.

Since Ford is a product driven company. Page | 10 . the engineering organization had the most influence and power over their products. were recognized and rewarded. Employees who put in extra time and performed in an under staff environment created by Ford’s financial and business troubles.Ford Motor Company very evident.

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