Ford Motor Company (NYSE: F) is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Asto Martin in the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2010 Ford sold Volvo to Geely Automobile. Ford discontinued the Mercury brand after the 2011 model year. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's methods came to be known around the world as Fordism by 1914. Ford is the second largest automaker in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010. At the end of 2010, Ford was the fifth largest automaker in Europe. Ford is the eighthranked overall American-based company in the 2010 Fortune 50BNB0 list, based on global revenues in 2009 of $118.3 billion. In 2008, Ford produced 5.532 million automobiles and employed about 213,000 employees at around 90 plants and facilities worldwide. During the automotive crisis, Ford's worldwide unit volume dropped to 4.817 million in 2009. In 2010, Ford earned a net profit of $6.6 billion and reduced its debt from $33.6 billion to $14.5 billion lowering interest payments by $1 billion following its 2009 net profit of $2.7 billion. Starting in 2007, Ford received more initial quality survey awards from J. D. Power and Associates than any other automaker. Five of Ford's vehicles ranked at the top of their categories and fourteen vehicles ranked in the top three. HISTORY: The Ford Motor Company was launched in a converted factory in 1903 with $28,000 in cash from twelve investors, most notably John and Horace Dodge (who would later found their own car company). Later Ford realized it would be better if he manufactured all of his company's automotive parts himself instead of using parts from aftermarket sources which lead to the production of the assembly line 1908. Henry's first attempt under his name was the Henry Ford Company on November 3, 1901, which became the

Cadillac Motor Company on August 22, 1902. In 1908 Ford During its early years, the company produced just a few cars 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 world's largest and most profitable companies, as well as being one to survive the Great Depression. As one of the largest family-controlled companies 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 2011 are: Richard A. Gephardt, Stephen Butler, Ellen Marram, Kimberly Casiano, Alan Mulally (President and CEO), Edsel Ford II, Homer Neal, William Clay Ford Jr. (Executive Chairman), Jorma Ollila, Irvine Hockaday Jr., John L. Thornton, and William Clay Ford, Sr. (Director Emeritus). The main corporate officers are: Lewis Booth (Executive Vice President, Chairman (PAG) and Ford of Europe), Mark Fields (Executive Vice President, President of The Americas), Donat Leclair (Executive Vice President and CFO), Mark A. Schulz (Executive Vice President, President of International Operations), and Michael E. Bannister (Group Vice President; Chairman & CEO Ford Motor Credit).Paul Mascarenas (Vice President of Engineering, The Americas Product Development) MARKET DEVELOPERS: 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. By 2005, corporate bond rating agencies had downgraded the bonds of both Ford and GM 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. In the face of demand for higher fuel efficiency and falling sales of minivans, Ford moved to introduce a range of new vehicles, including "Crossover SUVs” built on unibody car platforms, rather than more bodyon-frame chassis. In developing the hybrid electric powertrain technologies for the Ford Escape Hybrid SUV, Ford licensed similar Toyota hybrid technologies to avoid patent infringements. Ford announced that it will team up with electricity supply company Southern California Edison (SCE) to examine the future of plug-in hybrids 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 Hybrids 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. 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. Chairman Bill Ford has stated that "bankruptcy is not an option" .In order to control its skyrocketing labor costs (the most expensive in the world), the company and the United Auto Workers , representing approximately 46,000 hourly workers in North America, agreed to a historic contract settlement in November 2007 giving the company a substantial break in terms of its ongoing retiree health care costs and other economic issues. The agreement includes the establishment of a company-funded, independently run Voluntary Employee Beneficiary Association (VEBA) trust to shift the burden of retiree health care from the company's books, thereby improving its balance sheet. This arrangement took effect on January 1, 2010. As a sign of its currently strong cash position, Ford contributed its entire current liability (estimated at approximately US$5.5 Billion as of December 31, 2009) to the VEBA in cash, and also pre-paid US$500 Million of its future liabilities to the fund. The agreement also gives hourly workers the job security they were seeking by having the company commit to substantial investments in most of its factories. The automaker reported the largest annual loss in company history in 2006 of $12.7 billion, and estimated that it would not return to profitability until 2009. However, Ford surprised Wall Street in the second quarter of 2007 by posting a $750 million profit. Despite the gains, the company finished the year with a $2.7 billion loss, largely attributed to finance restructuring at Volvo.

On June 2, 2008, Ford sold its Jaguar and Land Rover operations to Tata Motors for $2.3 billion. In January 2008, Ford launched a website listing the ten Built Ford Tough rules as well as a series of webisodes that parodied the TV show COPS .During November 2008, Ford, together with Chrysler and General Motors, sought financial aid at Congressional hearings in Washington, D.C. in the face of worsening conditions caused by the automotive industry crisis. The three companies presented action plans for the sustainability of the industry. The Detroit based automakers were unsuccessful at obtaining assistance through Congressional legislation. GM and Chrysler later received assistance through the Executive Branch from the T.A.R.P. funding provisions.On December 19, the cost of credit default swaps to insure the debt of Ford was 68 percent the sum insured for five years in addition to annual payments of 5 percent. That means it costs $6.8 million paid upfront to insure $10 million in debt, in addition to payments of $500,000 per year. In January 2009, Ford announced a $14.6 billion loss in the preceding year, making 2008 its worst year in history. Still, the company claimed to have sufficient liquidity to fund its business plans and thus, did not ask for government aid. Through April 2009, Ford's strategy of debt for equity exchanges, erased $9.9 B in liabilities (28% of its total), in order to leverage its cash position. These actions yielded Ford a $2.7 billion profit in fiscal year 2009, the company's first full-year profit in four years. 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. These cutbacks are consistent with Ford's roughly 25% decline in U.S. automotive market share since the mid-late 1990s. In 2010, Ford earned a net profit of $6.6 billion and reduced its debt from $33.6 billion to $14.5 billion lowering interest payments by $1 billion following its 2009 net profit of $2.7 billion. In the U.S., the F-Series is the best selling vehicle for 2010. Ford sold 528,349 F-Series trucks during the year, a 27.7% increase over 2009, out of a total sales

In 1958. Ford introduced a new brand. Trucks sales accounts for a big slice of Ford's profits. Turkey. Australia. Brazil. it once again has a wholly owned attracted at least 11 million visitors annually by 2008 according to a Compete. or every one out of four vehicles Ford sold. 2007. ended with Ford buying out Mahindra's remaining stake in the company in 2005. including South Africa where. Mark Schulz. called Mahindra Ford India. according to USA Today. and naming Alan Mulally as his successor. Mexico. and several other countries.retaining a small minority stake.9 million vehicles. he stepped down as President and CEO. A 50–50 joint venture with Mahindra & Mahindra Limited of India. and bought Volvo Cars of Sweden in 1999. Bill Ford continues as Executive Chairman.selling . and Mark Fields. Ford had previously upped its stake to 72% in 1998. In 1985. Don Leclair. Five months later. The domain ford. Germany. but sold it on March 12. along with an executive operating committee made up of Mulally. the People's Republic of China. in September. Limited (MIFL). Ford acquired British sports car maker Aston Martin in survey. 2005. Lewis Booth. The Mercury brand was also introduced by Ford in 1939 but poor sales also led to its discontinuation in 2010. Ford's realignment also includes the sale of its wholly owned subsidiary.of 1. the United Kingdom. the Merkur brand was introduced to market Fords from Europe in the United States. the Edsel. Chairman and Chief Executive Officer Ford also became President of the company in April 2006. The sale was completed on December 22. following divestment during apartheid. Argentina. it met a similar fate in 1989. with the retirement of Jim Padilla. Ford also has a cooperative agreement with Russian automaker GAZ. Hertz Rent-a-Car to a private equity group for $15 billion in cash and debt acquisition. Ford has major manufacturing operations in Canada. but poor sales led to its discontinuation in 1960. BRANDS : Ford Motor Company manufactures automobiles under its own name and as Lincoln in the United States.

In November 2008 it reduced its 33. which has sold strongly on both sides of the Atlantic. citing the reduction of ownership would allow greater flexibility to pursue growth in emerging markets. The small European model Ka. On November 18. The Mondeo was dropped by Ford Australia. with buyers preferring the larger local to Zhejiang Geely Holding Group in 2010. Ford also sponsors numerous events and sports facilities around the US.S.4% non-controlling interest. did not catch on in Japan. to a 13. Ford's FoMoCo parts division sells aftermarket parts under the Motorcraft brand name.S. One recent exception is the European model of the Focus. models specific to Europe were developed and sold. It shares an American joint venture plant in Flat Rock. Ford and Mazda remain strategic partners through joint ventures and exchanges of technological information. It has spun off its parts division under the name Visteon.4% controlling interest in Mazda of Japan. but later on. GLOBAL MARKETS: Initially. . models such as the Ford Taurus have fared poorly in Japan and Australia. while U. Attempts to globalize the model line have often failed. Ford's non-manufacturing operations include organizations such as automotive finance operation Ford Motor Credit Company. a hit in its home market. were essentially versions of those sold on the home market. Michigan called Auto Alliance with Mazda. even when produced in right hand drie. as it was not available as an automatic. the Falcon. Ford sold the United Kingdom-based Jaguar and Land Rover companies and brands to Tata Motors of India in March 2008. because the segment of the market in which it competes had been in steady decline. with Europe's Ford Mondeo selling poorly in the United States as the Ford Contour. most notably Ford Center (now Chesapeake Energy Arena) in downtown Oklahoma City and Ford Field in downtown Detroit. Overall the Ford Motor Company controls the Ford and Lincoln car brands. 2010. Ford reduced their stake further to just 3%. Ford Motor Company models sold outside the U.

. and commercial vehicles) and Cologne (body. Europe A British Ford dealership in Wetherby . which was soon given nicknames such as "Jellymould" and "The Salesman's Spaceship. The Focus has been one exception to this. produced in left hand drivE and right hand drive respectively. although production of the Transit van continues at the company's Southampton facility." Increasingly. an increase of 17% from a year earlier.In the first five months of 2010.6 million cars and light trucks. vehicle sales of Ford increased 24%. which has become America's best selling compact car since its launch in 2000. In the first seven months of 2010. Rationalisation of model ranges meant that production of many models in the UK switched to elsewhere in Europe. Development of European Ford is broadly split between Dunton in Essex (powertrain. electrical. Focus. Fleet sales of Ford for the same period rose 35% to 386. In February 2002. At first. Ford reported that 37% of its sales in May came from fleet sales when it announced its sales for the month increased 23%. Ford in Germany and Ford in Britain built different models from one another until the late 1960s. Mondeo) in Germany. Sales to individual customers at dealerships have increased 13%. the Ford Motor Company has looked to Ford of Europe for its "world cars". Fleet sales account for 39 percent of Chrysler's sales and 31 percent for GM's. Ford also produced the Thames range of commercial vehicles. such as the Mondeo. rose to 4.S. including retail and fleet sales. Focus. and transmissions at Halewood. West Yorkshire. The Ford Sierra replaced the Taunus and Cortina in 1982. and Fiesta. It was the first time in 90 years that Ford cars had not been made in Britain. Fiesta/Ka. Ford ended car production in the UK. including Belgium and Spain as well as Germany.S. although sales of European-sourced Fords in the U. although the use of this brand name was discontinued circa 1965.000 units while retail sales increase 19%. The rise was mainly caused by the return of commercial customers that had all but stopped buying in 2009 during the recession. drawing criticism for its radical aerodynamic styling. auto sales in the U. with the Ford Escort and then the Ford Capri being common to both companies. while fleet sales have jumped 32%. have been disappointing. Later on. engines at Bridgend and Dagenham. the Ford Taunus and Ford Cortina became identical. chassis.

and Transit Connect in Kocael. On its launch. manufactures the Transit Connect compact panel van as well as the "Jumbo" and long-wheelbase versions of the full-size Transit. the VW Sharan and SEAT Alhambra. Ford Transit Connect will be Ford's first model produced in Craiova. It was still selling well when replaced by the more practical Escort in 1967. and sold in huge volumes right up to the launch of the next generation Focus at the end of 2004. and Focus in Valencia. in 2010. followed.Elsewhere in continental Europe. Fiesta in Valencia (Spain) and Cologne (Germany). This new production facility was set up near Kocaeli in 2002. established in the 1970s. Transit production is in Kocaeli (Turkey). by low-capacity car engines and a new small class car. Romania. . 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. Saarlouis (Germany) and Vsevolozhsk (Russia). Ford-Otosan. Ford assembles the Mondeo range in Genk (Belgium). and its opening marked the end of Transit assembly in Genk. although its successor – the Focus – had been on sale since 1998. In 2008. Its 1959 Anglia two-door saloon was one of the most quirky-looking small family cars in Europe at the time of its launch. Ford also owns a joint-venture production plant in Turkey. Ford has moved the production of the people-carrier to the Genk plant. Starting 2009. Ford acquired a majority stake in Automobile Craiova. Ford Europe has broken new ground with a number of relatively futuristic car launches over the last 50 years. Southampton (UK). the Focus was arguably the most dramatic-looking and fine-handling small family cars on sale. but buyers soon became accustomed to its looks and it was hugely popular with British buyers in particular. The fourth generation Escort was produced from 1990 until 2000. Another joint venture plant near Setúbalin Portugal. formerly assembled the Galaxy people-carrier as well as its sister ships. With the introduction of the third generation of the Galaxy. set up in collaboration with Volkswagen. with Volkswagen taking over sole ownership of the Setúbal facility. Ka in Valencia.

A series of updates kept it looking relatively fresh until it was replaced by the front-wheel drive Mondeo at the start of 1993. known in the US as pickup truck) version is also available with the same range of drivetrains. Like its General Motors rival. In New Zealand. the Falcon uses a rear wheel drive layout.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. the Falcon was based on a U. but since then has been entirely designed and manufactured in Australia.4 per cent. Most of its production was concentrated at Valencia in Spain. and announced that their Geelong engine manufacturing plant may be shut down from 2013. the Commodore and Falcon have traditionally outsold all other cars and comprise over 20% of the new car market.S. In addition. Ford's largest car sold in Europe. Between 1960 and 1972. A ute (short for "utility". the popular Ford Falcon has long been considered the average family car and is considerably larger than the Mondeo.More recently Ford has axed its Falcon-based LWB variant of its lineup – the Fairlane and LTD ranges. . occasionlly being manufactured in New Zealand. They have also announced local manufacturing of the Focus small car starting from 2011. sharp-edged Cortina. Ford Performance Vehicles. The rise in popularity of small cars during the 1970s saw Ford enter the mini-car market in 1976 with its Fiesta hatchback. In Australia. and it was massively popular just about everywhere it was sold. the Holden Commodore. 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. High performance variants of the Falcon running locally built engines produce up to 362 hp (270 kW). Ford was second in market share in the first eight months of 2006 with 14. Asia Pacific Ford dealership in Ho Chi Minh City. model of the same name. Its ultramodern aerodynamic design was a world away from a boxy. Ford Australia sells highly tuned limitedproduction Falcon sedans and utes through its performance car division. Vietnam (August 2005) In Australia and New Zealand.

Through its relationship with Mazda. It outsold the Mazda 323. launched its first made-for-India compact car. It has since added Fusion. due to the fact the Laser was manufactured in Australia and Ford was perceived as a local brand. but later sold their interest to Hyundai (which also manufactured the Ford Cortina until the 1980s). Hong Kong. Kia continued to market the Aspire as the Kia Avella. 2010. Starting at 349. On March 9. but withdrew from the country in 1976. the Philippines. where Ford has had a joint venture with Lio Ho since the 1970s. Fiesta. . The Sierra wagon was also assembled in New Zealand. Ford began selling Mazda's Familia and Capella as the Ford Laser and TelstAr. Ford's presence in Asia has traditionally been much smaller.However. Singapore. Auckland. the Laser was one of Ford Australia's most successful models. later replaced by the Rio and once again sold in the US. the Ford Laser and Telstar were assembled alongside the Mazda 323 and 626 until 1997. In New Zealand. and Taiwan. Ford India began production in 1998 with its Ford Escort model. and was manufactured in Ford's Homebush plant from 1981 until the plant's closure in September 1994. In Australia. owing to the popularity of station wagons in that market. with the acquisition of a stake in Japanese manufacturer Mazda in 1979.690). Ford Motor Co. which built the (Mazda-based) Ford Festiva from 1988–1993. and the Ford Aspire from 1994–1997 for export to the United States. the Figo is Ford's first car designed and priced for the mass Indian market. and did not return until 1995. despite being almost identical to it. Ford also acquired a stake in South Korean manufacturer Kia.900 ($7. Ford began assembly of cars in Thailand in 1960. which was later replaced by locally produced Ford Ikon in 2001. replacing the European-sourced Escort and Cortina. at the Vehicle Assemblers of New Zealand (VANZ) plant in Wir. when it formed a joint venture with Mazda called Auto Alliance. Mondeo and Endeavour to its product line. confined to Malaysia.

new vehicles in a country were based on those of the other manufacturers it had entered into production agreements with. in South Africa began by importing kits from Canada to be assembled at its Port Elizabeth facility. and sold its stake in Samcor. and Autolatina was dissolved in 1995. With the advent of Mercosur. In 1987. In the mid-1980s Ford merged with a rival company. the Corcel and Del Rey in Brazil were originally based on Renault vehicles.On July 28. Consequently. with each plant exporting in large volumes to the neighboring countries. the Courier. owned by Anglo American. Sales figures and profitability were disappointing. with only trucks being sold elsewhere on the continent. and a Cortina-based 'bakkie' or pick-up. or whose factories it had acquired. In Africa. without particular regard to rationalization or economy of scale inherent to producing and sharing similar vehicles between the nations. South America In South America.0 V6 engine. although it licensed the use of its brand name to the . Ford has had to face protectionist government measures in each country. the regional common market. to form the South African Motor Corporation (Samcor). with which it shared models. 2011 Ford India signs MoU with the State of Gujarat to build assembly and engine plant in Sanan and will invest approximately US$1 billion on a 460-acre site. Models like the Ford Mondeo from Europe could now be imported completely built up. For example. Ford was finally able to rationalize its product line-ups in those countries. Later Ford sourced its models from the UK and Australia. Ford's market presence has traditionally been strongest in South Africa and neighbouring countries. which is also produced in South Africa as the Ford Bantam in right hand drive versions. which was exported to the UK. with a 3. Africa and Middle East. and the Ford Focus only built in Argentina. Ford of Brazil produces a pickup truck version of the Fiesta. Ford divested from South Africa in 1988. In many cases. Following international condemnation of apartheid. with the result that it built different models in different countries. with local versions of the Ford Cortina including the XR6. the Ford Fiesta and Ford EcoSport are only built in Brazil. Ford of Brasil and Ford of Argentina merged its operations with those of Volkswagen to form a company called Autolatina.

Ford bought a 45 per cent stake in Samcor following the demise of apartheid in 1994. while the Mondeo. Ford now sells a local sedan version of the Fiesta (also built in India and Mexico). The Falcon model from Australia was also sold in South Africa.000 units in the region. Ford also established itself in Egypt in 1926. but was dropped in 2003. once again. Ford's distributor in Saudi Arabia announced in February 2003 that it had sold 100.000 Ford and Lincoln vehicles since commencing sales in November 1986. a wholly owned subsidiary. which affected its product line-up. Kuwait. In 2004. and saw the European Fords like the Escort and Sierra replaced by the Mazda-based Laser and Telsta. Ford and Lincoln vehicles are currently marketed in ten countries in the region. the Ford Motor Company of Southern Africa. partly due to previous Arab boycotts of companies dealing with Israel. and the Focus. and the UAE are the biggest markets. and this later became. but faced an uphill battle during the 1950s due to the hostile nationalist business environment.000 units. Ford's market presence in the Middle East has traditionally been even smaller.852 units and Nissan Motors' 75.Saudi Arabia. falling far short of General Motors' after briefly being assembled locally. Samcor began to assemble Mazdas as well. Half of the Ford/Lincoln vehicles sold in that country were Ford Crown Victorias. Ford sold 30. was dropped in 2005. .

and Scotsman Robert Davidson were amongst the first to invent more applicable automobiles. According the History of Automobile Industry US. However. in fact. was a self-powered. after the end of the Second World War in 1945. The several methods adopted by Ford.2. three-wheeled. INDUSTRIAL PROFILE: Automobile Industry History In the year 1769. In addition. Cugnot invented the first automobile to run on roads. The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk production of cars. the U.A. especially those of Japan and Germany. a French engineer by the name of Nicolas J. A Scotsman. Oliver Evans was the first to design a steam engine driven automobileintheU. making use of nonrechargeable electric batteries in 1842. dominated the automobile markets around the globe with no notable competitors. the Automobile Industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period. This lead to the development of the industry and it first begun in the assembly lines of his car factory. however. it could only run at a stretch for fifteen minutes. made the new invention (that is. military tractor that made the use of a steam engine.S. The range of the automobile. was the first to invent an electric carriage between 1832 and 1839. This automobile.S Automobile Industry was flooded with foreign automobile companies. beginning in the early 1980s. . However. these automobiles were not fit for the roads as the steam engines made them very heavy and large. the car) popular amongst the rich as well as the masses. electric battery driven automobiles were no more the best option for travelling over longer distances. Thomas Davenport of the U. Development of roads made travelling comfortable and as a result.S. and required ample starting time.1. the short ranged. was very brief and at the most. Robert Anderson.

the World Automobile Industry is now focused on the developing markets of South America and Asia. have been consistently registering higher growth rates every passing year for their flourishing domestic automobile markets. by a substantial margin. However. and China). the struggling General Motors of the U. The effective measures include : . whereas the Automobile Industry in the developing nations. Those who are interested in gathering more information about the Automobile Industry. Several significant economic measures are being considered by the major players of the World Automobile Industry in order to make a smooth entry into the markets of the developing countries. India and Brazil.S. Russia. and to make a name for themselves. With the developed markets almost saturated. India. and Eastern Europe with special emphasis on BRIC (Brazil. ahead of the rapidly growing Toyota Motor Corporation of Japan.The current trends of the Global Automobile Industry reveal that in the developed countries the Automobile Industries are stagnating as a result of the drooping car markets. in terms of the total volume of automobile units manufactured worldwide.S. still remain the worldwide leaders of the World Automobile Industry. for the fiscal end in 2006. have been overtaken by those in Japan. such as. Measures to be adopted by global leaders of the World Automobile Industry. As per the reports of the International Organization of Motor Vehicle Manufacturers or OICA(the association of the companies involved in World Automobile Industry). the automobile manufacturers in the U. may browse through the following links • • • • World Automobile Industry Automobile Industry Trends India Automobile Market India Automobile Industry The World Automobile Industry is turned to the developing markets.

are constantly increasing in size and will be the destination for most of the globally leading automobile manufacturers. these arrangements are enabling the leading global automobile manufacturers to compete with the local automobile manufacturers. Europe and the Japan have almost matured as a result of saturation and appear set to decline through the next decade. As a result of this.S. in order to serve the potential consumers better as well as reduce manufacturing and shipping costs. The rapid growth of the national economy of the BRIC countries (including Brazil. leading Automobile manufacturers of the world are setting up factories in the emerging markets. and China) have enabled a growing section of the population of these countries to purchase automobiles. that were flourishing in the absence of quality competition. to add to the growing national economy of these two nations. these emerging automobile markets will account for nearly a whooping 90 percent of the global automobile sales growth. In addition.• • • Reducing the selling prices of the automobiles manufactured in their factories Improving the levels of after-sales services to keep customers satisfied Opening manufacturing factories in the developing nations. to reduce effective costs of production as well as saving shipping charges. In contrast. India. The Automobile Industry Trends reveal that the emerging markets of the developing nations of Asia especially China. the leading automobile manufacturers are turning to the Asian markets that appear set to grow immensely over the next decade. The automobile markets in the U. Global surveys conducted recently reveal that within the next ten years. and enhancing prompt delivery of automobile units. Russia. the automobile markets spread over the entire Asian continent (with the exception of Japan). Automobile Industry Trends In keeping with the Automobile Industry Trends. .. and India are backed by their huge population growth rate.

The prosperity of the national economy is reflected in the rising per capita income of the developing nations. 2004. The total number of cars that were exported from India were very close to the 2. throughout the financial year 2006-07. The passenger cars are referred to.5 lakh (1. This statistical fact is a glittering example of the potential of the growing Automobile Industry in India. the Indian automobile markets were the fastest growing in the world. that is the financial year end in February. an encouraging sign for the Automobile Industry in India. . In the financial year that ended in February. The export of cars manufactured in India comprised nearly 13 percent of the total number of cars manufactured domestically by the Automobile Industry in India.0 lakh (2. As per the survey conducted by the Society of Indian Automobile Manufacturers. largely due to the growing market for automobiles that is developing in India. Therefore. increasing Gross Domestic Product and per capita income have raised the purchasing ability of the population that constitutes these emerging markets As a growing percentage of the population in the developed nations age rapidly. was very close to the 15. The India Automobile Market is a promising industrial sector that is growing immensely every passing year. in comparison to the rest of the world.0 hundred thousand) margin. The India Automobile Market looks set to prosper. 2007. with the registered growth rate touching nearly 20 percent.5 million) margin. The Emerging India Automobile Market. was very close to a 18 percent over the previous fiscal. these aging numbers necessitate automobiles to fit the physiological change of the world population." The whooping growth experienced by the Indian Automobile Market in the last financial year itself. The huge of number of automobiles manufactured by the Automobile Industry in India was an enormous growth upon the number of automobiles manufactured during the previous fiscal. through the use of the word "automobile. the total number of automobiles manufactured by the Automobile Industry in India. that ended in 2006.

000 crore in 2002-03. India Automobile Industry Following India's growing openness. the turnover of the automobile industry exceeded Rs.The Automobile Industry in India mainly comprises of the small car section. Including turnover of the auto-component sector. 2004. easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. Annual growth was 16. the growth rate in 200304 was 15.518 crore in 2002-03. is poised to become even more larger and enter the top five passenger car markets in the world in the next decade. 84. In this respect.000 crore. The other leading automobile manufactures are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. which enjoys nearly a 2/3rd market share of the entire market for automobiles in India. 59. 74 billion) in 2003-04. With investment exceeding Rs.02 in automobile production continuing in the first three quarters of the 200405. Automobile Dealers Network in India In terms of Car dealer networks and authorized service stations. the Indian markets are the largest in the world for small cars.00. shows high growth obtained since 2001.1. Maruti leads the pack with Dealer networks and workshops across the country. behind Japan. the automotive industry's turnover.0 per cent in April-December. . the arrival of new and existing models. Dealers offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest rates. which was above Rs. 50.000 crore ( USD 22.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. The Indian passenger car market which ranks amongst the largest in the world. The data obtained from ministry of commerce and industry. is estimated to have exceeded Rs.

Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and. General Motors India Ford India Ltd.3 million in 2003-04.2 million in 1998. It is likely that the production of such vehicles will exceed 10 million in the next couple of years.a-half times the export figure for 2001-02. The production of total vehicles increased from 4. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998.Major Manufacturers in Automobile Industry • • • • • • • • • • • • • • Maruti Udyog Ltd. .99 to 7.99 and 1999-00.

1. Growth of exports of 32. for every passenger car turned out by the sector. However. with both production and domestic sales of motorcycles increasing at faster rates than for scooters in the current and previous years. output of commercial vehicles has grown 2. there were 7 two-wheelers produced.6 2004-05 (Apr-Dec) 121478 3892 19931 256765 51535 32. Between 1998-99 and 2003-04. In the two wheeler segment. mopeds have registered low or negative growth.8 % in the first three quarters of 2004-05.2 times increase in passenger cars.Automobile Export Numbers Category Passenger Car Multi Utility Vehicles Commercial Vehicles Two Wheelers Three Wheelers Percentage Growth EVEN GROWTH 1998-99 25468 2654 10108 100002 21138 -16.8 Opposing the belief that the growth in mobile industry has catered only to the top income-stratum of society. two-wheeler output continues to dominate the volume statistics of the sector.3. OVERALL STUDY OF ORGANIZATION: . Export growth rates have been high both for motorcycles and scooters. the fastest growth in volumes has come from commercial vehicles as against passenger cars. Furthermore.8 times compared to the 2. In 2003-04. there is a greater preference for motorcycles followed by scooters.



accessibility.  The study could not be generalized due to the fact that researcher adapted personal interview method. To study the opinion of the owners of cars regarding its features like mileage. To study the customer satisfaction with usage of their cars.1 STATEMENT OF THE PROBLEM: Customer satisfaction greatly affects the organization growth and development and there are several factors which effect the satisfaction level of an customer. price etc.2..  The research was carried out in a short span of time. 2.3. .2. brand name. Hence 100% accuracy can’t be assured. where in the researcher could not widen the study. The few factors which measures the satisfaction level of customers are service. facility. To study the effect of advertisement on the customers to promote the product. LIMITATION OF THE STUDY:  The survey is subjected to the bias and prejudices of the respondents. 2. OBJECTIVE OF THE STUDY: The objective of the project is • To study and understand the key service parameters using Customer Satisfaction and reflect upon the low performing areas: • • • • • To study about the customer satisfaction on the services provided by the dealers. etc. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. To study the opinion of the customers regarding the availability and cost of spare parts.

2. The study tries to understand the key service parameters and reflect upon the dysfunctional areas. ever growing market. easy availability of the finances and increasing population of young executives.4 NEED FOR STUDY: Increasing competition.2.5 SCOPE OF THE PROJECT • • • The research measures the experiences of customers. over the past few years has substantially increased the sales in the automobile industry. . the competition among the dealers of the products has increased with each trying to maximize their customer base. Defines and analyses the experiences based on key deliverables. thus providing the dealer with an insight into the level of customer satisfaction and changing trends of the customer expectations. with huge disposable incomes. Also. This makes it imperative for the dealers to provide the best of the services and exceed the customer expectations to achieve customer delight and loyalty. Gains insights into Customer expectations.


If their expectations of value are not met. Customer satisfaction is the most effective way to achieve customer loyalty.1. the need to gain customer loyalty and retain their loyalty is critical. To be able to create and deliver customer value is important to understand its components. is a difficult and complex process. Customer value is the customer’s perception of the ratio of benefits to what he or she gives to obtain those benefits. On the most basic level. The customer Value Triad is a framework used to understand what it is that customers want. (2) value-based pricing. Customers are satisfied. The framework consists of three parts: (1) perceived product quality.3. however. value from a customer’s perspective is the ratio of benefits to the risks being taken while buying the product. Customer satisfaction and customer loyalty share many similar traits. . REVIEW OF LITERATURE: Concept IdentificationAs organizations become increasingly customer focused and driven by demand. Figuring out what the customers want. there is no chance of satisfying them. and (3) perceived service quality. when value meets or exceeds expectations.

with confused objectives failing to address the real issues for customers. the apparent customer and the user. However as with customer there is a subtlety that needs addressing. there is a risk that customer satisfaction becomes little more than a good intention. What does satisfaction really mean? As in defining customer above. The apparent customer is the person or group of people who decide what product to buy and basically have control over the purse strings. Without this. who a customer is and what satisfaction really means.CUSTOMER SATISFACTION AN INSIGHT : According to Harold E Edmondson “ Customer Satisfaction” seems to appear in print more frequently than any other catch phrase used to describe a new found magic for industrial success. one helpful way . Customer satisfaction is a concept that more and more companies are putting at the heart of their strategy. what customer satisfaction means and what needs to happen to drive improvement. Before we proceed in to the study of the dynamics of Customer Satisfaction it is important to know about. However subtlety that frequently goes undetected by many firms is that is that customer set can be divided into two parts. Satisfaction by most definitions simply means meeting the customer’s requirement. defining satisfaction also appears simple. The user is a person or group who physically uses the product or is the direct recipient of a service. Who really is a Customer? The question of defining who your customers are seems fairly easy particularly if you have segmented your market properly and understand who you are trying to satisfy. but for this to be successful they’re needs to be clarity about.

For example. Achieving customer satisfaction generates the profit. Every customer. This includes both external customers and internal customers within a company. The top management uses consultative. Failing to achieve this can destroy the reputation as well as losing valuable customers. In these organizations top management has frequent contacts with external customers. For the former. However. The staff focuses all of its attention on satisfying the customer’s needs. it must at least include getting the basics right. Customer satisfaction can be defined in many different ways. has the power to influence – positively or negatively – a company’s reputation. it may be sufficient to focus on improving customer service. Whatever the strategy for customer satisfaction. the management’s job is to provide the staff with support necessary to . participative. and supportive management styles to get through to the customer. When doing this one must first realize that every member of an organization plays an active role in customer look at the problem is to rephrase the objectives: set the sights on helping the customers meet their goals. Once the objectives for the customer satisfaction strategy are defined there are a number of steps we can take to make sure the focus on customer satisfaction is effective. closer akin to corporate reputation. but for the latter a broader definition of customer satisfaction is necessary. regardless of their economic worth to the business. Building a company around Customer Satisfaction : With the increase in customer’s demands and competition it has become a lot more important to base the entire company on customer service. Finding the right way for a company depends on understanding your customer and on having a clear vision of the role that customer satisfaction is to play in the strategy. Customer focused organizations focus both on customer satisfaction and profit. a focus on customer satisfaction can work alongside existing segmentations to support revenue generation from high value customers or it can be a company-wide objective rooted in the brand values.

By doing this these companies hope to retain their existing customers and attract new ones. In the perspectives of both the retailer and the manufacturer. a salesperson is likely to identify with needs of the customer. customer satisfaction represents an important issue because it relates to several desirable outcomes.achieve these goals.customer orientation (SOCO) will affect not only consumer satisfaction with the salesperson and dealer. but also indirectly. By being customer-oriented. The other department and staff in the organization that do not have direct contact with the external customers deal exclusively with internal customer satisfaction. Only angle of customer satisfaction commonly overlooked is the internal aspect. a salesperson may influence customer expectations concerning the product. “The influence of salesperson selling behavior on customer satisfaction with products. By helping a buyer obtain product information and providing guidelines about what should be expected during the buying process and use of a product. and repeated purchases of the same product from the same source. A successful salesperson tailors to the needs of each individual customer. Internal Marketing – how it affects Customer Satisfaction – Successful companies make every effort to ensure satisfaction to their customer by focusing all organizational efforts of the company on providing superior customer service.Goff and James S. satisfaction with the product or manufacturer. Thereby this may reduce the likelihood of dissatisfaction ( Grewal and Sharma.” Brent G. . enabling the salesperson to match his or her presentation to those requirements of the customer. Customer satisfaction leads to future purchases. The article states that salesperson’s selling orientation. The Influence of the salesperson in Customer SatisfactionIn an article titled. 1991). Boles examine the effects of nonproduct related construct on customer satisfaction with major retail purchases such as automobiles. In other words. it helps a firm retain its present customers and build loyalty.

Internal marketing helps members or employees of an organization understand and fulfill their roles in implementing its marketing strategy. their overall attitude and performance towards the customer enhances tremendously. 1999). it also shows them how their actions affect the firm’s ability to achieve customer satisfaction. When a firm’s employees are happy at work. Some firm’s do not understand that the treatment of internal customers becomes the external customers’ perception of the company.The internal customer or employee plays a vital role in achieving customer satisfaction and loyalty. A firm’s employees or other departments within the organization make up its internal customers. Their job performance affects the firm’s ability to deliver superior product and customer service (Boone and Kurtz. . Internal marketing not only keeps employees happy.


The descriptive study.The tools used in descriptive research are survey methods of all kinds . The researcher has used a structured questionnaire as a research instrument tool which consists of open ended questions.3. SAMPLING TECHNIQUE: The researcher has used Non-probability sampling in which convenience sampling is used. Questionnaire is the data collection instrument used in the study.Descriptive research Design is generally concern with narration of facts with specific prediction of concern group or situation .It deals with determining frequency with which something occurs or how two variables vary together . RESEARCH DESIGN: Descriptive type of research design is chosen for this research study.2. SOURCE OF DATA: Most of the data collected by the researcher is primary data and secondary data.4. the researchers discover causes even when they cannot control the variables .5.It is both qualitative and quantitative in nature .It describes as it exists at present. Thus. . 4. Primary data is collected through personal interview. 4. DETERMINATION OF SAMPLE SIZE: The study sample constitutes 50 respondents constituting in the research area. where the researcher and the respondent operate face to face and secondary data through the data and documents obtained from the organization. 4. RESEARCH METHODOLOGY: The type of research employed for this study was descriptive research .including comparative and co relational methods .4.1. 4. multiple choice and dichotomous questions in order to get data.

CHAPTER V .All the questions in the questionnaire are organized in such a way that obtain all the relevant information that is needed for the study.

DATA ANALYSIS AND DATA INTERPRETATION 5.0. a.ANALYSIS AND INTERPRETATION: Chi-Square Test Null Hypothesis: Observed and expected frequency have no change Frequencies Test drive offered Observed N Yes No Total 36 14 50 Expected N 25. Sig. 0 cells (.2.square test and correlation by using the SPSS software. 5.0 -11.002 .1 TOOLS USED FOR ANALYSIS: The statistical tools used for analyzing the data collected are Chi.0 Residual 11. The minimum expected cell frequency is 25.0 Test Statistics Test drive offered Chi-Square df Asymp.0%) have expected frequencies less than 5.680a 1 .0 25. 9.

320 and the Asymp. Chi-Square Test Null Hypothesis: Observed and expected frequency have no change Frequencies Customer Experience Observed N Satisfied Not satisfied Total 23 27 50 Expected N 25.572 a.572 which is greater than the 0.0 25.05 therefore reject null hypothesis. The minimum expected cell frequency is 25. . Sig.0%) have expected frequencies less than 5.0.Inference: From the above output the chisquare value is 9. (P) is . . Sig.002 which is less than the 0.680 and the Asymp.0 Residual -2.0 Test Statistics Customer Experience Chi-Square df Asymp. 0 cells (.320a 1 . (P) is .0 2. Inference: From the above output the chisquare value is . Sig.05 therefore accept null hypothesis.

658 50 50 1 Age -.658 50 1 Inference: The output shows that there is negative correlation between the two variables since the correlation coefficient is -.064 . (2-tailed) N Age Pearson Correlation Sig. So if increase in one variable will simultaneously decrease the other variable.064. (2-tailed) N 50 -.Correlations Satisfaction over usuage Satisfaction over usuage Pearson Correlation Sig. .064 .

172 . So if increase in one variable will simultaneously increase the other variable.233 50 50 1 after sale service . (2-tailed) N 50 .233 50 1 Inference: The output shows that there is positive correlation between the two variables since the correlation coefficient is 0.172.Correlations Satisfaction over Occupation Occupation Pearson Correlation Sig. (2-tailed) N Satisfaction over after sale service Pearson Correlation Sig. .172 .

Sig.396 which is greater than the 0. Sig.0%) have expected frequencies less than 5. The minimum expected cell frequency is 25.0 Residual 3. .396 a. (P) is .05 therefore accept null hypothesis. Inference: From the above output the chisquare value is .0.0 25.720 and the Asymp.0 Test Statistics people thought Chi-Square df Asymp.0 -3.720a 1 . . 0 cells (.Chi-Square Test Null Hypothesis: Observed and expected frequency have no change Frequencies people thought Observed N Excellent good Total 28 22 50 Expected N 25.

011 which is less than the 0. (P) is .011 a. 6.0 -9.05 therefore reject null hypothesis.0%) have expected frequencies less than 5.0.480a 1 . Inference: From the above output the chisquare value is 6.0 Test Statistics Delivery on time Chi-Square df Asymp.0 Residual 9.Chi-Square Test Null Hypothesis: Observed and expected frequency have no change Frequencies Delivery on time Observed N YES No Total 34 16 50 Expected N 25. .480 and the Asymp. 0 cells (.0 25. Sig. The minimum expected cell frequency is 25. Sig.

So if increase in one variable will simultaneously increase the other variable.Correlations Age Age Pearson Correlation Sig.125.388 50 1 Inference: The output shows that there is positive correlation between the two variables since the correlation coefficient is 0. (2-tailed) N Responsiveness Pearson Correlation Sig.388 50 50 1 Responsiveness .125 .125 . . (2-tailed) N 50 .

320a 1 . 0 cells (.572 a. Sig.572 which is greater than the 0.0 2.320 and the Asymp. The minimum expected cell frequency is 25.05 therefore accept null hypothesis. . Sig.0.0%) have expected frequencies less than 5.0 25.Chi-Square Test Null Hypothesis: Observed and expected frequency have no change Frequencies Recommendation Observed N YES No Total 23 27 50 Expected N 25.0 Residual -2. Inference: From the above output the chisquare value is . (P) is . .0 Test Statistics Recommendation Chi-Square Df Asymp.

0 25.000 which is less than the 0. a.Chi-Square Test Null Hypothesis: Observed and expected frequency have no change Frequencies Best feature in ford car Observed N price Style Total 45 5 50 Expected N 25. (P) is . The minimum expected cell frequency is 25. Sig.0 Residual 20.05 therefore reject null hypothesis. 32.0 Test Statistics Best feature in ford car Chi-Square Df Asymp. Sig. . 0 cells (.000 and the Asymp.000a 1 .0 -20.0%) have expected frequencies less than 5.000 Inference: From the above output the chisquare value is 32.0.

Correlations Satisfaction of Occupation Occupation Pearson Correlation Sig.024 . . (2-tailed) N Satisfaction of mileage Pearson Correlation Sig.867 50 1 Inference: The output shows that there is negative correlation between the two variables since the correlation coefficient is -.024 . (2-tailed) N 50 -. So if increase in one variable will simultaneously decrease the other variable.024.867 50 50 1 mileage -.

049.049 . So if increase in one variable will simultaneously decrease the other variable. (2-tailed) N Feel Pearson Correlation Sig.738 50 1 Inference: The output shows that there is negative correlation between the two variables since the correlation coefficient is -. Chi-Square Test .Correlations Age Age Pearson Correlation Sig.049 . (2-tailed) N 50 -.738 50 50 1 Feel -.

0 cells (. a. Sig.5 -1. Sig.5 12.5 12. 6.0%) have expected frequencies less than 5. .112 Inference: From the above output the chisquare value is 6. The minimum expected cell frequency is 12.000a 3 .5 Test Statistics Model of the car Chi-Square Df Asymp.5 Residual .000 and the Asymp.5. (P) is .112 which is greater than the 0.05 therefore accept null hypothesis.5 6.5 12.5 -5.Null Hypothesis: Observed and expected frequency have no change Frequencies Model of the car Observed N fiesta new fiesta classic figo endeavour Total 13 11 19 7 50 Expected N 12.


Most of the customers had a good experience of shopping at CHENNAI FORD.• • CHENNAI FORD enjoys a high patronage from its customers. It is evident that more than 80% customers are satisfied with the service offered at CHENNAI FORD. the showroom should persist on high levels of commitment to maintain the good image it has created. which is exceptionally good. . • In the interview it was found that the customers are happy about the training programs under taken by the showroom.4 on scale of ten. SUGGESTIONS . which train the customers to negotiate minor breakdowns comfortably.2. 6. which is a good sign. • The probability that the customers would repeat that purchase at the same showroom is high. • The sale satisfaction index of CHENNAI FORD showroom is 8. • The satisfaction levels can also measured with the level of recommendations to friends and associates. • It has been observed that 25% of customers have reported a slack in the delivery process.

 Some of the customers have also complained about the after purchase services provided by the showroom. the showroom needs to resolve the customer after purchase service issues in order to achieve customer satisfaction . Therefore. this is the area which I recommend to the showroom to focus a little bit more. The only couple problem noticed are:  Some of the customers have complained about the slack in the delivery process and timings. . Even though complaints are minor. Need to become little quick and fast. It needs to improve its delivery process and time.The overall sales satisfaction index from the study reveals that the company is performing very well and customers buying are much satisfied with the service given to them.


R. Marketing Management: PHILIP KOTLER. Marketing Research: .com http://www.BIBLIOGRAPHY Books: Principles of marketing: KOTLER ARMSTRONG. Research Methodology: KOTHARI. Websites: http://www. BERI. (Analysis. Planning Implementation and Control) Services Marketing : TATA Mc GRAW http://www.


CUSTOMER SATISFACTION INDEX Details: VehicleNo: _______________________________________________________ Model: ___________________________________________________________ CustomerName: __________________________________________________ TelephoneNo: ______________________Mobile:________________________ Date:__________________ Customer signature: ________________________ 1. Which model of ford car do you own? a) fiesta new b) fiesta classic c) figo d) endeavour 4. How do you feel when you drive ford car? a) Good B) better c) best b) No d) Poor 6. Age group a) 20-30 2. Are you satisfied with your vehicle mileage? a) Yes . which feature is the best one in ford car? a) price b) style c) mileage d) quality e) mileage & quality e) mileage & style 1. Occupation? a) Employee b) business c) NRI d) others b) 30-40 c) 40-50 d) Above 50 3.

7. How do you feel about company’s response towards customers? a) Excellent b) Good c) Better d) Poor 10. were you offered test drive? a) Yes b) No 14. b) No what do you think about Chennai ford’s customer service? a) Excellent b) Good c) Better d) Poor 9. did you receive the product on delivery time? a) Yes b) No 11. will you recommend ford product to anybody? a) Yes 1. are you satisfied company’s after sales service? a) Satisfied b) not satisfied 12. How do you feel the experience at the showroom? a) Satisfied b) not satisfied 13. Are you satisfy with their usage of the car? a) fully satisfied b) just satisfied c) not satisfied .