Ford motors economics

GM, and Ford — Onward and Upward? Both announced strong second quarter profit results.

Ford motors economics

The Chief Operating Officer handles — Global automotive operations. The Chief Technical Officer handle — Engineering and global product development along with Sustainability, environmental, safety engineering The Chief Finance officer deals controller and treasurer.

HR professional partner with teams to build a skilled and motivated team. HR aims towards building of the Ford Motors along the line of the vision and mission. Brand Equity Business Knowledge Center defines Brand equity is an intangible asset that depends on associations made by the consumer.

Three perspectives from which to view brand equity: To the shareholders, it provides dividend to encourage and benefit them for their contribution. In North and South American countries, Ford has been the most reliable brand with vast business and so many models in the car segment.

Its luxury brand like Lincoln and Mazda have been world class in luxury segment. Business Strategy Wikibooks defines Business strategies as the art, science, and craft of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives.

Ford faced huge challenge is small car segments. Ford has managed to remain competitive in Europe despite heavy threat from the BMW and Audi by designing cars which appeal to European tastes and by increasing the quality ratings of its vehicles.

Ford motors economics

In the recent years Ford has tried to lessen the quantity of suppliers it contracts with. Merchants ordinarily fund their buys through Ford Credit. Generally speaking, diseconomies of scale adequately dispose of purchaser power in retail circumstances. Considerable altered expenses, the impact of brand names upon deals, and the dealership display all ruin new participants.

New technology of Electric Vehicles may be massive challenge in future. If we consider Tesla Motors, Fisker Karma which is taking the market share rapidly may impact on growth and profitability of Ford Motors in coming years. This has given an extra catalyst to Ford give exceedingly fuel effective vehicles to the purchaser.

Ford, although not the strongest player in the China has experienced the significant growth in the largest automotive market in the world for the Ford EcoBoost is another initiative to increase fuel efficiency.

Ford has developed electrification strategy to reduce the carbon dioxide CO2 emissions from its vehicle and make them more efficient. It introduced EV such as Fusion variants.

Ford has great experience in creating strategic alliances and partnerships with other automotive companies. A new wave for stricter regulations on vehicle emission standards would positively affect Ford position in automotive industry.

Rising prices for raw metals will lift the costs for auto manufacturers and result in squeezed profits for the companies. This threat is all across the world in auto industry.

Some analysts forecast that future fuel prices will drop due to extraction of shale gas. This would negatively affect Ford as it focus on compact fuel-efficient hybrid and flexible fuel cars that are less attractive when the fuel price is low.

Ford, including largest automotive companies, may negatively be affected by fluctuating exchange rates as it earns more than half of its profits outside the US.

The profits may be lower due appreciating dollar against other currencies. Auto industry has intense competition from each other manufacturers. Performance over the Years Ford has generated large revenue and net income before tax over the year except the recession time.

Also, trend line is declining over the years Source: Data from Bloomberg Terminal Further Challenges and Strategy Auto manufacturers are facing tough time from environment, Government policies, Oil prices, international policies etc.

Ford Motor was almost bankrupt in Global financial crisis left marks on the automobile industry. Recent shutdown of Detroit Auto manufacturing hub has extreme bad impact on confidence of auto manufacturer.

Few strategies that Ford should focus on for upper and line bottom line growth.Ford to invest $11bn and have 40 hybrid and fully electric vehicles by Published: 15 Jan Detroit's auto giants take fight to big tech as largest US car show kicks into gear.

Performance of American and Japanese Automakers

At $9/share, Ford's stock has gone down to levels last seen in December As a capital-intensive cyclical automaker, Ford certainly deserves to be trading at a PE of X expected EPS. Ford Motor Company is an American automaker and the world's fifth largest automaker based on worldwide vehicle in Dearborn, Michigan, a suburb of Detroit, the automaker was founded by Henry Ford, on June 16, Ford Motor Company 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.

This case analysis is made on Ford Motor Company, presented below are key success factors that a global automotive. James D. Farley, Jr. In this role, he is responsible for overseeing Ford’s business units, The Americas; Europe, Middle East & Africa and Asia Pacific.

In addition, Farley oversees The Lincoln Motor Company, global Marketing & Sales and the strategy and business model development for electrified vehicles.

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