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Ford Motor Company is an American multinational corporation and the world's third largest automaker based on vehicle sales in 2005. Also in 2005, Ford produced about 6.92 million automobiles, and employed about 300,000 employees at 108 plants and facilities worldwide. [3] Based in Dearborn, Michigan, a suburb of Detroit, the automaker was founded by Henry Ford and incorporated in 1903. Ford now encompasses many global brands, including Lincoln and Mercury of the US, Jaguar, and Land Rover of the UK, and Volvo of Sweden. Ford also owns a one-third controlling interest in Mazda. Ford also recently purchased the Rover name (which is no longer in use) to keep others from using it to capitalize on Land Rover. Ford has also been one of the world's ten largest corporations by revenue and in 1999 ranked as one of the world's most profitable corporations, and the number two automaker worldwide. Since 2000, Ford has not fared as well, having steadily lost market share in the U.S. since 1995.[4] In December 2006 the company announced that it expected Toyota to overtake it as the number 2 automaker in the US market.[5] In Feb 2007, reports put Ford behind not only Toyota, but DaimlerChrysler AG in unit sales for January.[6]
HistoryImage:Henry ford 1919.jpg Henry Ford (ca. 1919) Ford was launched in a converted wagon factory in 1903 with $28,964 in cash from twelve investors. During its early years, the company produced just a few Model As 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. Ford and his company would go on to become the first to mass produce a product using machinery and assembly lines, rather than having the same workers doing the entire assembly of one vehicle. Henry Ford was 40 years old when he founded the Ford Motor Company, which 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. The largest family-controlled company in the world, the Ford Motor Company has been in continuous family control for over 100 years. Corporate governanceMembers of the board as of early 2007 are: Sir John Bond, Richard Manoogian, Stephen Butler, Ellen Marram, Kimberly Casiano, Alan Mulally (President and CEO), Edsel Ford II, Homer Neal, William Clay Ford, Jr., Jorma Ollila, Irvine Hockaday, Jr., John L. Thornton and William Clay Ford (Director Emeritus).[7] The main corporate officers are: Lewis Booth (Executive Vice President, Chairman (PAG) and Ford of Europe), Mark Fields (Executive Vice President, President [The Americas]), Donat Leclair (Executive Vice President and CFO), Mark A. Schulz (Executive Vice President, President [International Operations]) and Michael E. Bannister (Group Vice President; Chairman & CEO Ford Motor Credit Company).[8] New directions for the twenty-first century
Economic issuesDuring 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 automomobile loans through Ford Motor Credit Company.[10] By 2005, corporate bond rating agencies had downgraded the bonds of both Ford and GM to junk status [11], 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. [12] In the face of falling truck and SUV sales, Ford moved to introduce a range of new vehicles, including "Crossover SUVs" built on unibody car platforms, rather than body-on-frame truck chasses. Ford also developed alternative fuel and high efficiency vehicles, such as the Escape Hybrid.[13] 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 [14]. Chairman Bill Ford has stated that "bankruptcy is not an option" [15], but economists have stated that the company's impending contract renewal with the United Auto Workers in the summer of 2007 could be brutal[16]. The UAW has vowed to attempt to retain the jobs banks, a system which retains idled workers on the payroll, rather than laying them off, in order to maintain contracted US employment levels. [17] The automaker reported a net loss of $12.7 billion during 2006, and has estimated that it will not return to profitability until 2009.[18] "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. [19]. These cutbacks are consistent with Ford's roughly 25% decline in U.S. automotive market share since the mid-late 1990s. Ford's target is to become profitable again in 2009, a year later than projected. Ford's realignment also includes the sale of its wholly owned subsidiary, Hertz Rent-a-Car to a private equity group for $15 billion in cash and debt acquisition. The sale was completed on December 22 2005. A joint venture with Mahindra and Mahindra Limited of India ended with the sale of Ford's 15 percent stake in 2005. Chairman and Chief Executive Officer Ford also became President of the company in April 2006, with the retirement of Jim Padilla. Five months later, in September, he stepped down as President and CEO, and naming Alan Mulally as his successor. Bill Ford continues as Executive Chairman, along with an executive operating committee made up of Mulally, Mark Schulz, Lewis Booth, Don Leclair, and Mark Fields. Brands and marquesToday, Ford Motor Company manufactures automobiles under several names including Lincoln and Mercury in the United States. In 1958, Ford introduced a new marque, the Edsel, but poor sales led to its discontinuation in 1960. Later, in 1985, the Merkur brand was introduced; it met a similar fate in 1989. Ford has major manufacturing operations in Canada, Mexico, the United Kingdom, Germany, Brazil, Argentina, Australia, the People's Republic of China, and several other countries, including South Africa where, following divestment during apartheid, it once again has a wholly owned subsidiary. Ford also has a cooperative agreement with Russian automaker GAZ. Since 1989, Ford has acquired Aston Martin (which it sold again on 2007-03-12[20], but it will retain a $77 million stake in the sports car maker[21]), Jaguar, Daimler (division of Jaguar), Land Rover, and Rover from the United Kingdom and Volvo Cars from Sweden, as well as a controlling share (33.4%) of Mazda of Japan, with which it operates an American joint venture plant in Flat Rock, Michigan called Auto Alliance. It has spun off its parts division under the name Visteon. Its prestige brands, with the exception of Lincoln, are managed through its Premier Automotive Group. Ford's FoMoCo parts division sells aftermarket parts under the Motorcraft brand name. Ford's non-manufacturing operations include organizations such as automotive finance operation Ford Motor Credit Company. Ford also sponsors numerous events and sports facilities around the nation, most notably Ford Center in downtown Oklahoma City and Ford Field in downtown Detroit. Overall the Ford Motor Company controls the following car marques: Daimler (as Jaguar division), Edsel, Ford, Jaguar, Lanchester (as Jaguar/Daimler division), Land Rover, Lincoln, Mazda, Mercury, Merkur, Rover (marque name only) and Volvo (passenger vehicles only). Daimler Motor Company, Jaguar, Lagonda, Land Rover, Rover, and Volvo are controlled under the Premier Automotive Group. Global marketsInitially, Ford models sold outside the U.S. were essentially versions of those sold on the home market, but later on, models specific to Europe were developed and sold. Attempts to globalize the model line have often failed, with Europe's Ford Mondeo selling poorly in the United States, while U.S. models such as the Ford Taurus have fared poorly in Japan and Australia, even when produced in right hand drive. The small European model Ka, a hit in its home market, did not catch on in Japan, as it was not available as an automatic. The Mondeo was dropped by Ford Australia, because the segment of the market in which it competes had been in steady decline, with buyers preferring the larger local model, the Falcon. One recent exception is the European model of the Focus, which has sold strongly on both sides of the Atlantic. EuropeIn May 2006, at the same time as the launch of the Ford S-MAX, Ford of Europe removed country specific taglines and adopted 'Feel the difference' across its markets).
Increasingly, Ford Motor Company has looked to Ford of Europe for its "world cars," such as the Mondeo, Focus, and Fiesta, although sales of European-sourced Fords in the U.S. have been disappointing. In Asia, models from Europe are not as competitively priced as Japanese-built rivals, nor are they perceived as reliable. The Focus has been one exception to this, which has become America's best selling compact car since its launch in 2000. In 2001, Ford ended car production in the UK. It was the first time in more than eighty years that Ford cars had not been made in Britain, although production of the Transit van continues at the company's Southampton facility, engines at Bridgend and Dagenham, and transmissions at Halewood. Development of European Ford is broadly split between Dunton in Essex (powertrain, Fiesta/Ka, and commercial vehicles) and Cologne (body, chassis, electrical, Focus, Mondeo) in Germany. Ford also produced the Thames range of commercial vehicles, although the use of this brand name was discontinued circa 1965. It owns the Jaguar, and Land Rover car plants in Britain, which are still operational. Ford's Halewood Assembly Plant was converted to Jaguar production. Elsewhere in continental Europe, Ford assembles the Mondeo range in Genk (Belgium), Fiesta in Valencia (Spain) and Cologne (Germany), Ka in Valencia, and Focus in Valencia, Saarlouis (Germany) and Vsevolozhsk (Russia). Transit production is in Kocaeli (Turkey), Southampton (UK), and Transit Connect in Kocaeli. Ford also owns a joint-venture production plant in Turkey. Ford-Otosan, established in the 1970s, manufactures the Transit Connect compact panel van as well as the "Jumbo" and long wheelbase versions of the full-size Transit. This new production facility was set up near Kocaeli in 2002, and its opening marked the end of Transit assembly in Genk. Another joint venture plant near Setubal in Portugal, set up in collaboration with Volkswagen, assembles the Galaxy people carrier as well as its sister ship, the VW Sharan. Asia PacificImage:SaigonFord.jpg Ford dealership in Ho Chi Minh City, Vietnam (August 2005) In New Zealand and Australia, the popular Ford Falcon is considered the typical (if not particularly economical) family car, though it is considerably larger than the Mondeo sold in Europe. Between 1960 and 1972, the Falcon was based on a U.S. Ford of that name, but since then has been entirely designed and manufactured locally. Like its General Motors rival, the Holden Commodore, the 4.0 L Falcon retains rear wheel drive. High performance variants of the Falcon running locally-built engines produce up to 390 hp. A ute (short for "utility," known in the US as pickup truck) version is also available with a similar range of drivetrains. In addition, Ford Australia sells highly-tuned Falcon sedans and utes through its performance car division, Ford Performance Vehicles. These cars produce over 400 hp and are built in small numbers to increase their value as collectors' cars. In Australia, the Commodore and Falcon outsell all other cars and comprise over 20% of the new car market. In New Zealand, Ford was second in market share in the first eight months of 2006 with 14.4 per cent.[22] Ford's presence in Asia has traditionally been much smaller. However, with the acquisition of a stake in Japanese manufacturer Mazda in 1979, Ford began selling Mazda's Familia and Capella (also known as the 323 and 626) as the Ford Laser and Telstar. The Laser was one of the most successful models sold by Ford in Australia, and outsold the Mazda 323, despite being almost identical to it. The Laser was also built in Mexico and sold in the U.S. as the Mercury Tracer, while the 1989 American Ford Escort was based on the Laser/Mazda 323. The smaller Mazda 121 was also sold in the U.S. and Asia as the Ford Festiva. Through its relationship with Mazda, Ford also acquired a stake in South Korean manufacturer Kia, which later built the Ford Aspire for export to the United States, but later sold the company to Hyundai. Ironically, Hyundai also manufactured the Ford Cortina until the 1980s. Ford also has a joint venture with Lio Ho in Taiwan, which assembled Ford models locally since the 1970s. Ford came to India in 1998 with its Ford Escort model, which was later replaced by locally produced Ford Ikon in 2001. It has since added Fusion, Fiesta, Mondeo and Endeavour to its product line. South AmericaIn South America, Ford has had to face protectionist government measures in each country, with the result that it built different models in different countries, without particular regard to rationalization or economy of scale inherent to producing and sharing similar vehicles between the nations. In many cases, new vehicles in a country were based on those of the other manufacturers it had entered into production agreements with, or whose factories it had acquired. For example, the Corcel and Del Rey in Brazil were originally based on Renault vehicles. In 1987, Ford merged its operations in Brazil and Argentina with those of Volkswagen to form a company called Autolatina, with which it shared models. Sales figures and profitability were disappointing, and Autolatina was dissolved in 1995. With the advent of Mercosur, the regional common market, Ford was finally able to rationalize its product line-ups in those countries. Consequently, the Ford Fiesta and Ford EcoSport are only built in Brazil, and the Ford Focus only built in Argentina, with each plant exporting in large volumes to the neighboring countries. Models like the Ford Mondeo from Europe could now be imported completely built up. Ford of Brazil produces a pick-up truck version of the Fiesta, the Courier, which is also produced in South Africa as the Ford Bantam in right hand drive versions. Africa and Middle EastIn Africa Ford's market presence has traditionally been strongest in South Africa and neighboring countries, with only trucks being sold elsewhere on the continent. Ford in South Africa began by importing kits from Canada to be assembled at its Port Elizabeth facility. Later Ford sourced its models from the UK and Australia, with local versions of the Ford Cortina including the XR6, with a 3.0 V6 engine, and a Cortina 'bakkie' or pick-up, which was exported to the UK. In the mid-1980s Ford merged with a rival company, owned by Anglo American, to form the South African Motor Corporation (Samcor). Following international condemnation of apartheid, Ford divested from South Africa in 1988, and sold its stake in Samcor, although it licensed the use of its brand name to the company. Samcor began to assemble Mazdas as well, which affected its product line-up, which saw the European Fords like the Escort and Sierra replaced by the Mazda-based Laser and Telstar. Ford bought a 45 per cent stake in Samcor following the demise of apartheid in 1994, and this later became, once again, a wholly owned subsidiary, the Ford Motor Company of Southern Africa. Ford now sells a local sedan version of the Fiesta (also built in India and Mexico), and the Focus and Mondeo Europe. The Falcon model from Australia was also sold in South Africa, but was dropped in 2003. Ford's market presence in the Middle East has traditionally been even smaller, partly due to previous Arab boycotts of companies dealing with Israel. Ford and Lincoln vehicles are currently marketed in ten countries in the region.[23] Saudi Arabia, Kuwait, and the UAE are the biggest markets. 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. Half of the Ford/Lincoln vehicles sold in that country were Ford Crown Victorias.[24] In 2004, Ford sold 30,000 units in the region, falling far short of General Motors' 88,852 units and Nissan Motors' 75,000 units. Alternate fuel vehiclesBill Ford was one of the first top industry executives to make regular use of an battery electric vehicle, a Ford Ranger EV, while the company contracted with the United States Postal Service to deliver electric postal vans based on the Ranger EV platform. The alternative fuel vehicles, such as some versions of the Crown Victoria especially in fleet and taxi service, operate on compressed natural gas - or CNG. Some CNG vehicles have dual fuel tanks - one for gasoline, the other for CNG - the same engine can operate on either fuel via a selector switch. Flexible fuel vehicles are designed to operate smoothly using a wide range of available fuel mixtures - from pure gasoline, to bioethanol-gasoline blends such as E85 (85% ethanol, 15% gasoline). Part of the challenge of successful marketing alternative and flexible fuel vehicles, is the general lack of establishment of sufficient fueling stations, which would be essential for these vehicles to be attractive to a wide range of consumers. Significant efforts to ramp up production and distribution of E85 fuels are underway and expanding.[25] Current Ford Flexible Fuel Vehicles:[26]
Ford was third to the automotive market with a hybrid electric vehicle: the Ford Escape Hybrid, which also represented the first hybrid electric SUV to market. The Hybrid Escape will also be the first hybrid electric vehicle with a Flexible Fuel capability to run on E85.[27] The company had made plans to manufacture up to 250,000 hybrids a year by 2010, but has since had to back down on that commitment, due to excessively high costs and the lack of sufficient supplies of the hybrid-electric batteries and drivetrain system components. Instead, Ford has committed to accelerating development of next-generation hybrid-electric power plants in Britain, in collaboration with Volvo, Jaguar, and Land Rover. This engineering study is expected to yield more than 100 new hybrid-electric vehicle models and derivatives. Ford is also planning to produce 250,000 E85-capable vehicles a year in the US, adding to some 1.6 million already sold in the last 10 years.[28] Ford also has launched the production of hydrogen-powered shuttle buses, using hydrogen instead of gasoline in a standard internal combustion engine, for use at airports and convention centers.[29] At the 2006 Greater Los Angeles Auto Show, Ford showcased a hydrogen fuel cell version of its Explorer SUV. The Fuel cell Explorer has a combined output of 174 horsepower. It has a large hydrogen storage tank which is situated in the center of the car taking the original place of the conventional model’s automatic transmission. The centered position of the tank assists the vehicle reach a notable range of 350 miles, the farthest for a fuel cell vehicle so far. The fuel cell Explorer the first in a series of prototypes partly funded by the United States Department of Energy to expand efforts to determine the feasibility of hydrogen- powered vehicles. The fuel cell Explorer is one of several vehicles with green technology Ford being featured at the L.A. show, including the 2008 Ford Escape Hybrid, PZEV emissions compliant Fusion and Focus models and a 2008 Ford F-Series Super Duty outfitted with Ford's clean diesel technology. Current and planned Ford hybrid electric vehicles:
CriticismThroughout its history, the company has faced a wide range of criticism. Detractors of the company in the past have accused the early Fordist model of production of being extremely dehumanizing and exploitative, as well as characterizing the company as oppressive and unscrupulous, willing to collaborate with dictatorships or hire mobs to intimidate union leaders and increase their profits through unethical means. Detractors of the company often point out to the fact that Ford refused to allow collective bargaining until 1941, with the Ford Service Department being set up as an internal security, intimidation, and espionage unit within the company, and quickly gained a reputation of using violence against union organizers and sympathizers (see The Battle of the Overpass).[30][31] Ford was also criticized for wearing down Firestone tires during driving, which caused many wrecks during a short time period in 2003. Although Firestone received the blame, it was a public relations issue for Ford. Ford's poor workmanship in the 70s and 80s inspired the joke acronyms Found on Road Dead and Fix or Repair Daily Auto racing
Image:Todd Kluever.jpg NASCAR Ford Fusion race car Ford is a major player in the scene of auto racing and motorsports. NASCARFord is one of four manufacturers in the three NASCAR series: Nextel Cup, Busch Series, and Craftsman Truck Series. Major teams include Roush Fenway Racing and Robert Yates Racing. Ford's racing teams debuted the Fusion race car, replacing the Taurus at the 2006 Daytona 500. Some of the most successful NASCAR Fords were the aerodynamic fastback Ford Torino and Mercury Montegos, and the aero-era Ford Thunderbirds. Trans-AmFord has a storied history in the Trans-Am series from the 1970s through today, having won many championships and races with its Ford Mustang. Drag racingJohn Force has piloted his Drag Ford Mustang to several NHRA funny-car titles in recent seasons. Indianapolis 500Ford powered racing cars won the Indianapolis 500 17 times between 1965 and 1996. Image:Stewart gp barrichello 1998.jpg Rubens Barrichello driving for the Stewart Grand Prix team in 1997 Formula OneFord was heavily involved in Formula One for many years, and supplied engines to a large number of teams from 1967 until 2004. These engines were designed and manufactured by Cosworth, the racing division that was owned by Ford from 1998 to 2004. Ford-badged engines won 176 Grands Prix between 1967 and 2003 for teams such as Team Lotus and McLaren. Ford entered Formula One as a constructor in 2000 under the Jaguar Racing name, after buying out the Stewart Grand Prix team which had been its primary 'works' team in the series since 1997. Jaguar achieved little success in Formula One, and after a turbulent five seasons, Ford pulled out of the category after the 2004 season, selling both Jaguar Racing (which became Red Bull Racing) and Cosworth (to Gerald Forsythe and Kevin Kalkhoven).[32] RallyFord has also been active many years in the World Rally Championship, and has used various versions of the Ford Focus WRC since 1999 to much success. In 2006 Ford secured the FIA World Rally Championship manufacturers' title, with the Focus RS. Ford is the only manufacturer to score in the points for 75 consecutive races, since the opening round in the 2002 championship. Ford has a very long history in rally racing, having previously run the Ford RS200 and many versions of the Ford Escort and Ford Sierra to great success. Sports carsFord sports cars have always been visible in the world of endurance racing. Most notably the GT40 won the prestigious 24 Hours of Le Mans four times in the 1960s and still stands today as one of the all-time greatest racing cars. The GT40 is the only American car to ever win Le Mans. Ford currently holds the manufacturers title (2005) for Grand-Am with the FR500C Mustang race car. Touring carsFord has campaigned touring cars such as the Focus, Falcon, and Contour/Mondeo and the Sierra Cosworth in many different series throughout the years. Notably, the Mondeo finished 1,2,3 in the British Touring Car Championship in 2000, and the Falcon finished 1,2,3 in the Australian V8 Supercar Series in 2005. Formula FordThis formula for single-seater cars without wings and originally on road tires were conceived in 1966 in the UK as an entry-level formula for racing drivers. Many of today's racing drivers started their car racing careers in this category. Ford trucksImage:Ford 1961.JPG 1961 Ford H-Series trucks Image:Ford 1939.jpg 1939 Ford pick-up truck Ford produces trucks since 1908 to date. Countries where Ford commercial vehicles are or were made include at least Argentina, Australia, Brazil, Canada (badged Mercury too), France, Germany, India, Netherlands, Philippines, Spain (badged Ebro too), Turkey, UK (badged also Fordson and Thames) and USA. Most of all these ventures are now extinct. The European one that lasted longer was the lorries arm of Ford of Britain, that was eventually sold to Iveco group in 1986, and whose last significant models were the Transcontinental and the Cargo. In USA, Ford's heavy trucks division was sold in 1997 to Freightliner, now part of DaimlerChrysler, that rebranded it as Sterling. Ford kept on building light and medium trucks and recently introduced the CLF series, a badge engineered Mitsubishi Fuso. Final result of all these decisions is that currently Ford is out of all heavy truck markets, with the top model of the medium-class Ford Cargo range, currently made in Brazil, being nowadays the Ford-badged commercial vehicle the most closer to a heavy truck. Bus productsFord has manufactured buses in the company's early history, but most Ford buses are built on Ford chassis by other manufacturers:
Clients include: Ford TractorsFord started making tractors around 1907. Ford used to make a range of tractors at their Basildon plant in Essex, England. Ford has owned Versatile in the past. In 1986 the Ford motor company bought out New Holland and the new company was named Ford New Holland. This company was bought by Fiat and the name changed from Ford New Holland to New Holland. New Holland is now part of the CNH Group. See also
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