Ford Motor Company

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Ford Motor Company is the world's largest producer of trucks, and the second

largest producer of cars and trucks combined. Ford has manufacturing, assembly

or sales affiliates in 34 countries and Ford companies employed 337,800 people

world-wide in 1996.

Ford has manufacturing facilities in 22 countries on 5 continents, with 87

plants in North America and 41 in Europe. In Europe, in 1995, Ford's combined

vehicle market share, at 12.2%, was the highest for eleven years, with three of

the eight best-selling cars. In 1995, in the United States, five of the ten top-

selling vehicles were Ford, including the best-selling car (Ford Taurus) and

best-selling truck (F-series).

On January 1, 1995, Ford merged its North American Automotive Operations and its

European Automotive Operations into a single organization, Ford Automotive

Operations. Instead of being organized by geographic regions, the Company is now

realigned by product line, with five Vehicle Centers, each responsible for one

group of products worldwide. At the same time, Ford is reducing the time taken

to develop a new vehicle from 48 to 24 months and reducing engines,

transmissions, and basic vehicle platforms by 30% worldwide. Ford hopes that by

pooling global skills and resources will result in more variations on each

vehicle platform, increasing the number of vehicles introduced over the next

five years by 50%.

One of the key strategies behind the realignment has been growth. Ford has

launched a variety of new initiatives throughout the world, with joint ventures

for the assembly of vehicles in countries as diverse as China, India, Thailand

and Vietnam. In China, Ford expects to begin production of light trucks with a

company named Jiangling Motors in the near future. In India, Mahindra Ford India

Ltd. will begin manufacture and distribution of Ford products, beginning with

the Ford Escort, in mid-1996 and Fiesta in 1998. In Thailand, Ford has a joint

venture to produce pick-up trucks and in Vietnam, Ford plans to build a vehicle

assembly plant at Hanoi, together with partners Song Cong Diesel. In Poland, the

Plonsk plant has begun to build Escorts and Transits.

Joint ventures are establishing a presence for Ford all over the globe. Ford is

working with two companies in Korea, one to supply automotive air conditioning

units and the second as a new joint venture to produce electronic components

later this year. In addition to the 20% of Jiangling Motors, China, acquired by

Ford in 1995, four further manufacturing joint ventures in China have been set

up to produce radiators, glass, plastic and electronic components. Ford has also

acquired a 45% equity in South African company, Samcor, for the assembly of Ford

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