Ford Motor Company: Executive Summary

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The Ford Motor Company board of had a meeting in September 2012 to discuss succession plans for current CEO Alan R. Mulally. The company has said that due to competitive reasons, they do not discuss succession planning externally, but that they do have a solid plan in place (nytimes.com). Mulally joined the company from Boeing in 2006, and has led a remarkable turnaround without taking money from the government unlike GM and Chrysler. Although he has said publicly that he does not know his retirement plans, it was announced recently that he will remain CEO at least through 2014. Chairman, William C. Ford Jr., has said Mulally can remain in the position as long as he wants. The most likely candidate to replace …show more content…

Ford launched a new strategy to increase market share revenue by producing “smart cars” with great fuel efficiently. The company has started a centralized decision making system, allowing the company to explore local and international market opportunities. Management has become much more involved in product development to satisfy customer expectations and communication has vastly improved (wpsenna.wordpress.com). This strategy has also cut a lot of excessive operations cost as well. Raw materials were greatly reduced and the online manufacturing process allows for one process of engineering and production rather than segmentation. This gives Ford a major cost advantage over its …show more content…

This is an increase of 603 million over 2012. Although the fourth quarter profit was down over lat year, this represents 18 straight quarters of profit. This ranks among the best in company history. The automotive sector saw 6.9 billion pre tax profit, which made up 80.5 %, while the Financial sector saw 1.7 billion, compared to 1.6 in 2012 (seekingalpha.com). Although the fourth quarter was down over last year, the report is tremendous overall. North America was the best market coming in at 8.8 billion and Europe was a 1.6 billion loss, mostly due to high competition and lack of great reputation. It was a record year for North America. After tax profits for 2013 were 7.2 billion, a 26% increase over last year. Earnings came in at 1.76 per share. On December 31st net receivables were around 100 billion against 89 billion a year ago. Cash flows for the year totaled 6.1 billion, with 500 million coming in the last quarter, making it the 15th straight quarter of positive cash flow. Gross cash of 24.8 billion exceeds debt by 9.1 billion (ford posts full year 2013 pre tax profit of 8.6 billion). The fact that Ford market share is increasing in such a highly competitive North American car market really demonstrates its high quality and reputation. The company does have some major debts on its balance sheet, but

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