Ford Motor Company Address: The American Road Dearborn, Michigan 48121, USA Public Company Incorporated: July, 1918 Employees: 383,300 Sales: $62.17 billion Stock Index: New York, Boston, Pacific Midwest, Toronto, Montreal, London Until recently, the Ford Motor Company has been one of the most dynastic of American enterprises, a factor which has both benefited the company and has brought it to the brink of disaster. Today Ford is the second largest manufacturer of automobiles and trucks in the world, and it’s operations are well diversified, both operationally and geographically. The company operates the worlds second largest finance company in the world, and is a major producer of tractors, glass and steel. It is most prominent in the US, but also has plants in Canada, Britain and Germany, and facilities in over 100 countries. Henry Ford I, the founder of Ford Motor Company, was born on a farm near Dearborn, Mi in 1869.
INTERESTING FACTS · The Model T was the first car produced on an assembly line · The Big Three automobiles producers were Ford, GM and Chrysler. · Ford was founded in 1903 by Henry Ford · GM was founded in 1897 by Ransom Olds · Reorganization of Maxwell Motors created Chrysler Corporation · In 1926 GM introduced Pontiac · In 1928 Chrysler introduced Plymouth · The Model T was Ford’s big seller · You could buy a Model T for $290 · Ford acquired Lincoln in 1922 · Americans preferred closed cars over touring cars (open tops) · GM earned over 80 million in profits in 1923 · Americans drove 198 billion miles in 1929 · Gatsby owned a Rolls Royce
Germany produces 9 percent, Spain, France, South Korea, and Canada each produce 5 percent of the international market in 1997. In the US alone, the auto industry, which includes it’s 500,000 car-related businesses, create 12 million jobs. The automobile is clearly an oligopoly, but each company’s control of the market has gradually diminished because of rising foreign competition. The US has three main auto manufacturers, Japan has five major producers as does Germany. Each of these companies produce differentiated versions of the same product, have control over their products’ prices, and rely heavily on non-price competition.
With about 187,000 employees and 62 plants worldwide, the company’s automotive brands include Ford and Lincoln (Ford Annual Report, 2014). In 2014, Ford automotive made revenue of USD 135.8 billion with a pre-tax profit of USD 4.5 billion (Ford Annual Report, 2014). Ford recorded highest Net Income & profit margins in 2011 the second most profitable year in the company's 109-year history as shown in Table 1 .But much of the profit was attributed to a non-cash gain, as it put a large tax credit from past losses on its balance sheet that will shield it from taxes in the future. Table 1 – Net Income (Source – Ford Annual Report, 2014) The Profit Margins of Ford was always at par or it has been much better compared to General Motors in the past as shown in Table 2 except in 2014. Table 2 – Profit Margin of Ford Vs Competition (Source – Nasdaq.com, 2015) http://www.nasdaq.com/symbol/f/financials?query=ratios The decline in Profit margin in 2014 was because of their less revenue in the North American market where they make good margins with their larger vehicles as shown in Figure
Automotive Industry “If auto manufacturing were a country, it would be the sixth largest economy” The automotive industry is more than 100 years old. It started in Germany and France, and came of age in the U.S. in the era of mass production. Vehicle volumes, efficiency, safety, features and choice have grown steadily throughout the industry's history. It is so synonymous with 20th century industrial development, and so intertwined with its twin marvels, mass production and mass consumption, that it has been called the "industry of industries." Turnover of the auto industry approaches the €2 trillion mark, equivalent to the 6th largest economy in the world.
The Automotive Industry In the U.S., the 2007 market was approximately 15.9 million cars and light trucks sold, down from about 16.5 million the previous year. Production in North America, during 2006, including cars and trucks of all types, totaled 11.8 million produced in America, 2.6 million produced in Canada and 2 million produced in Mexico. Globally, about 53 million new cars were sold in 2007, up from about 49 million the previous year. These estimates are from Scotiabank Group. There are approximately 244 million vehicles in operation in the United States.
The automaker recently revised 2016 guidance, increaseing its full year expectations 25 cents per share. General Motors is the largest of U.S. automakers and generates 35% of its revenue in North America. The company receives the remaining portion of revenues from global markets subject to currency risk from a strong U.S. dollar. This is a concern for GM as they must compete not only with U.S. automakers but also international car makers such as Toyota. That said, the company is positioned to benefit from its investments domestically, new product launches and partnerships.
Introduction Toyota is Japan's biggest car company and the second largest in the world after General Motors. It produces an estimated eight million vehicles per year, about a million fewer than the number produced by GM. The company dominates its home market, with about 40% of all new cars registered in 2004 being Toyotas. Toyota also has a large market share in both the United States and Europe. It has significant market shares in several fast-growing South East Asian countries.
Hyundai motors limited Hyundai motor co. established in the year 1967 which is a south Korean largest auto producer as well as sold up to 659,550 units in the Korean domestic market in the year 2010. Initially Hyundai started with assembling cars and trucks for the ford company in their own factory. In the year 1975 Hyundai manufactured its first car named ‘Hyundai cortina’ in partnership with ford. After two years of time Hyundai has become 13th largest automaker in the world by holding 2% of share of world retail market. Hyundai motors ranked as the fifth largest automaker in the world in the year 2007.
Or a GMC? All of these brands plus more are made by General Motors Company, or better known as GM. GM is the 2nd largest car manufacture in the world (General Motors Company, 2011). They have provided millions, if not more, vehicles to the world. Thanks to GM, many of the popular vehicle brands that are available, they have produced.