US Motor Vehicles and Parts Industry Essay

Introduction

Footings of Mention

Main Findingss

Findingss for SWOT Analysis:

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Strengths:

Ford Motor is presently 2nd in the US Motor Vehicles and Parts Industry, and is 4th in the Global Motor Vehicles and Parts Industry for 2009. Ford appears to hold held onto these topographic points through the planetary economic crises of 2008/09. In add-on, they have besides held onto their topographic point as 7th in 2009 Fortune 500.

Ford Motor Company late has gained more blessing within the US Market due to Ford rejecting the authorities bailout, harmonizing to ( Aloft group ). With 61 % male and 65 % female respondents stating that they have a positive perceptual experience of the Ford trade name image.

Ford Motor Company helps back up non-profit administrations such as Breast Cancer and back uping rushing squads.

Ford extended trader web means that as a planetary company they can make any possible clients within the six continents, no affair where they are in the universe. Traders are still strength to motor companies that industry and distribute autos such as Ford, as they ‘re the face of the company.

Failings:

In the 3rd one-fourth of ’08 Ford ‘s was executing ill within some geographical parts, such as North America where they incurred an operating loss of up to $ 2.6 billion. Volvo besides incurred an operating loss of up to $ 458 million ; which Ford blamed on unfavorable volume and mix, and exchange more than explained the diminution from 2007. Ford Asia Pacific Africa and Mazda merely about broke-even meanwhile Ford Europe although being profitable, they were down from a twelvemonth ago ’07. On the other manus, in the 3rd one-fourth of ’09, Ford as a company had improved their pre-tax operating by $ 3.9 billion compared with Third Quarter ’08. Ford North America had an operating net income of $ 357 million, Ford South America had an operating net income of $ 247 million, Ford Europe had an operating net income of $ 193 million, Ford Asia Pacific Africa had an operating net income of $ 27 million, and Volvo had an operating loss of $ 135 million. This shows that although it may still be considered as a failing, Ford is making something right to seek and alter their failings and turn them into strengths.

Ford ‘s fiscal public presentation appears hapless harmonizing to Fortune 1000 ( ’09 ), which would look to bespeak that so far Ford has made a lessening in gross when compared with the figures for ’08 and ’07. Even more disturbing is that so far for the fiscal twelvemonth ’09 Ford are it would look as though Ford have made a loss in net incomes of up to – $ 15,000 million which is more than three-base hit to the loss that they were doing during the fiscal twelvemonth of ’07 and ’08, which was of about – $ 2,000 million. This shows that Ford has hapless fiscal public presentation between the fiscal old ages of ’08-’09 with a farther loss in net income of about $ 13,000 million. Poor fiscal public presentation of Ford disables them as a company to seek more growing avenues in the hereafter it may besides dent, investors ‘ assurance.

Although these figures indicate that Ford are doing a loss, recent figures that Ford has late published their, 3rd one-fourth ’09 fixed income presentation on the 2nd November, 2009, ( which are merely preliminary consequences ), indicates that so far, for the 3rd one-fourth of fiscal twelvemonth ’09, Ford ‘s automotive sector reported a pre-tax operating net income of $ 446 million, compared with a pre-tax loss of $ 2.9 billion in ’08. Worldwide Automotive gross in the 3rd one-fourth was $ 27.9 billion, up $ 100 million from a twelvemonth ago. The addition, harmonizing to Ford can be explained by favorable net pricing and higher volumes, chiefly within the North American markets.

Opportunities:

Ford supports assorted rushing squads both national and world-wide, from squads take parting in NASCAR, Drifting Championships and the World Rally Championships ( WRC ) which are chiefly held in America. In the UK they have a Formula Ford Championships with more squads in Australia and China. Ford have besides merely unveiled their new 2010 Ford Mustang Cobra Jet with merely 50 planned for production it will shortly be a must hold for their racing squads.

Within about every market there has been talk about green issues, with the members of the G8 issue undertaking and marks to cut down their nursery gases ; it would be an ideal chance for the hereafter. Particularly within the EU, where the European Union are on a regular basis carry oning studies to set up whether or non the states are cut downing the C emanations.

Recently, an accent within Ford has moved from bring forthing trucks, towards bring forthing more efficient vehicles that do n’t utilize up that much fuel. One of the best illustrations of this merchandise is intercrossed autos. Hybrid autos use both burning and electric engines. The intercrossed engine is used when the auto is in traffic for illustration, within busy metropolis Centres or when there is a low velocity bound, meanwhile the burning engines can be used while at high velocities such as on the expressway. As a consequence, this would drastically cut down clients passing on fuel, and hopefully assistance in the promotion of new engineering which are so called “ green ”.

The recent enlargement into Asiatic markets would look to be profiting Ford well, with a new, joint venture with the Japan ‘s auto maker Mazda. Ford invested $ 500 million for a new works to get down bring forthing little rider autos in southeast Thailand. The new works will be bring forthing Ford Fiesta and Mazda2 theoretical accounts. The new Thailand works will be bring forthing little autos for the whole of Asia. The autos will so be shipped within the “ ASEAN ”, the Association of South East Asiatic Nations ( ASEAN ) is made up of 10-countries. In the 3rd one-fourth of 2009, Ford have reported that the Asia Pacific and Africa have made $ 23 million in pre-tax operating net income when compared to that of a twelvemonth ago, ( Ford3Q2009Financials ).

Menaces:

Although there may non be any menaces from new competition come ining into the motor vehicles market, there still is a high figure of rivals that have already established themselves. Such illustrations are General motors, within the US market and Toyota Motor, Volkswagen, General Motors and Honda motor within the planetary market. These are merely the major Motor Vehicles and Parts companies harmonizing to the Fortune 500.

As a consequence of the current economic clime, there would hold been a crisp diminution in consumer disbursement on luxury / expensive points. As can be seen by the -15.2 % alteration in gross between 2007 and 2009 ( Fortune500 ). This alteration is non merely noticeable in the loss of Fords gross but besides in that of General Motors, as a consequence of increasing fuel monetary values. It may even hold lead to consumers looking for cheaper options non merely H2O and electric autos which are mentioned below, but besides public conveyance such as coachs, trains, taxis and bikes.

Other menaces include H2O and electric autos, which both Peugeot and Mitsubishi ( Mitsubishi innovative Electric Vehicle or i-MiEV ) have started to, look and put in. There ‘s even information sing how people can seek and change over their current autos to utilize H2O. this non merely is a menace but if this thought catches on and people do get down seeking to change over their autos to utilize H2O, so it could hold a big impact on gross revenues to all the Motor Companies and non merely Ford. This is even more likely now with the manner the planetary economic clime is in.

A possible menace, that Ford might hold is the association between them and Law Enforcement. As they are the chief suppliers of jurisprudence enforcement vehicles in the US, this association would be a negative 1 that may act upon possible clients to travel to their rivals.

Findingss for PESTEL Analysis

The PESTEL Analysis is a tool which examines the political, economic, sociocultural, technological, environmental, and legal contexts in which a house maps. Politically talking, there are no direct deductions of political factors on Ford motors.

Political:

The US authorities provided a clump of American companies with money from revenue enhancement remunerators in order for them to seek and last. Ford motor rejected that money. Leading to better trade name image.

There are no direct deductions of political factors on Ford motors. Most of the operations are being outsourced to states such as India and China. In China, where there are some countenances in topographic point, the administration may be forced to pay more revenue enhancements to the authorities.

Economic:

The recent recession and recognition crunch have had a negative impact on the administration, which lead them to inquire for the support of local authoritiess by offering financess. In add-on, last twelvemonth the rise in oil monetary values severely affected the administration and besides the dollar value when it fell to its lowest. Economic factors have a immense impact on any administration.

Sociocultural:

Cultural issues affect every administration and the best manner to get the better of these issues is to guarantee that the administration follows local civilization at all times. It is of import that the administration ensures that they follow local civilization in every state they are located as this ensures their success. Besides, Ford undertakes corporate societal duty supplying basic wellness attention to all its employees and other chances as good.

Technological:

Technology is ever developing, which has ever allowed Ford to upgrade its systems at all times. Most of the new workss presently have new Nipponese engineerings in topographic point. Quality systems play a major function and merely in clip systems is an old construct that has been in topographic point for a long clip. Technology has ever helped the administration to run into demands and guarantee high quality goods were provided at all times.

Ford should present a assortment of planetary environmental engineerings that provide clients with a more fuel efficient autos, breathing less greenhouse gases and this by offering clients moderately priced, environmentally friendly autos.

Ford should believe about solutions that reach non merely 1000s of autos, but all autos, in order to do a difference in the planetary market.

Environment:

Since the past few old ages, there has been a committedness undertaken by assorted authoritiess to cut down nursery gases that affect our ambiance and environment. There is a force per unit area on auto makers to guarantee that new autos with lower emanations are produced in a much better manner. In add-on, there is besides new statute laws that may farther do it more hard for makers or even do it expensive for makers to bring forth autos with low C emanations.

Legal:

There are many legal challenges that may impact the administration along with new environmental ordinances that are coming in topographic point.

Findingss for Porters Five Forces

Degree of Rivalry

Industry Growth Rate- In 2013, the market is forecast to hold a value of $ 1,831 billion, an addition of 23.8 % since 2008. With this estimated growing rate of the car industry, Ford have an chance to besides turn and spread out its net incomes. However, in recent old ages growing has declined and has really fallen which would take to a higher grade of competition due to the fact that as one company increases their net incomes it is taking off from its rivals. In order for Ford to to the full take advantage of this forecasted growing… … … …

High Fixed Costs- Fixed costs, such as rent, belongings revenue enhancements and insurance, do n’t change depending on production degrees. Variable costs, such as steel, aluminum, cargo, revenue enhancements and inducement payments, do. These automotive fixed costs are high and so all of Fords challengers would necessitate to maintain their volume up to cover these costs, which makes Fords grade of competition high.

Intermittent Over Capacity- The car industry does hold a high grade of intermittent overcapacity as supply can merely be increased in big volumes due to the nature of production, adding excess labour displacements to a fabrication works. This for Ford will besides take to a high grade of competition as the supply needs to be sold in order to cover costs and finally make net income.

Merchandise Differences- Since the merchandises in the automotive industry are basically the same, Ford would necessitate to utilize their niche clients by aiming them with particular theoretical accounts such as the Shelby GT, which entreaties to auto partisans.

Brand Identity- Ford is an all American symbol with a strong trade name individuality as it is a long standing well-known company.

Industry Concentration- The planetary cars industry is extremely concentrated with the top four market participants holding about 38 % portion of the market ‘s value. Competition in the industry remains intense despite the market growing in recent old ages and is even ferocious due to glooming economic system in the terminal of 2008 and 2009.

Diverseness of Rivals- The diverseness of Fords challengers can order the degree of competition in the industry as some of them do n’t hold to entirely trust on how good they are making in the automotive industry.

Exit Barriers- Fords barrier to issue is really due to the fact that there is a batch of capital tied up in machinery and Production workss. Meaning that the competition that Ford faces is high as companies would be unwilling to go forth the industry.

Supplier Power

Differentiation of Inputs- Ford ‘s providers supplies them with natural stuffs such as Fe and other types of metals. Due to the fact that Ford needs high quality supplies, their provider ‘s power is high. The trust on their providers may be lessened slightly as Ford is a large company and can derive its supplies from a scope of different providers.

Switch overing costs- The shift costs are moderate for Ford due to the fact that in order to derive economic systems of graduated table, big orders would necessitate to be placed. Besides, happening an option may non be easy, therefore make exchanging costs high. Harmonizing to a study by Automotive News, Ford has stated that the latest callback of 4.5 million vehicles related to a decade-long self-generated burning issue stemming from a defective sail control switch will be the last related to the job.

Menace of Forward Integration- Ford has about no menace of forward integrating from its providers as the two industries are so different.

Importance of volume to supplier- Ford is, to the provider, a low volume purchaser. This will increase the provider ‘s power as they do non trust on Ford to do a net income. The natural stuffs Ford uses are popular in many industries.

Supplier concentration- Reliance on providers is kept to a lower limit by utilizing a broad scope of companies. For illustration Toyota and Honda guarantee that no individual provider histories for more than 5 % of purchases of major inputs.

Menace of Substitutes

Switch overing costs- The menace of replacements in this case is high as the cost of exchanging is really low. Consumers can choose to take public conveyance and the shift costs would be merely the cost of a ticket. The progressively high fuel monetary values make this an attractive prospect..

Buyer Propensity to Substitute- Ford ‘s purchasers are non that probably to exchange to a replacement as all other options have their disadvantages. For illustration there is a loyal client base for new autos as they want the new safety characteristics and engineering a new auto can supply.

New Entrants

A tight competition is really common for a house in the automotive industry. Competition is lifting with the menace of new entrants invariably fluxing into the market from South Korea, China, and new workss in Eastern Europe. For illustration, when Honda Motors opened their first works in Ohio.

Buyer Power

Backwards Integration- The menace of backwards integrating is low as the purchasers of Ford ‘s merchandises do non hold the capital as they would necessitate to purchase expensive natural stuffs and build production workss, or the accomplishments needed to run a successful auto company.

Findingss for the Value Chain Analysis

Overview

Ford Corporation values its research and development activity as one of its nucleus competences and primary net income engines. Ford specifically states that it views its engineering and the development thereof as being a cardinal nexus in its value concatenation: “ technology-a yesteryear, present and future strong suit for Ford. They routinely invest to a great extent in researches this sum of fiscal investing in this nucleus competence informs both analysts and stakeholders where the first nexus in Ford ‘s value concatenation is. The value concatenation can be described as, “ … the sequence of major concern activities that add public-service corporation ( usefulness ) to the merchandises or services provided by an organisation to its clients ”. With that in head, Ford can be subdivided into the constituents that add value to each procedure consisting the production and bringing of its merchandises and services which are all engineering related or dependent. The grounds for analyzing Ford in this regard are many, but put compactly, being cognizant of Ford ‘s value concatenation and its constituents, “ … will give the greatest competitory advantage… ” Establishing competitory advantage in today ‘s market place has taken on proportions of mythic importance given that today ‘s rivals may originate from any part and in many signifiers.

The Value Chain

“ As a major transnational endeavor, Ford activities have far-reaching impacts on environmental, societal and economic systems. ”

Value concatenation analysis is to concern direction what Gestalt Theory is to psychology, and in this regard, by dissecting the interoperability of its sections in footings of value-added benefits Ford can find that some parts of the whole are non as utile or necessary as antecedently thought ( “ Value ” ). Ford ‘s executive leading has managed to maneuver the company from the precipice of fiscal ruin to amazing success by concentrating the organisation ‘s activities on its value concatenation ( See Appendix 2 ).

The effectivity of this focal point on R & A ; D as the primary nexus in the value concatenation is evident in Ford ‘s fiscal turnaround where it reported pre revenue enhancement net incomes of ( $ 997m ) in 2009, compared with a loss of $ 161m a twelvemonth earlier. Gross was $ 30.9bn, down $ 800m on a twelvemonth ago. They cut cost despite the downswing in economic delivery its entire decrease for the year-to-date to $ 4.6bn. The clear displacement in corporate scheme that resulted from this reworking of its value concatenation was that Ford moved from a merchandise oriented company to a service oriented company because that was what was bring forthing most of its inbound logistics travel.

Fiscal Analysis

The US elephantine car manufacturer said it was doing “ enormous advancement despite the slack in the planetary economic system ”.

Ford ‘s portions closed up 8.3 % following the proclamation.

The house besides said it expected to be “ solidly profitable ” during 2011.

While it is certain that Ford, being motor industry company to a great extent dependant on a value concatenation centred on intangible services, is susceptible to a certain sum of instability in the planetary market, its fiscal wellness should let it to endure any periodic downswing. “ Especially since Ford has cut costs by $ 1bn during the one-fourth, conveying the entire decrease for the year-to-date to $ 4.6bn.

This exceeds the mark of $ 4bn that the car manufacturer set itself for the whole of 2009. ”

It said these decreases came from lower fabrication costs due to improved productiveness and staff cuts.

This cut has helped cut down its operating cost construction from about by $ 5bn which is offset by runing hard currency flows of $ 1.4bn. It is clear the Ford non merely redefined its value concatenation but it right assigned the appropriate resources to its key

Ford ‘s net income borders are solid but non model. The company is still cutting down its cost and deriving efficiencies and Their solid merchandise line-up is taking the manner in all markets, ” said Ford foreman Alan Mulally.

“ While they still face a ambitious route in front, One Ford transmutation program is working and our underlying concern program continues to turn stronger. ”

SWOT Matrix ( options and schemes for Ford )

SO Schemes: Use strengths to take advantage of chances

The fact that Ford Motor is ranked the 2nd in the US Motor Vehicles and Parts Industry, and is ranked 4th in the Global Motor Vehicles and Parts Industry for 2009 is a major strength they could take advantage of. Using their ranking, Ford could take advantage of free promotion within the racing universe, which would profit them as it allows them to make a big possible client base. Ford already supports and participates in assorted rushing tourneies both nationally and globally. ( Research and Development, clients benefit, the spot Carlos explained! ! )

They spend a batch of money into developing race autos, so that engineering is implemented into normal vehicles for a fraction of the cost.

Ford invests a batch of money into

The research into engineering to take part in races will be past on to ford vehicle consumers such as ford focal point or Ford fete.

In add-on, Ford could develop environmentally friendly engineering by utilizing their ranking and trade name image, along with their support of rushing squads. Using environmentally friendly intercrossed engineering and renewable powered autos benefits them greatly because autos utilizing intercrossed engineering have lower fuel emanation and better milage, which would therefore besides better Ford ‘s trade name image within the US market.

Ford can better their trade name image by back uping non-profit administrations ( charities ) through rushing squads. They are already back uping chest malignant neoplastic disease through warriors in pink run, and through donating money for every auto that is test driven. Supporting non-profit administrations improves trade name image and besides increases trade name trueness.

WO Schemes: Overcome failings by taking advantage of chances

In order for Ford to get the better of their failings, they can take advantage of their chances in the undermentioned ways. They could utilize the fact that they have expanded into Asiatic markets in order to better their public presentation in geographic part.

Ford can get the better of their hapless public presentation geographically by utilizing intercrossed engineering and renewable powered autos.

In order for Ford to get the better of their hapless fiscal public presentation in the US market, they could utilize intercrossed engineering.

ST Schemes: Use strengths to avoid menaces

Ford has advantages which they could utilize in order for them to avoid possible menaces. For illustration, they could utilize their ranking, trade name image, and extended trader web to avoid menaces from competition.

Besides, they could utilize their trade name image and extended trader webs to get the better of menaces of bring forthing jurisprudence enforcement vehicles.

Another manner they could utilize their strengths to avoid menaces is by utilizing their ranking to get the better of utility autos such as electric autos and H20 autos. There are companies which are below Ford in ranking, such as Mitsubishi and Peugeot, which are besides bring forthing these autos.

WT Schemes: Minimize failings and avoid menaces

Ford can utilize their failings and minimise them, in order to avoid possible menaces. For illustration, they could utilize intercrossed engineering to better hapless fiscal public presentation in the US market, and hapless public presentation of geographic parts to avoid the economic menace and the increasing fuel monetary values.

Porters 5 Forces

After analyzing Ford Motor carbon monoxide ‘s current state of affairs utilizing the porters 5 forces model there are a figure of issues which Ford can turn to and take advantage of to guarantee future growing and success these being foremost the Motor Industry ‘s jutting growing rate, secondly Ford ‘s high fixed costs thirdly Ford ‘s purchasers ‘ leaning to replacements.

Ford operates within the Motor Industry and this industry, although has late been traveling through a downswing has a projected growing rate for 2013 ; of $ 1,831 billion, an addition of 23.8 % since 2008. This for Ford is a good state of affairs as it gives the company an chance to accomplish a higher position and even repossess its place of 3rd in the planetary motor industry. The growing is most surely spurned from the fact that developing states such as India and China, one time the recession is over will hold an increased demand for cars to fit their new life styles. Ford already a participant in these states, can do the most of this advantageous state of affairs by developing little autos that are popular in these countries and developing advertisement runs in these states to do certain that the consciousness of their merchandises are high. Through this increased consciousness and bringing of the merchandises the consumers want Ford could so harvest the wagess of the jutting growing. Closer to place in North America Ford can besides take advantage of this projected growing by carry oning studies to demo how the populace ‘s demands and wants have changed in footings of autos that have greater MPG and autos that use renewable beginnings. So that they are decently prepared and outfitted to derive more market portion by replying these demands by puting more money in the development country of circuit board and hydro autos so that they are a world in the close hereafter.

Besides an country that Ford motor carbon monoxide needs to turn to in order to go more competitory in the car market is to turn to the already high fixed cost in the industry by trying to cut their fixed costs. Due to the fact that Ford ‘s fixed cost are so high it means that they would necessitate to guarantee that sale gross stays high in order to avoid taking loses. However, in this presently glooming economic system increasing gross revenues gross in the short-medium term may be hard. In this case Ford would necessitate to seek and cut their fixed costs. To make this Ford will necessitate to shut some of its production workss and carry on a leaner operation where its demand can be met by fewer workss through increased efficiency.

To increase this efficiency Ford may necessitate to develop their workers better in utilizing the machinery to cut down on wastage. Better preparation may besides let them to utilize the machines more efficaciously to bring forth many different theoretical accounts utilizing the same machinery. This may non be possible in some instances this would intend that Ford would necessitate to put in more up to day of the month machinery. Costly in the short term but would be extremely good in the medium to long term. Another manner to cut these fixed costs would be to outsource their labor more than they are presently. Labor costs in states such as India where the labor costs are the lowest in the universe. This would cut the salary figures well and therefore ease the fixed costs of Ford assisting to increase net income borders.

Another point that Porters 5 forces has highlighted is Ford ‘s purchasers ‘ leaning to replace. Substitutes outside of Ford industry rivals are public conveyance and used autos. In order to guarantee that their purchasers do non exchange from their new merchandises is to go on to develop safety characteristics that are attractive to their mark markets. By puting more money in their safety research and development they can come up with new innovations for case when they developed the 3-point seat belt. This would derive them high safety evaluations in magazines and could be a alone merchandising point that they could widely utilize to derive more possible clients who place importance on safety for illustration parents and the aged. Another scheme that Ford could follow is one that its rivals such as Nissan are utilizing: “ Nissan has gone one better from the just-announced cash-for-scrap inducement strategy. Where the govt. restricts the & A ; lb ; 2000 offer to autos that are at least 10 old ages old, Nissan extends it to autos which are merely eight – providing that the auto bought is British-built. ” Taken from hypertext transfer protocol: //www.motors.co.uk/cars/news/nissan-offers-cash-for-scrap-deal-on-newer-cars

An article on Nissans newest bit inducement published April 2009.

This would cut the sum of consumers looking to purchase used autos as they get a certain sum of money off of a new Ford auto. Hopefully this alone will do consumers leaning to replace less. They already have a similar programme called hard currency for clunkers. Where purchasers trade-in a gas guzzler for a more fuel efficient auto and have seen addition in gross revenues. If they spread this to all autos that are of a certain age more gross revenues can be expected.

Decision

Appendixs

Appendix 1

Ford Third Quarter ’08 and ’09 Preliminary Net incomes

Third Quarter ’08

2008 Third QUARTER OPERATIONS RESULTS

  • Ford North America incurred an operating loss of $ 2.6 billion ; lower volume and unfavourable production mix more than explained the diminution from 2007 consequences.
  • Continued strong consequences at Ford South America with an operating net income of $ 480 million.
  • Ford Europe was profitable, but down from a twelvemonth ago.
  • Volvo incurred a $ 458 million operating loss ; unfavorable volume and mix, and exchange more than explained the diminution from 2007.
  • Ford Asia Pacific Africa and Mazda were each about breakeven.
  • Financial Services had an operating net income of $ 159 million.
  • Ford reduced costs by $ 300 million compared with 2007, despite trade good cost additions of more than $ 1 billion ; Ford North America remains on path to accomplish or transcend our $ 5 billion cost decrease end.

ACHIEVING OUR PLAN — Cardinal Third QUARTER ’08 PRODUCT ACCOMPLISHMENTS

  • Launched the new 2009 Ford F-150 life-size pickup with best-in-class capableness and unexcelled fuel economic system. The F-Series remains the No.1-selling truck in America for 31 old ages running.
  • Launched the new Ford Fiesta little auto in Europe, the first of Ford ‘s new planetary little autos. Production began in Cologne, Germany, and the auto is now traveling on sale in Europe. Fiesta besides is get downing to now travel on sale in Asia and will be introduced in North America in early 2010.
  • Debuted at the Paris motor show the all-new Ford Ka, a fashionable subcompact auto that goes on sale in Europe tardily this twelvemonth and is featured in the new James Bond film “ Quantum of Solace ”.
  • Launched the Ford Focus in China and the Ford Escape in cardinal Asia Pacific and Africa markets.

ACHIEVING OUR PLAN — Cardinal Third QUARTER ’08 BUSINESS ACCOMPLISHMENTS

  • Improved vehicle quality once more, taging four back-to-back old ages of advancement. Ford, Lincoln and Mercury vehicles jointly reduced things gone incorrect by 7.7 per centum compared to last twelvemonth, drawing into a statistical tie with Honda and Toyota a top the list of seven major car manufacturers in the U.S. Global Quality Research System survey.
  • Achieved the taking figure of “ Top Safety Picks ” from the U.S. Insurance Institute for Highway Safety with the 2009 Ford Flex and Lincoln MKS gaining top honours. This builds on Ford ‘s accomplishment of the most U.S. authorities 5-star safety evaluations in the car industry.
  • Reduced North America salaried forces costs by about 15 % and reduced hourly forces by about 3,000 since the terminal of Second Quarter.
  • Volvo announced reconstituting programs to cut down salaried forces by an extra 3,300 and bureau forces by an extra 700, conveying the entire planned Volvo forces actions to about 6,000 worldwide since June.
  • Ford Credit continues to put to death its support program and increased its liquidness available for usage to about $ 25 billion despite a really ambitious recognition market. Ford Credit continues to back up Ford ‘s nucleus concerns.

Third QUARTER EARNINGS CONFERENCE CALL for NOVEMBER 7, 2008.

( PRELIMINARY RESULTS )

PDF File Downloaded from the undermentioned site:

hypertext transfer protocol: //www.ford.com/about-ford/investor-relations/company-reports/financial-results

BUSINESS OVERVIEW by Alan Mulally, President and Chief Executive Officer

Third Quarter ’09

TOTAL COMPANY 2009 THIRD QUARTER PRE-TAX OPERATING RESULTS

  • Entire Company pre-tax operating consequences improved by $ 3.9 billion compared with Third Quarter 2008 and $ 1.5 billion compared with Second One-fourth 2009.
  • Ford reduced automotive structural costs by $ 1 billion compared with Third Quarter 2008 ; Ford North America structural cost decreases were $ 500 million.
  • Ford North America had an operating net income of $ 357 million.
  • Ford South America had an operating net income of $ 247 million.
  • Ford Europe had an operating net income of $ 193 million.
  • Ford Asia Pacific Africa had an operating net income of $ 27 million.
  • Volvo had an operating loss of $ 135 million.
  • Financial Services had an operating net income of $ 661 million.

ACHIEVING OUR PLAN — Cardinal 2009 Third QUARTER BUSINESS HIGHLIGHTS

Began production of the Ford Transit Connect little commercial new wave at the new fabrication works in Craiova, Romania.

  • Announced an investing of $ 500 million at Ford India ‘s Chennai assembly works to construct the new Ford Figo, a little auto targeted at the bosom of the Indian market, debuting in 2010.
  • Announced a new $ 490 million assembly works in Chongqing, China, which will be completed by 2012 and will bring forth the Ford Focus for the Chinese market.
  • Ford, Lincoln, and Mercury trade name vehicles in the U.S. had the fewest figure of “ things gone incorrect ” among all car manufacturers, harmonizing to the Third Quarter GQRS survey of new vehicle quality.
  • Received $ 886 million in loans from the U.S. Department of Energy for development of more fuel-efficient vehicles. Ford has been approved for up to $ 5.9 billion in loans in support of projected outgos through mid-2012.
  • Raised $ 565 million in new equity as we completed our previously-announced program to publish up to $ 1 billion of equity.
  • Ford Credit completed $ 10 billion in support in the Third Quarter ; including $ 2.8 billion unbarred, and now has basically completed its full twelvemonth support Plan.

ACHIEVING OUR PLAN — Cardinal 2009 Third QUARTER SALES HIGHLIGHTS

Ford once more increased year-over-year market portion in North America, South America, and Europe and continued to accomplish betterments in dealing monetary values and borders. Ford maintained market portion in the Asia Pacific Africa part and Volvo gained market portion.

  • In the U.S., Third Quarter market portion increased 2.2 per centum points compared to last twelvemonth as the Ford, Lincoln, and Mercury trade names all posted gross revenues additions.
  • Ford Europe ‘s market portion was 9.2 % for the one-fourth, up six-tenths of a point from last twelvemonth and the highest Third Quarter degree in 10 old ages. Market portion was 10.1 % in September, the highest monthly portion in eight old ages.
  • Record growing in China continued as Ford Third Quarter gross revenues jumped 63 %.
  • At the terminal of the Third Quarter, world-wide gross revenues of the new Ford Fiesta reached 470,000 units since its launch last autumn. The No. 2 best-selling auto in Europe posted its highest September gross revenues since 1994. In September, Fiesta besides had its best gross revenues month of all time in China. Fiesta arrives in the U.S. market in 2010.
  • Began selling the all-new Ford Taurus and Transit Connect in North America. Taurus gross revenues in September were up 60 % from a twelvemonth ago.
  • The Ford Focus and Escape were among the top new vehicles purchased in the U.S. authorities ‘s “ Cash for Clunkers ” plan.
  • Ford ‘s U.S. intercrossed gross revenues have risen 73 % this twelvemonth compared to a 14 % diminution in U.S. intercrossed industry gross revenues. More than 60 % of Ford Fusion Hybrid gross revenues have come from non-Ford proprietors.

ACHIEVING OUR PLAN — Cardinal 2009 Third QUARTER PRODUCT HIGHLIGHTS

The all-new Ford Taurus and Lincoln MKT both earned a “ Top Safety Pick ” from the Insurance Institute for Highway Safety. Ford Motor Company continues to hold more IIHS “ Top Safety Pick ” evaluations than any other car manufacturer.

  • Unveiled the all-new C-MAX at the Frankfurt Motor Show. The C-MAX and the Grand C-MAX will debut in Europe in 2010, and the Grand C-MAX introductions in the U.S. in 2011. The new planetary C-car platform will underpin up to 10 theoretical accounts and more than 2 million units yearly by 2012.
  • Announced that Ford ‘s 1.6-liter and 2.0-liter four-cylinder EcoBoost engines will do their introduction in 2010 across Europe, North America, and Australia.
  • Unveiled the new Ford Figo to vie in India ‘s little auto section get downing in 2010.
  • Launched the new Ford Fiesta in Taiwan and continued the successful rollout of the Ford Focus and Ford Everest SUV in extra Asiatic markets.
  • Revealed the new 2011 Ford F-Series Super Duty and two new power trains developed by Ford ; a 6.7-liter V8 Diesel engine and a 6.2-liter V8 gasolene engine.
  • Began selling the 2010 Ford F-150 SVT Raptor, an off-road public presentation truck, which captured the “ 2009 Pickup Truck of Texas ” award from the Texas Auto Writers. The Ford F-150 won the overall “ Truck of Texas ” award, the 7th consecutive twelvemonth a Ford truck has earned the honor.

Third QUARTER EARNINGS CONFERENCE CALL for NOVEMBER 2, 2009.

( PRELIMINARY RESULTS )

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BUSINESS OVERVIEW by Alan Mulally, President and Chief Executive Officer

Appendix 2

Ford Motor Company Vehicle Brands

Ford

The really first member of the Ford Motor Company household of trade names, Ford offers distinctively designed and low-cost vehicles for the universe ‘s varying life styles. From the Model T-the auto that foremost brought driving to the people-to more recent front-runners like the Mustang in the United States, the Mondeo in Europe, the EcoSport in South America and the Territory in Asia, Ford vehicles have been among the universe ‘s most popular autos, trucks and SUVs.

Brief History

Ford Motor Company began with merely Ford vehicles in a waggon store in Michigan. To to the full understand the kernel of this founding member of the household trade names, merely expression at the early history of Ford Motor Company, from Henry Ford ‘s earliest automotive experiments to the Model A, Model T and beyond.

While value for money has ever been a top precedence in developing Ford vehicles, that concern has ne’er compromised quality or the chase of quality solutions. Ford has ever strived to run into consumers ‘ real-life requirements-from smaller autos for Europeans to “ smarter ” autos for the ever-changing environment.

Lincoln

Since 1921, Lincoln has remained an American icon of alone luxury. Today, Lincoln continues to capture the kernel of the American spirit. Like the really best of dynamic American design, Lincoln takes an unapologetic attack to luxury-one that embraces elegance, proportion and a balance of exuberance and restraint.

Brief History

Ford Motor Company acquired Lincoln Motor Company in 1922 for $ 8 million. Lincoln became the first “ foreigner ” to fall in the Ford household of trade names and initiated Ford Motor Company ‘s entry into the field of luxury vehicles.

Lincoln ‘s vehicle history is dominated chiefly by a few germinating lines of luxury autos, including the Continental, improved with each new theoretical account twelvemonth to run into the trade name ‘s end of supplying “ indulgence at its finest. ”

Mercury

Mercury ‘s vehicle development continues today to endeavor toward the ideals of a sophisticated and cagey pick for the consumer.

Brief History

Mercury is alone within the Ford Motor Company household as the lone vehicle trade name other than Ford to be created from within the company. In the mid-1930s, direction at Ford Motor Company began to place a spread in merchandise line between the economical John fords and the luxury Lincolns. Mercury was developed to make full that spread and convey Ford Motor Company a competitory border.

Conceived as a balance of luxury and affordability, Mercury has proven a versatile and digesting trade name over the old ages.

Volvo

From the universe ‘s first three-point safety belt to the universe ‘s first safety-concept auto, Volvo has set the criterion for automotive safety since 1927. Volvo ‘s on-going committedness to safety, the environment and invention remains as strong today as it was over 80 old ages ago.

Brief History

Volvo was born on April 14, 1927, when the first auto, 4, nicknamed ”Jakob, ” left the mill in Gothenburg. The Swedish company began over a crawfish tiffin between two friends, Assar Gabrielsson and Gustaf Larson.

Volvo ‘s first six-cylinder auto, the PV651, was introduced in 1929 and rapidly became the criterion for taxis throughout Sweden. In 1955, Volvo began exporting to the United States, and in 1966, the Volvo 164 was named “ the universe ‘s safest auto. ”

On March 8, 1999, Volvo stockholders approved the sale of Volvo autos to the Ford Motor Company. As portion of the Ford Motor Company household of trade names, the new millenary started really good, with the company selling 422,100 vehicles in 2000, a record twelvemonth. In 2002, the long-awaited XC90-Volvo ‘s first true SUV-was unveiled in Detroit and won North American International Auto Show Truck of the Year in 2003.

Lincoln

Since 1921, Lincoln has remained an American icon of alone luxury. Today, Lincoln continues to capture the kernel of the American spirit. Like the really best of dynamic American design, Lincoln takes an unapologetic attack to luxury-one that embraces elegance, proportion and a balance of exuberance and restraint.

Brief History

Ford Motor Company acquired Lincoln Motor Company in 1922 for $ 8 million. Lincoln became the first “ foreigner ” to fall in the Ford household of trade names and initiated Ford Motor Company ‘s entry into the field of luxury vehicles.

Lincoln ‘s vehicle history is dominated chiefly by a few germinating lines of luxury autos, including the Continental, improved with each new theoretical account twelvemonth to run into the trade name ‘s end of supplying “ indulgence at its finest. ”

More Information

Visit the Lincoln Vehicles web site or name 800-521-4140

Mercury

Mercury ‘s vehicle development continues today to endeavor toward the ideals of a sophisticated and cagey pick for the consumer.

Brief History

Mercury is alone within the Ford Motor Company household as the lone vehicle trade name other than Ford to be created from within the company. In the mid-1930s, direction at Ford Motor Company began to place a spread in merchandise line between the economical John fords and the luxury Lincolns. Mercury was developed to make full that spread and convey Ford Motor Company a competitory border.

Conceived as a balance of luxury and affordability, Mercury has proven a versatile and digesting trade name over the old ages.

More Information

Visit the Mercury Vehicles web site or name 800-521-4140.

Volvo

From the universe ‘s first three-point safety belt to the universe ‘s first safety-concept auto, Volvo has set the criterion for automotive safety since 1927. Volvo ‘s on-going committedness to safety, the environment and invention remains as strong today as it was over 80 old ages ago.

Brief History

Volvo was born on April 14, 1927, when the first auto, 4, nicknamed ”Jakob, ” left the mill in Gothenburg. The Swedish company began over a crawfish tiffin between two friends, Assar Gabrielsson and Gustaf Larson.

Volvo ‘s first six-cylinder auto, the PV651, was introduced in 1929 and rapidly became the criterion for taxis throughout Sweden. In 1955, Volvo began exporting to the United States, and in 1966, the Volvo 164 was named “ the universe ‘s safest auto. ”

On March 8, 1999, Volvo stockholders approved the sale of Volvo autos to the Ford Motor Company. As portion of the Ford Motor Company household of trade names, the new millenary started really good, with the company selling 422,100 vehicles in 2000, a record twelvemonth. In 2002, the long-awaited XC90-Volvo ‘s first true SUV-was unveiled in Detroit and won North American International Auto Show Truck of the Year in 2003.

More Information

Visit the Volvo web site or name 800-458-1552.

Ford Motor Company Service Trade names

Ford Motor Credit Company

Ford Motor Credit Company is a entirely owned subordinate of Ford. It provides automotive funding for Ford, Lincoln, Mercury and Volvo traders and clients.

Brief History

Ford Motor Credit Company traces its roots to 1923, when Henry Ford, unwilling to promote consumer adoption, experimented with a layaway program to spur gross revenues of the $ 265 Model T.

More than merely a car-loan supplier, Ford Credit was established so Ford Motor Company traders could supply competitory funding services to both persons and concerns. The trade name has been built-in in doing ownership possible for the many clients who can non or make non desire to pay for the full cost of a vehicle up forepart.

Genuine Parts and Service

Genuine Parts & A ; Service offers the dependability of factory-trained care and fixs, handily available through Ford, Lincoln, and Mercury dealerships-assuring superior cognition of your vehicle.

Brief History

Ford Motor Company foremost introduced a Ford and Lincoln Mercury Dealership service trade name in 1991 to assist supply the highest degree of proprietor satisfaction possible. Over the old ages, the service trade name has contributed to much of the vehicle trade names ‘ success, increasing repetition purchases and beef uping proprietor trueness.

Today, Genuine Parts & A ; Service continues to turn by supplying clients echt peace of head. From oil alterations to brake service to name-brand tyres, Ford, Lincoln, and Mercury proprietors know the franchise is the topographic point for all their vehicle demands.

Motorcraft®

Motorcraft® premium parts are the preferable pick of Ford Motor Company. From motor oil to transmittal assemblies and everything in between, Motorcraft® parts provide exceeding quality and tantrum.

Brief History

During the first half of the 1900 ‘s, replacing vehicle parts were, by and big, an reconsideration for most new vehicle makers and most replacing parts available to proprietors were produced by aftermarket parts companies. But we wanted to alter all that.

Ford Motor Company launched this attempt in 1961 by geting the well-known and respected Electric Autolite Company, which was already bring forthing legion replacing parts for Ford vehicles. In 1972, the name was changed to Motorcraft®.

Today, Motorcraft® parts are designed, engineered and recommended by Ford Motor Company for installing on Ford, Lincoln, and Mercury vehicles. hypertext transfer protocol: //www.ford.com/about-ford/company-information/ford-brands

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