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Unformatted text preview: •The Ford Motor Company is an American multinational corporation based in Dearborn, Michigan. •The automaker was founded by Henry Ford and incorporated on June 16, 1903. • Products include Ford, Lincoln, and Mercury brands, Ford had a reputation for building powerful engines with average fuel economy. In 2007 Ford engines were rated for having the lowest mileage ratings of the “big three” Change in Demand
• Gas prices remained rather steadily in the past • Ford and other US auto dealers specialized in large vehicles with low MPG •In 2008 Gas prices reached an all time High •Demand shifted to more fuel efficient vehicles •Ford could not react quickly enough •Foreign auto makers were already in the fuel efficient market Change in Demand Change in Demand Change in Demand Change in the Right Direction
• Ford is now more focus in producing more fuel efficient cars. •The Ford Focus has made the AAA top vehicles picks for commuters. •Ford Motors earns ENERGY STAR Award for Sustained Excellence from the U.S. Environmental Protection Agency •Second quarter net income of $2.6 billion, most profitable in more than a decade Production Production
• Gas powered cars
• • • Meet customers’ requirements Pollute environment Pollute U.S. dependent on foreign oil • Electric cars
• Don’t pollute environment • Don’t meet customer’s Don’t expectations expectations • Hybrid cars
• Decrease harm of gas by also Decrease Production Production
• More hybrid cars means big More changes in production changes • Higher labor costs Higher • Higher material costs • Do assembly workers possess Do requisite skills? requisite • Assembly plants conversion to Assembly hybrid assembly plants? hybrid Finance Finance
• Financial forecasts Sales forecast Sales Cost and expense budget Cost • Identify and analyze costs Identify associated with Going Green Going • Production cost management Finance
• Financial ratios for Financial consideration: consideration: Profitability ratios (margins and returns) and Efficiency ratios Efficiency Liquidity and leverage ratios Liquidity Financial position ratios Financial ...
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This note was uploaded on 10/30/2010 for the course BUS 126 taught by Professor Dadka during the Spring '10 term at UMass Dartmouth.
- Spring '10