Ford Motor Company Financial Analysis
Ford Motor Company was founded by Henry Ford in Detroit, Michigan.
Ford was a skilled craftsman, who used his skills to create an experimental
car in 1896.
He created a two cylinder vehicle that was capable of going up
to 20 mph.
Ford left his primary job in 1899 to create Detroit Automobile
Company and produced the Model A in 1903. The car had an under the floor
engine and sold for $850.
This car sold 1,708 units in its first season.
As Ford refined the product, he became increasingly focused with
In 1904, he released an experimental car, called the 999,
which had a max speed of 91.4 mph.
Later that year, the company also
introduced the Model B and Model C for $2,000.
Ford improved upon the
prototype to create the Model K in 1905 that sold for $2,500.
The 1906 model
was the Model N, which sold for $500.
The Model N undercut Oldsmobile’s
prices and paved the way for Fords most historical innovation in 1909; the
The Model T, also known as the Tin Lizzie, was a very popular model for
several reasons, including the rock-bottom price of $850, low fuel
consumption, large engine size, and a top speed of 40 mph. 15 million Model
T's were produced over the next 18 years and was considered the hallmark
Ford rapidly increased production over the next several
years, despite a major recall of the first million cars in 1922.
their continued production expansion, Ford began selling overseas in Great
Britain, France, and Germany.
The company realized continual innovation was
a necessity to avoid product stagnation, notably with their only car color
As a result, in 1927, Ford stopped production of the Model T
and worked on creating more innovative products that would move both the
company and the industry forward.