Unformatted text preview: earlier versions. Ford will continue to build
its American models like Mustang and highly profitable F-150 series, the One Ford idea will
change the company¶s image globally about what Ford is in terms of its steering handling, door
slamming sound etc.
If the idea of One Ford works as it was planned, it will lead to the series of enormous
benefits to the company and its connected suppliers. One of the biggest is the improvements in
quality will be inevitable to the company. The Ford¶s focus on single C-car manufacturing plant
will reduce the probability of errors more than 50%. In a survey conducted about the quality of
Ford products it was revealed that the Ford¶s 2010 models were ranked at No.1 among other
brands excluding luxury items. The concept of high quality means the lower costs to warranty
and increased resale value to the customers. This will allow the consumers to accept low
discount rates on the Ford products than they already had receiving from decades.
The improvement in quality and increased customer value are key factors that can help
Ford to earn a lot more money. Ford can also increase its operating profit margins from 7% to 13% this will give it more leverage of 7% to its profits in the year 2011. This extra profit can be
used to pay further debt or pay out its dividends.
Ford and GM enjoyed good financial repays in the year 2010 and many industry analysts
are sure that they will further earn big profits in the year 2011. Ford has managed to enter into
the contract with the American worker union for their support and strike free working conditions.
The industry gurus estimated that Ford will pay profit sharing Checks of at least $5000 to its
42,000 union workers, depending on the performance of the company in the market. Since 2000,
this would be the biggest payout by Ford to its union workers. Whereas, the workers at GM are
likely to get less than the workers at Ford because the company didn¶t do quite as well.
Let the time decide who will survive and who will falter the survival war. But one thing
is understood, that those who look ahead of time and their competitors in terms of innovation,
and new techniques as did by Alan Mulally will have greater chance to survive and come up
again regardless of the economic conditions, world and the industry. REFERENCES A Technical Companion to Windows Embedded Automotive 7 (final). Microsoft Corporation.
Retrieved on May 28, 2011 from http://www.webcitation.org/5udrqPG6Z
About SYNC. ford.com. Ford Motor Company. 2010. Retrieved on May 28, 2011 from
Alan R. Mulally., (2011). New York Times Website, Retrieved on May 29, 2011 from
Dolan, Matthew D., and John D. Stoll (2009). Ford Trims Debt 28%. The Wall Street Journal.
Retrieved on May 28, 2011 from http://online.wsj.com/article/SB123902308085992679.html
Durbin, Dee Ann and Tom Kirshner, (2011).Ford 2010 profit highest in a decade as sales rise,
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- Winter '13