MINOR PROJECT REPORT ONFORD MOTORS COMPANYSubmitted in partial fulfillment of the requirements for the award of the degree ofBACHELOR OF BUSINESS ADMINISTRATIONtoGuru Gobind Singh Indraprastha University, DelhiUnder the Guidance of Submitted by MS.Namita Mishra Priya Gupta H.O.D. BBA-III Sem

Enrollment No. 06021301711Session 2012 13Table Of ContentsChapter noChapter namePage no

ACKNOWLEDGEMNT1

STUDENT DECLARATION2

1Introduction3

2Vision, Mission and Objectives6

3History7

4Success Path11

5Roadblocks and Feasible Solutions27

6Future projections30

7Conclusions of the Study32

8Profession Outcome33

9BIBLIOGRAPHY34

LIST OF TABLESTable NoTitlePage No

1Ford motors company profile4

2Ford motors brands12

3Market share figures for 2008 to '1123

LIST OF SYMBOLSS NoSymbolNomenclature & Meaning

1&And

2$Us Dollar

LIST OF FIGURESChapterno

Figure No Page No

1 1.1 Henry Ford 33 3.1 Henry Ford 7

3.2 Ford Quadricycle 7

3.3 Ford Model T 1920 84 4.1 Ford Gt 11

4.2 Ford Fiesta 11

4.3 2010 Ford Flex 12

4.4 Ford F 150 2007 12

4.5 1980 Ford truck 13

4.6 Wilson's Truck Lines Ford 13

4.7 Coca Cola 50's 14

4.8 Ford B700 Bus 15

4.9 Ford N Series Tractor 16

4.10 NYPD Police Car 17

4.11 Orange County Police Department k9 Unit Car 17

4.12 LAPD Police Car 17

4.13 Ford Engine 18

4.14 Nascar Ford Fusion 18

4.15 Ford Focus Rs Wrc 09 19

4.16 Ford Mustang Gt 20

4.17 Ford Focus Flexifuel 21

4.18 Ford Escape plug-in hybrid 22

LIST OF ABBREVIATIONSS NoAbbreviated NameFull name

1SCESouthern California Edison

2VEBAVoluntary Employee

Beneficiary Association

3CNGCompressed Natural Gas

4CFMAChangan Ford Mazda

Automobile

5MIFLMahindra Ford India Limited

STUDENT DECLARATIONI PRIYA GUPTA declare this project report entitled FORD MOTORS COMPANY is an original piece of work done and submitted by me towards partial fulfillment of my gra duate diploma in bachelot of business administration.

(PRIYA GUPTA)2ACKNOWLEDGEMENTThis project work, which is my first step in the field of professionalism, has been successfully accomplished only because of timely support of my well wishers. I would like to pay my sincere regards and thank those, who directed me at every step in my project work.

I extend my thanks to my project guide MS. NAMITA MISHRA for her scholarly guidance, constant supervision and encouragement. it is due to her personal interest and initiative that the project work is published in the present form.

Last but not the least, I would also thank to the staff member of Tecnia Institute of advanced studies , friends who have directly or indrectly contributed in making this project success.

( PRIYA GUPTA )

1CHAPTER-I- INTRODUCTIONCOMPANY PROFILEFord Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford owns a small stake in Mazda in Japan and Aston Martin in the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2010 Ford sold Volvo to Geely Automobile. Ford discontinued the Mercury brand after the 2011 model year. The company is controlled by the Ford family, which owns a controlling stake in Ford Motor.

Fig 1.1 Henry FordFord introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines; by 1914 these methods were known around the world as Fordism. Ford's former UK subsidiaries Jaguar and Land Rover, acquired in 1989 and 2000 respectively, were sold to Tata Motors in March 2008. Ford owned the Swedish automakerVolvo from 1999 to 2010. In

2011, Ford discontinued the Mercury brand, under which it had marketed entry-level luxury cars in the United States since 1938.

Ford is the second-largest U.S.-based automaker and the fifth-largest in the world based on 2010 vehicle sales. At the end of 2010, Ford was the fifth largest automaker in Europe. Ford is the eighth -

ranked overall American-based company in the 2010 Fortune 500 list, based on global revenues in

2009 of $118.3 billion. In 2008, Ford produced 5.532 million automobiles and employed about

213,000 employees at around 90 plants and facilities worldwide.Ford Motor CompanyType

Public company

Traded as NYSE: F

S&P 500 ComponentIndustry Automotive

Founded June 16, 1903

Founder(s) Henry Ford

Headquarters Dearborn, Michigan, U.S.

Area served Worldwide

Key people William C. Ford, Jr. (Executive Chairman) Alan R. Mulally

(President & CEO)Prod

cts Automobiles

Automotive parts

ServicesAutomotive finance

Vehicle leasing

Vehicle service

RevenueUS$136.26 billion (2011)[1]

Operating incomeUS$8.681 billion (2011)[1]

Net incomeUS$20.21 billion (2011)[1]

Total assetsUS$178.35 billion (2011)[1]

Total equityUS$15.07 billion (2011)[1]

Employees164,000 (2011)[1]

DivisionsFord

Lincoln

Subsidiaries

Automotive Components

Holdings Ford Credit Troller

Ford Australia Ford do Brasil Ford of Europe Ford of India

WebsiteFord.com

CHAPTER-II- VISION, MISSION AND OBJECTIVESVisionTo become the world's leading consumer company for automotive products and services.

MissionWe are a global family with a proud heritage passionately committed to providing personal mobility for people around the world.

We anticipate consumer need and deliver outstanding products and services that improve people's lives.

ValuesOur business is driven by our consumer focus, creativity, resourcefulness, and entrepreneurial spirit. We are an inspired, diverse team. We respect and value everyone's contribution. The health and

safety of our people are paramount.We are a leader in environmental responsibility. Our integrit y is never compromised and we make a positive contribution to society.

We constantly strive to improve in everything we do. Guided by these values, we provide superior returns to our shareholders.

Ford motors is the 3rd largest manufacturer of the cars in the world.

CHAPTER-III- HISTORYHISTORY

20th century

Fig 3.1 Henry FordHenry Ford's first attempt at a car company under his own name was the Henry Ford Company on November 3, 1901, which became the Cadillac Motor Company on August 22, 1902 after Ford left with the rights to his name. The Ford Motor Company was launched in a converted factory in 1903 with $28,000 in cash from twelve investors, most notably John and Horace Dodge (who would later found their owncar company). During its early years, the company produced just a few cars a day at its factory on Mack Avenue in Detroit, Michigan. Groups of two or three men worked on each car, assembling it from parts made mostly by supplier companies contracting for Ford. Within a decade the company would lead the world in the expansion and refinement of the assembly lineconcept; and Ford soon brought much of the part production in-house in a vertical integration that seemed a better path for the era.

Fig 3.2 Ford QuadricycleHenry Ford was 40 years old when he founded the Ford Motor Company, which would go on to become one of the world's largest and most profitable companies, as well as being one to survive the Great Depression. As one of the largest family-controlled companies in the world, the Ford Motor Company has been in continuous family control for over 100 years.

In 1908 Ford introduced the first engine with a removable cylinder head, in the Model T. In 1930, Ford introduced the the Model A, the first car with safety glass in the windshield. Ford launched the first low priced V8 engine powered car in 1932.

Ford offered the Lifeguard safety package from 1956, which included such innovations as a standard deep-dish steering wheel, optional front, and, for the first time in a car, rear seatbelts, and an optional padded dash. Ford introduced child-proof door locks into its products in 1957, and in the same year offered the first retractable hardtop on a mass-produced six-seater car. The Ford Mustang was introduced in 1964. In 1965 Ford introduced the seat belt reminder light.

With the 1980s, Ford introduced several highly successful vehicles around the world. In 1990 and

1994 respectively, Ford also acquired Jaguar Carsand Aston Martin. During the mid- to late 1990s, Ford continued to sell large numbers of vehicles, in a booming American economy with a soaring stock market and low fuel prices.

Fig 3.3 Ford Model T 1920With the dawn of the new century, legacy healthcare costs, higher fuel prices, and a faltering economy led to falling market shares, declining sales, and diminished profit margins. Most of the corporate profits came from financing consumer automobile loans through Ford Motor Credit Company.

21st centuryBy 2005, corporate bond rating agencies had downgraded the bonds of both Ford and GM to junk status, citing high U.S. health care costs for an aging workforce, soaring gasoline prices, eroding market share, and dependence on declining SUV sales for revenues. Profit margins decreased on large vehicles due to increased "incentives" (in the form of rebates or low interest financing) to offset declining demand. In the latter half of 2005, Chairman Bill Ford asked newly appointed Ford Americas Division President Mark Fields to develop a plan to return the company to profitability. Fields previewed the Plan, named The Way Forward, at the December 7, 2005 board meeting of the company and it was unveiled to the public on January 23, 2006. "The Way Forward" included resizing the company to match market realities, dropping some unprofitable and inefficient models, consolidating production lines, closing 14 factories and cutting 30,000 jobs.These cutbacks are consistent with Ford's roughly 25% decline in U.S. automotive market share since the mid -late

1990s.

In the face of demand for higher fuel efficiency and falling sales of minivans, Ford moved to introduce a range of new vehicles, including "Crossover SUVs" built on unibody car platforms, rather than more body-on-frame chassis. In developing the hybrid electric powertrain technologies for the Ford Escape Hybrid SUV, Ford licensed similar Toyota hybrid technologies to avoid patent infringements. Ford announced that it will team up with electricity supply company Southern California Edison (SCE) to examine the future of plug-in hybrids in terms of how home and vehicle energy systems will work with the electrical grid. Under the multi-million-dollar, multi-year project, Ford will convert a demonstration fleet of Ford Escape Hybrids into plug-in hybrids, and SCE will evaluate how the vehicles might interact with the home and the utility's electrical grid. Some of th e vehicles will be evaluated "in typical customer settings", according to Ford.

Bill Ford became President of the company in April 2006, with the retirement of Jim Padilla. Five months later, in September, he stepped down as President and CEO, naming Alan Mulally as his successor, and becoming Executive Chairman. In December 2006, the company raised its borrowing capacity to about $25 billion, placing substantially all corporate assets as collateral to secure the line of credit. Chairman Bill Ford has stated that "bankruptcy is not an option". Ford and the United Auto Workers, representing approximately 46,000 hourly workers in North America, agreed to a historic contract settlement in November 2007 giving the company a substantial break in terms of its

ongoing retiree health care costs and other economic issues. The agreement included the establishment of a company-funded, independently run Voluntary Employee Beneficiary Association (VEBA) trust to shift the burden of retiree health care from the company's books, thereby improving its balance sheet. This arrangement took effect on January 1, 2010. As a sign of its currently strong cash position, Ford contributed its entire current liability (estimated at approximately US$5.5 billion as of December 31, 2009) to the VEBA in cash, and also pre- paid US$500 million of its future liabilities to the fund. The agreement also gives hourly workers the job security they were seeking by having the company commit to substantial investments in most of its factories.

The automaker reported the largest annual loss in company history in 2006 of $12.7 billion, and estimated that it would not return to profitability until 2009. However, Ford surprised Wall Street in the second quarter of 2007 by posting a $750 million profit. Despite the gains, the company finished the year with a $2.7 billion loss, largely attributed to finance restructuring at Volvo.

On June 2, 2008, Ford sold its Jaguar and Land Rover operations to Tata Motors for $2.3 billion. During November 2008, Ford, together with Chrysler and General Motors, sought financial aid at Congressional hearings in Washington, D.C. in the face of worsening conditions caused by the automotive industry crisis. The three companies presented action plans for the sustainability of the industry. Ford opted not to seek government assistance. GM and Chrysler received assistance through the Executive Branch from the T.A.R.P.legislation funding provisions. On December 19, the cost of credit default swaps to insure the debt of Ford was 68 percent the sum insured for five years in addition to annual payments of 5 percent. That meant $6.8 million paid upfront to insure

$10 million in debt, in addition to payments of $500,000 per year. In January 2009, Ford reported a

$14.6 billion loss in the preceding year, a record for the company. The company retained sufficient liquidity to fund its operations. Through April 2009, Ford's strategy of debt for equity exchanges, erased $9.9 B in liabilities (28% of its total), in order to leverage its cash position. These actions yielded Ford a $2.7 billion profit in fiscal year 2009, the company's first full-year profit in four years.

CHAPTER-IV-SUCCESS PATHThe Ford Motor Company makes and sells automobiles. Founded in 1903, the company developed from Henry Ford and his vision to make cars available to everyone. Beginning in 1980, people outside of the Ford family held many of the powerful positions within the company, but on Oct. 30,

2001, Henry Fords great grandson, William Clay Ford Jr., was named Chief Executive Officer, ending the decades of power sharing.

Ford, number four in the Fortune 500, is a huge conglomerate and the top pick-up truck producer in the world. Only General Motors, its greatest competitor, makes more cars. Toyota and Daimler Chrysler are other top competitors. Ford has grown so large that it has bought out many competitors in the car industry including Volvo, Aston Martin, Jaguar, Lincoln, Land Rover, Mercury, and 33% of Mazda. Ford and its subsidiaries operate over 26,000 dealerships worldwide.

PRODUCT AND SERVICESAutomobilesFig 4.1 Ford Gt Fig 4.2 Ford FiestaAs of 2012 Ford Motor Company sells a broad range of automobiles under the Ford marque worldwide, and an additional range of luxury automobiles under the Lincoln marque in the United States. The company has sold vehicles under a number of other marques during its history.

The Mercury brand was introduced by Ford in 1939, continuing in production until 2011 when poor sales led to its discontinuation. In 1958, Ford introduced the Edsel brand, but poor sales led to its discontinuation in 1960. In 1985, the Merkurbrand was introduced in the United States to market products produced by Ford of Europe; it was discontinued in 1989.

In 2011, J D Power ranked Ford 23rd in initial quality, a drop from the fifth in 2010. Consumer Reports magazine also stopped to recommend several new Ford SUVs blaming the Sync entertainment and phone system used.

Fig 4.3 2010 Ford Flex Fig 4.4 Ford F 150 2007Ford acquired the British sports car maker Aston Martin in 1989, later selling it on March 12,

2007, retaining a small minority stake, and boughtVolvo Cars of Sweden in 1999, selling it to Zhejiang Geely Holding Group in 2010. In November 2008 it reduced its 33.4% controlling interest inMazda of Japan, to a 13.4% non-controlling interest. On November 18, 2010, Ford reduced their stake further to just 3%, citing the reduction of ownership would allow greater flexibility to pursue growth in emerging markets. Ford and Mazda remain strategic partners through joint ventures and exchanges of technological information. It shares an American joint venture plant in Flat Rock, Michigan called Auto Alliance with Mazda. Ford sold the United Kingdom- based Jaguar and Land Rover companies and brands to Tata Motors of India in March 2008.

MarqueCountry of originYears used/ownedMarkets

FordUnited States1903 to presentGlobal

LincolnUnited States1922 to presentNorth America, Middle East

MercuryUnited States1939 to 2011North America

EdselUnited States1958 to 1960North America

MerkurUnited States1985 to 1989North America

JaguarUnited Kingdom1989 to 2008Global

Aston MartinUnited Kingdom1989 to 2007Global

VolvoSweden1999 to 2010Global

Land RoverUnited Kingdom2000 to 2008Global

Trucks

Fig 4.5 1980 Ford truck Fig 4.6 Wilson's Truck Lines Ford

Fig 4.7 Coca Cola 50'sFord has produced trucks since 1908. Countries where Ford commercial vehicles are or were made include Argentina, Australia, Brazil, Canada (badged Mercury too), France, Germany, India, Netherlands, Philippines, Spain (badged Ebro too), Turkey, UK (badged also Fordson and Thames) and USA.

From the 1940s to late 1970s Ford's Ford F-Series were used as the base for light trucks for the

North American market.

Most of these ventures are now extinct. The European one that lasted longest was the lorries arm of Ford of Britain, which was eventually sold to Iveco group in 1986, and whose last significant models were theTranscontinental and the Cargo.

In the United States, Ford's heavy trucks division (Classes 7 and 8) was sold in 1997 to Freightliner Trucks, which rebranded the lineup as Sterling. Freightliner is in the process of discontinuing this line.

Line of heavy trucks made by Ford for the North American market:

Ford F-650 joint venture model from 2000 to present

Ford L9000 last model year 1999

Ford LNT9000 short nose tandem axle from 1970s to 1997

Ford LT9000 tandem axle with last model year 1997

Ford FT900 until 1998

Ford LT8000 last model year 1998

Ford L7000 last model year 1996

Ford continues to manufacture medium duty trucks under the F-650 and F-750 badges. In 2001, the company entered into a joint venture with Navistar International to produce medium duty commercial trucks. The first new model from the new corporation, known as Blue Diamond Truck Company LLC,was the 2006 model year LCF, the first Ford branded cab-over-engine design in the United States since Freightliner's acquisition of the Cargo in the mid-1990s.The LCF was discontinued in 2009 and Ford's 2011 medium-duty commercial offerings are limited to the two F- Series.

In 1999 the end of the F800 meant Ford was not producing in any F-series heavy truck chassis.

In Europe, Ford manufactures the Ford Transit jumbo van which is classed as a Large Goods Vehicle and has a payload of up to 2,265 kg, there are options of a panel van, pickup or chassis cab. The Ford Transit is also available as a light van called the Ford Transit Connect and the Ford Ranger pickup is available.

Buses

Fig 4.8 Ford B700 BusFord manufactured complete buses in the company's early history, but today the role of the company has changed to that of a second stage manufacturer. In North America, the E-Series is still used as a chassis for small school buses and the F-650 is used in commercial bus markets. In the 1980s and

1990s, the medium-duty B700 was a popular chassis used by school bus body manufacturers

including Thomas Built,Ward and Blue Bird, but Ford lost its market share due to industry contraction and agreements between body manufacturers. Older bus models included:

Prior to 1939, For buses were based on truck bodies:

Model B 1930s

Model T 1920s

F-105 school bus

During World War II Ford manufactured Ford Transit bus, a series of small transit buses with bodies built by second party:

09-B/19-B City transit bus 19391941

19-B/29-B City transit bus 19411942

49-B/79-B City transit bus 19441947

69-B City transit bus 19461947

29-B City transit bus 19461947

72-T transit bus 19441945

After 1946 the Transit City bus was sold as Universal Bus with the roof changed from fabric/wood to all metal:

79-B Universal transit bus 19461947

Succeeding the Ford Transit bus was the Ford 8M buses:

8MB transit bus with Wayne Works 1948?

Following World War II and from 1950s onwards Ford lost out to General Motors. This led to the end of transit buses for Ford in North America.

B500 or B-series 1950-1990s based on Ford F-series truck chassis used by school bus body manufacturers

In Europe, Ford manufactures the Ford Transit Minibus which is classed in Europe as a Passenger Carrying Vehicle and there are options of 12, 15 or 17 seaters. In the past European models included:

EM

N-138

D series buses (Australia)

Tractors

Fig 4.9 Ford N Series TractorThe "Henry Ford and Son Company" began making Fordson tractors in Henry's hometown of Springwells (later part of Dearborn, Michigan from 1907 to 1928, from 1919 to 1932, at Cork, Ireland and 19331964 atDagenham, England, later transferred to Basildon. They were also produced in Leningrad beginning in 1924.

In 1986, Ford expanded its tractor business when it purchased the Sperry-New Holland skid-steer loader and hay baler, hay tools and implement company from Sperry Corporation and formed Ford- New Holland which bought out Versatile tractors in 1988. This company was bought by Fiat in 1993 and the name changed from Ford New Holland to New Holland. New Holland is now part of CNH Global.

Financial servicesFord offers automotive finance through Ford Motor Credit Company.

Police carsFig 4.10 NYPD Police Car Fig 4.11 Orange County Police Department k9Unit Car

Fig 4.12 LAPD Police CarFord aloso manufactures various police cars for various police departments.

Automotive componentsFord's FoMoCo parts division sells aftermarket parts under the Motorcraft brand name. It has spun off its parts division under the name Visteon.

Motorsport

Fig 4.13 Ford EngineAlong with Shelby and Chevrolet, Ford is one of only three American constructors to win titles on the international scene at the FIA World Championships. As a constructor, Ford won the World Sportscar Championship three times in 1966, 1967 and 1968, and the World Rally Championship three times in 1979, 2006 and 2007.

Stock car racingFig 4.14 Nascar Ford FusionFord is one of four manufacturers in NASCAR's three major series: Sprint Cup Series, Nationwide Series, and Camping World Truck Series. Major teams include Roush Fenway Racing and Yates Racing and Richard Petty Motorsports. Ford is represented by the mid-size Fusion in the Sprint Cup, the Mustang in the Nationwide Series, and by the F-150 in the Camping World Truck Series. Some of the most successful NASCAR Fords were the aerodynamic fastback Ford Torino, Ford Torino Talladega, Mercury Cyclone Spoiler II, and Mercury Montegos, and the aero-era Ford Thunderbirds. The Ford nameplate has won eight manufacturer's championships in Sprint Cup, while Mercury has won one. The Ford Fusion is also used in the ARCA Remax Series.

Formula OneFord was heavily involved in Formula One for many years, and supplied engines to a large number of teams from 1967 until 2004. These engines were designed and manufactured by Cosworth, the racing division that was owned by Ford from 1998 to 2004. Ford-badged engines won 176 Grands Prix between 1967 and 2003 for teams such as Team Lotus and McLaren. Ford entered Formula One as a constructor in 2000 under the Jaguar Racingname, after buying the Stewart Grand Prix team which had been its primary 'works' team in the series since 1997. Jaguar achieved little success in Formula One, and after a turbulent five seasons, Ford withdrew from the category after the 2004 season, selling both Jaguar Racing (which became Red Bull Racing) and Cosworth (to Gerald Forsythe and Kevin Kalkhoven).

Rally

Fig 4.15 Ford Focus Rs Wrc 09Ford has a long history in rallying and has been active in the World Rally Championship since the beginning of the world championship, the 1973 season. Ford took the 1979 manufacturers' title with Hannu Mikkola, Bjrn Waldegrd and Ari Vatanen driving the Ford Escort RS1800. In the Group Bera, Ford achieved success with Ford RS200. Since the 1999 season, Ford has used various versions of the Ford Focus WRC to much success. In the2006 season, BP-Ford World Rally Team secured Ford its second manufacturers' title, with the Focus RS WRC 06 built by M-Sport and driven by "Flying Finns" Marcus Grnholm and Mikko Hirvonen. Continuing with Grnholm and Hirvonen, Ford successfully defended the manufacturers' world championship in the 2007 season. Ford is the only manufacturer to score in the points for 92 consecutive races; since the 2002 season opener Monte Carlo Rally.

Sports carsFord sports cars have been visible in the world of sports car racing since 1964. Most notably the GT40 won the 24 Hours of Le Mans four times in the 1960s and is the only American car to ever

win overall at this prestigious event. Ford also won the 1968 International Championship for Makes with the GT40, which still stands today as one of the all-time greatest racing cars. Swiss teamMatech GT Racing, in collaboration with Ford Racing, opened a new chapter with the Ford GT, winning the Teams title in the 2008 FIA GT3 European Championship.

Fig 4.16 Ford Mustang GtThe Ford Mustang has arguably been Ford's most successful sports car. Jerry Titus won the 1965

SCCA Pro B National Championship with a Mustang and the model went on to earn Ford the SCCA Trans-Am Championship title in both 1966 and 1967. Ford won the Trans-Am Championship again in 1970 with Parnelli Jones and George Folmer driving Boss 302 Mustangs for Bud Moore Engineering. Ford took the 1985 and 1986 IMSA GTO Championship with Mustangs driven by John Jones and Scott Pruett before returning to Trans-Am glory with a championship in 1989 with Dorsey Schroeder. Ford dominated Trans-Am in the 1990s with Tommy Kendal winning championships in

1993, 1995, 1996, and 1997 with Paul Gentiloziadding yet another title in 1999. In 2005 the Ford Mustang FR500C took the championship in the Rolex Koni Challenge Series in its first year on the circuit. In 2007 Ford added a victory in the GT4 European Championship. 2008 was the first year of the Mustang Challenge for the Miller Cup, a series which pits a full field of identical factory built Ford Mustang race cars against each other. Also in 2008, Ford won the manufacturers championship in the Koni Challenge Series and HyperSport drivers Joe Foster and Steve Maxwell won the drivers

title in a Mustang GT.Environment initiativesFord announced in late 2008 July that it will bring six of its more fuel-efficient European models to the U.S.

Compressed natural gasThe alternative fossil fuel vehicles, such as some versions of the Crown Victoria especially in fleet and taxi service, operate on compressed natural gasor CNG. Some CNG vehicles have dual fuel tanks one for gasoline, the other for CNG the same engine can operate on either fuel via a selector switch.

Flexible fuel vehiclesFig 4.17 Ford Focus FlexifuelThe Ford Focus Flexifuel was the firstE85 flexible fuel vehicle commercially available in the

European market.

Flexible fuel vehicles are designed to operate smoothly using a wide range of available ethanol fuel mixturesfrom pure gasoline, to bioethanol-gasoline blends such as E85 (85% ethanol and

15% gasoline) or E100 (neat hydrous ethanol) in Brazil. Part of the challenge of successful marketing alternative and flexible fuel vehicles in the U.S., is the general lack of establishment of sufficient fueling stations, which would be essential for these vehicles to be attractive to a wide range of consumers. Significant efforts to ramp up production and distribution of E85 fuels are underway and expanding.

Ford is also planning to produce 250,000 E85-capable vehicles a year in the US, adding to some

1.6 million already sold in the last 10 years.

Current Ford E85 Flexible Fuel Vehicles sold in North America and Europe are the: Ford F-

150, Ford Crown Victoria, Ford Focus, Ford C-MAX, Ford Mondeo, Ford S-MAX, Ford Galaxy, Ford Taurus, Ford Ranger, Ford Explorer, Ford Expedition and EL/Max, Mercury Grand Marquis, Lincoln Town Carand Ford Fusion.

Current Ford E100 Flex sold in the Brazilian market are the Courier, Ford EcoSport, Ford

Fiesta, Ford Focus and Ford Ka.

Electric vehiclesFord expects electric vehicles will represent a "major portion" of its lineup a decade from now as the automaker breaks away from a recent reliance on pickup trucks and SUVs. The stakes are high because Ford's stepped-up investment is coming at a time when the U.S. government is demanding steep increases in fuel economy and has put money forward to help automakers adopt new fuel - saving technologies.

Ford will partner with Coulomb Technologies to provide nearly 5,000 free in-home charging stations for some of the automaker's first electric vehicle customers, under the Ford Blue Oval Charge Point Program.

Hybrid electric vehiclesFig 4.18 Ford Escape plug-in hybridIn 2004 both Ford and Toyota agreed on a patent sharing accord which granted Ford access to certain hybrid technology patented by Toyota, in exchange Ford licensed Toyota some of their own patents.

Ford did improve fuel efficiency during 2005, with the introduction of the Hybrid-Electric Escape. With this vehicle, Ford was third to the automotive market with a hybrid electric vehicle and the first hybrid electric SUV to market. This was also the first hybrid electric vehicle with a flexible fuelcapability to run on E85. The Escape's platform mate Mercury Mariner was also available with the hybrid-electric system in the 2006 model yeara full year ahead of schedule. The similar Mazda Tribute will also receive a hybrid-electric powertrain option, along with many other vehicles in the Ford vehicle line.

In 2005 Ford announced its goal to make 250,000 hybrids a year by 2010, but by mid -2006 announced that it would not meet that goal, due to excessively high costs and the lack of sufficient supplies of the hybrid-electric batteries and drivetrain system components. Instead, Ford has committed to accelerating development of next-generation hybrid-electric power plants in Britain, in collaboration with Volvo. This engineering study is expected to yield more than 100 new hybrid - electric vehicle models and derivatives. There are also plans for hybrid versions of the Ford Edge and Lincoln MKX.

Ford announced on 2007-07-09 that it will team up with Southern California Edison (SCE) to examine the future of plug-in hybrids in terms of how home and vehicle energy systems will work with the electrical grid. Under the multi-million-dollar, multi-year project, Ford will convert a demonstration fleet ofFord Escape Hybrids into plug-in hybrids, and SCE will evaluate how the vehicles might interact with the home and the utility's electrical grid. Some of the vehicles will be evaluated "in typical customer settings", according to Ford.

On June 12, 2008 USDOE expanded its own fleet of alternative fuel and advanced technology vehicles with the addition of a Ford Escape Plug-In Hybrid Flex-Fuel Vehicle. The vehicle is equipped with a 10-kilowatt (13 hp) lithium-ion battery supplied by Johnson Controls-Saft that stores enough electric energy to drive up to 30 miles (48 km) at speeds of up to 40 mph (64 km/h).

In March 2009 Ford launched to the U.S. market the Ford Fusion Hybrid and the Mercury Milan

Hybrid, both as 2010 models.

Ford is going to introduce a plug-in hybrid to challenge the Chevy Volt by 2012 and more charge- maintaining hybrids (traditional gas-electric hybrids), beginning with one in 2011.

Current and planned Ford hybrid electric vehicles include the Ford Escape Hybrid (2004 present), Mercury Mariner (2006present), Ford Fusion Hybrid/Mercury Milan (2009present) and Ford Edge/Lincoln MKX (2009/10present)

Market share figures for 2008 to '11 are for the full 12 months.Carmaker2011201020092008

GM19.4%18.8%19.7%22.1%

FORD16.5%16.4%15.3%14.2%

TOYOTA12.6%15.2%17.0%16.7%

CHRYSLER10.5%9.2%8.8%10.8%

HONDA9.7%10.6%11.1%10.8%

Source: automakers

Top 10 by manufactor total europen market1. VAG 23.7% (Audi/VW/Skoda/Seat)

2. PSA Group 11.7% (Peugeot/Citroen)

3. Renault Group 10.7% (Renault/Dacia)

4. GM Group 8.2% (Opel/Vauxhall/Chevrolet)

5. Ford 7.7%6. Fiat Group 6.3% (Fiat/Ferrari/Alfa

Romeo/Maserati/Lancia/Chrysler/Jeep etc)7. BMW Group 6.2% (BMW/Mini)

8. Daimler Group 5.2% (Mercedes/smart)

9. Toyota Group 4.2% (Toyota/Lexus)

10. Nissan 3.3%

Top10 by brand1. VW 12.6%

2. Renault 8.3%

3. Ford 7.7%4. Opel/Vauxhall 6.9%

5. Peugeot 6.1%

6. Citroen 5.6%

7. Audi 5.4%

8. BMW 4.9%

9. Mercedes 4.6%

10. Fiat 4.5%

11. Toyota 3.9%

12. Skoda 3.6%

13. Nissan 3.3%

Strengths And OpportunitiesWithin the past year, Fords reputation has been plagued by extensive recalls. When you have three, four or five recalls, it creates doubts about the vehicles, said automotive analyst Greg Salch ow. Beyond this main internal issue, Ford has also endured external problems like the falling economy and the Sept. 11 attacks, forcing them to make internal changes to make up for slumping sales. Here we have provided a list of internal strengths and weaknesses, organized by public or major issue, that focus on what the company has done internally, either as a result of external issues or as common

procedure.Community Relations:

StrengthsFord has made numerous efforts to target the surrounding community. A breast cancer awareness campaign was created in which celebrities are enlisted to tell how breast cancer has affected them. The company takes strides to protect the environment demonstrated by the development of an electric vehicle and efforts to increase fuel efficiency. Since the Sept. 11 attacks on America, Ford and its employees have made extensive donations and held fundraisers and events by Ford in response.

Employee Relations:Ford provides incentives for employees to work at high quality levels. For example, the Thumbie award is given to employees who demonstrate a high personal commitment to their customers and community. Higher wages are also characteristic of the company. Hourly workers typically have wages from $19-$26 an hour, while skilled trade workers make $21-$30 an hour. For the last 20 years, Ford has issued no involuntary layoffs or dismissals of salaried employees, although this year may be an exception. The company also created a Family Service and Learning Center program for Ford workers, family members and retirees, offering health classes, after-school tutoring and trips for seniors.

Investor Relations:Ford maintains a high level of communication with its investors and potential investors. The company accurately and honestly reports earnings and losses in ways easily accessible by the public via company Web site, mailings, and print materials by request.

Opportunities:Ford and the entire auto industry are currently challenged with the perfect storm.The auto industry is being hit by a weak US and global economy, rising fuel prices,and social and political environmental concerns and issues. In order to overcomethese potential threat, Ford should consider mass producing a range of alternativefuelled vehicles (diesel, fuel cell, electric, and hybrid). As emerging markets developthey will increase their use of oil products creating even greater demand and increasedprices. Couple this issue with social and political concerns regarding global warming,and the ever increasing state regulations regarding emissions, will create a potentialhuge customer demand for these alternative vehicles. Potential opportunities identified for Ford are related to the future demand of the alternative vehicles and increased global market share potential from emerging markets. But first Ford needs to turn current internal weaknesses into strengths to achieve the external opportunities. Ford s internal weaknesses are the large legacycosts in equipment, facilities, and retirees, that all need to be addressed to compete with relatively speaking new companies like Toyota, and Honda. Due to the sesignificant legacy costs, Ford has increased the cost per vehicle to incorporate the additional cost into the price of their vehicles. Another weakness for Ford is that

because they are so large it takes much longer to roll out new vehicles, and in addition Ford has too many similar vehicles that need to be reduced. For example, Ford hassimilar products in Mercury, and Ford. Ford needs to reduce more structural and operational costs as they have started three years ago by eliminating product redundancy, labour cost, removing vehicle platforms, and making each brand uniquein its own way. Although weak in these areas, Ford is positioned to take advantage of the identifiedstrategic imperatives. Ford already has a global presence and is diligently working toexpand in the emerging markets. The European, Latin-American, India, and Asianmarkets are more receptive to the smaller vehicles that Ford will need to begin toproduce. By developing and producing alternative vehicles, Ford can begin toeliminate brands and platforms that are not selling. Ford can use the cost savings to further invest in the development and production of alternative vehicles. However, Ford cantake advantage of opportunities that occur from the result of trends and forces that will reshape Ford. Three industry trends and forces that are most critical to Fordcurrently are economic, ecological, and competitive. The economic downturn thenbegins to feed on fear from the consumers, and self-fulfilling prophecies. Companies continue to downsize due to lack of production, and as people lose their jobs they lose their ability to purchase goods. The change to alternative vehicles will take a skilled workforce that should provide jobs, along with job creation necessary to build therequired infrastructure for the alternative vehicles. Ford has an opportunity to gain new customers by providing the new Ford foreign workers with incentives to buy Ford, as Henry Ford already did with the Ford T model. A company can significantly damageits public image that greatly impact sales by doing something harmful to the environment. For the auto industry this means developing alternative fuel vehicles,like fuel cell, electric, and hybrid vehicles. Ford needs to capture the consumer momentum for alternative vehicles, and the political pressures regarding emissions to produce and market alternative vehicles.

CHAPTER-V-ROADBLOCKS AND FEASIBLE SOLUTIONSPoor financial results

RoadblocksRegistered a loss of $14.6bn in 2006, theworst annual result in105 years.

High volatilityof raw materials increased costs of innovations.

Data lossLow protection against data loss.

Employee Relations:Ford is using a voluntary separation program to lay off employees, and plans amount to the elimination of about 10 percent of Fords salaried workforce in North America (4,000-5,000 workers). According to workers at Fords world headquarters in Dearborn, Michigan, no one knew anything about the job cuts until an announcement was made on the radio, although people had been expecting layoffs.

A plan to cut all overtime, excluding plants mandated by union contracts or plants producing a highly popular product, has also been enforced. At the end of Sept 2001, three Ford assembly plants were working scheduled overtime. Last year, and into spring 2001, ten plants were working scheduled overtime.

Customer Relations:Ford has recalled almost two million vehicles in 2001, with the Firestone tire recalls alone costing the company more than $3 billion. Because such safety precautions are necessary, customers currently have little confidence in Ford products. The company notifies owners of recalls via first- class mail, but this will not protect customers with unsafe vehicles from harm.

Listed in the annual report are a number of ways Ford targets their customers. The company provides a Customer Insight Center to train employees to respond to the needs of customers, interact with customers at race events, and talk with customers face-to-face at auto shows and at dealerships. Ford does nothing else to show their customers how important they really are.

ChallengesWith the knowledge of the safety issues surrounding Firestone tires on Ford Explorers, consumers have been scared to purchase Ford vehicles. Customers have become critical of Fords aging products and instead are buying cars and trucks made by foreign competitors, as well as those of General Motors. The recession and the war discourage people from investing in the luxury of new cars, thus Fords appeal has lessened significantly, threatening the entire company.

Current layoffs due to lower production levels will continue to raise concerns among employees about their job security. Layoffs are also eminent because of the loss of revenue due to Firestone tire recalls and recalls on millions of other vehicles, lawsuits surrounding the cases, and the recessio n.

Like most companies facing a challenging market, Ford will have a tough time pleasing investors. Also, Fords publics currently question the overall reputation of the company, especially concerning safety issues, which can devalue Ford stock. The increase of global market presence from other automobile companies will cause Ford to lose market share in the automobile industry.

Feasible SolutionsFord is successful when it sells cars. Therefore, appealing to our customers and potential customers is the most important factor in reaching the short-term goal of selling more cars. As a result, investors will see a greater returnwhich makes them happy. Employees will feel more secure in their jobs, because Fords productivity will increase.

Strategy: To create the Changing the Face of Ford campaign to replace Fords current damaged reputation with a new, positive image. Identify William Clay Ford as the new face emphasizing change within the company while maintaining the companys founding ideals.

Tactics:

Ford will establish a joint team with members of Firestone and an independent research firm to reevaluate the manufacturing process to ensure that only safe vehicles leave the plants.

Conduct surveys and focus groups with several thousand Ford owners to determine customer satisfaction and concerns.

Promote hotlines and online help services to answer questions regarding recalls and changes within the company.

When the research is complete, hold a nationally televised forum in Detroit. This forum, facilitated by the new CEO, will unveil the research and answer any questions or concerns.

Create two series of commercials, one featuring the new CEO in association with the Changing the Face of Ford campaign, and the other emphasizing the patriotic spiri t of the country, promoting cars that are red, white, and blue.

Renovate the Ford.com Web site to make it user-friendly, enticing and direct. Include all components of the Changing the Face of Ford campaign, as well as a Ford Yearbook, introducing the changes in high-level management.

Institute a policy that features a free car wash and a free American flag to any Ford owner who returns to their dealership for a check up.

Assign Ford officials to contact/visit the victims and their families to accept responsibility for the faulty vehicles, and offer condolences and compensation.

CHAPTER-VI-FUTURE PROJECTIONSFord Motors Future PlansThe Way Forward? Factories: Seven plants, including Wixom assembly (Lincoln LS, ex -T-Bird), St. Louis

(Explorer/Mountaineer/Aviator), Atlanta (Taurus, Sable), and seven additional facilities.

Jobs: 25,000 to 30,000 plant workers by 2012; 4000 white-collar workers; 12 percent of company officers.

Costs: Material cost reductions of at least $6 billion.

Prices: "We'll bring sticker prices more in line with actual transaction prices and cap 'cash on the hood' rebates as we introduce new cars and trucks into the marketplace."

Ford Motor Company President and CEO Alan Mulally revealed the new Ford Figo, the anticipated new car to be produced in India and targeted at the India and export market. Ford said that M ulallys visit for the reveal underscores the strategic importance of India in Fords future plans.

The new Ford Figo will be manufactured at Fords expanded integrated manufacturing facility near Chennai, which is undergoing a $500 million transformation to become a regional center of excellence for Ford small car production. (Earlier post.) The investment is doubling production capacity to 200,000 units per year.

Ford Figo is designed and engineered to compete in Indias small car segment, which accounts for more than 70% of the new vehicle market. It leverages Fords small-car platform architecture, sharing underlying technology with the Ford Fiesta.

Ford said that is will provide further details about the vehicle closer to its production launch.

China expansion. Separately, Ford announced that its joint venture with Changan in China Changan Ford Mazda Automobile (CFMA)is building a new, manufacturing facility in Chongqing, scheduled for completion in 2012.

The investment, valued at $490 million (RMB 3.34 billion), represents a significant step in Fords continuing expansion strategy in the Asia Pacific and Africa region. The new plant initially will be

capable of producing 150,000 units a year, boosting total annual production capacity at CFMA

operations to 600,000 units by 2012.

The highly flexible 1-million-square-meter manufacturing facility begins production of Fords next- generation Ford Focus in 2012 and will be capable of producing a diversified range of products in the future.

The new plantFords second in Chongqing and third in China under its CFMA joint venturewill be located in Chongqings New North Zone industrial complex.The next-generation Focus, scheduled to debut at the North American International Auto Show in Detroit, will be built on the companys new global C-car platform. The new platform will be the basis for vehicles sold in all regions with total global sales expected to exceed 2 million units annually by 2012.The new global C-car platform ultimately will underpin up to 10 unique models, fulfilling the global demands for a variety of C-segment vehicles. The C-segment is currently the largest global segment. By 2013, C-segment vehicles are projected to account for nearly 28% of global sales.In addition to the car manufacturing plant already operational in Chongqingwhere the Focus, Mondeo and S-MAX are builtthe Ford-Changan the joint venture has a manufacturing facility in Nanjing, China, where the new, global Ford Fiesta is built. Supporting these assembly facilities is the Changan Ford Mazda Engine Company (CFME) joint venture in Nanjing&mash;one of the largest engine manufacturing facilities in China with an annual production capacity of 350,000 units. Ford plans to introduce its EcoBoost engine technology in China next year, as well as other fuel - efficient technologies, such as our PowerShift transmission. Fords EcoBoost engines combine turbocharging and direct-injection technology to deliver fuel consumption and CO2 emissions reduction of up to 20% versus conventional, larger-displacement gasoline engines with similar power output. By 2013, Ford will be producing 1.3 million EcoBoost engines annually on a global basis for application across a wide array of vehicles from small cars to light trucks.The companys new PowerShift transmission technology will deliver the fuel efficiency of a manual gearbox with the convenience and ease of a premium automatic transmission, making it one of the key technologies for Fords global small car platforms. Ford has committed that nearly all of its transmissions will be six-speed gearboxes by 2013.Fords other partner in China, Jiangling Motors Corporation in Nanchang, produces commercial vehicles, including the Ford Transit, one of the best sellers in Chinas high -end light commercial van segmentCHAPTER-VII-CONCLUSIONS OF THE STUDYFord Motor Company is indeed a great company because it not only offered an alternative way of transportation, it offered jobs of equal opportunity in the early 1900's up until now (Ford Motor Company 215-221). Ford Motor Company helped the economy and a lot of families; it also is a very historic corporation. My personal definition of historic corporation is consistent success for a long period of time. From 1919 to 1999 Ford has earned $162.55 billion dollars in sales, has encountered over 364,550 employees and has earned stock exchanges in New York, Boston, the Pacific Midwest, Toronto, Montreal and London (Ford Motor Company 215-221). No one could have made the company more successful than quite possibly the greatest businessman of all time; Henry Ford.

Henry Ford was indeed a great businessman. He envisioned himself being one of the great businessmen of all time, or rather the father 20th Century American Industry . He was curious about engineering and became one himself. He lived through propaganda and refused to ever consider himself wrong. He did have his mistakes, and people are very critical about his feeling towards Jewish people. Still, in the world of business, he simply made Ford one of the most popular names known worldwide. He worked in a time period where one CEO could easily dominate the industry.

American history is something that we take pride in and that Henry Ford created something that is written in millions of history books.

I simply want the people to take this information and think about what Mr. Ford gave us and how he did it. It is unrealistic to become what he has today; he came from a time where a CEO could dominate the industry. Ford knew that business had to be local, he pushed the government for roads, he helped create a middle class, and he even made civilians flock to Detroit with a dream that one day they could work for Henry Ford. Now, even the smartest people in the world could not accomplish what he did. I think I have a great topic and I really hope that people walk out of the presentation with a lot of new interesting information

CHAPTER-VIII-PROFESSION OUTCOMEIn my opinion ford motors is a very good company, famous all over the world .It is the world 3 rdlargest company. In 2010, Ford earned a net profit of $6.6 billion and reduced its debt from

$33.6 billion to $14.5 billion lowering interest payments by $1 billion following its 2009 net profit of $2.7 billion. In the U.S., the F-Series was the best-selling vehicle for 2010. Ford sold 528,349 F- Series trucks during the year, a 27.7% increase over 2009, out of a total sales of 1.9 million vehicles, or every one out of four vehicles Ford sold. Trucks sales accounts for a big slice of Ford's profits, according to USA Today. Ford's realignment also included the sale of its wholly owned subsidiary, Hertz Rent-a-Car to a private equity group for $15 billion in cash and debt acquisition.A

5050 joint venture with Mahindra & Mahindra of India, called Mahindra Ford India, Limited (MIFL), ended with Ford buying out Mahindra's remaining stake in the company in 2005. Ford had previously upped its stake to 72% in 1998.

Ford has manufacturing operations worldwide, including in the United States, Canada, Mexico, China, the United Kingdom, Germany, Turkey, Brazil, Argentina, Australia and South Africa. Ford also has a cooperative agreement with Russian automaker GAZ.

BIBLIOGRAPHYWebsites1. www.ford.com/2. www.manonamission.blogspot.com/2005/04/fords-f-mission-statement.html3. www.india.ford.com/4. www.motortrend.com/features/auto_news/2011/1202_u_s_markets_share_for_the_top_five_automakers/5. www.best-selling-cars.com/europe/2011-full-year-best-selling-car-manufacturers-and-brands-in-europe/Books1. Ford motors annual book.

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