Ford Motor Company: Staying "Ford Tough"

Main

Incorporation, awards and announcement of major plans

Incoporation

06/16/1903

Ford Motor Company (Ford Motor) is incorporated in Detroit, USA with 11 business associates and $28,000 in capital

Ford Motor Enters Europe

1967

Establishment of Ford Motor in Europe

Produce Annual Sustainability Report Since

1999

Produce annual Sustainability Report since 1999 to offer the public a comprehensive view of Ford's progress on environmental, economic and social issues

Introduce Driving Skills for Life Since

2003

Establish Driving Skills for Life, along with the Governors Highway Safety Association and a panel of safety experts

First to Form Council Dedicated on Sustainability

2007

Appointed the automotive industry's first senior executive dedicated to sustainability and formed the Transformation Advisory Council, a group of "nationally known thought leaders from outside Ford" to provide guidance about future technologies and global trends

Reached Agreement with UAW

2007

Reached four-year collective bargaining agreement with United Auto Workers Union on provisions for reduced retiree healthcare costs, more competitive wages and benefits and improved operational flexibility

Implementation of ONE Ford

2007

Mulally developed the ONE Ford business transformation plan designed to create a leaner, more efficient global enterprise and return Ford to profitability. The plan focuses on four priorities and have remained virtually unchanged

Change in Organisational Structure

2007

Leadership team was reorganized, positions were streamlined and some people were promoted to head unified global operations

Introduce Swap Your Ride Campaign Since

2010

Organized Swap Your Ride campaign annually since 2010 and its advertisements were 48% more memorable than average sales events advertisements

Awards and Outperformance

06/2011

Newer retail vehicles earned above-segment-averages fuel efficiency ratings and the F-150 is the only large pickup that received both Initial Quality and APEAL awards. Ford outperformed GM, Chrysler, Toyota & Honda, and Lincoln scored highest among domestic luxury brand

Announce Major Global Expansion Plan

06/2011

Announced plans to increase worldwide sales 50% by 2015. Plans include launching 8 new vehicles by 2015, tripling its number of dealerships by 2016, discussing with Gujaret state government to establish a second plant, spending $1.6 billion in China to build four factories and triple product lineup etc.

Talks with UAW

07/29/2011

UAW president, Bob King wants automakers to share their newfound profits with workers by trading wage increases for profit sharing programs. King wants a seat on Ford's board of directors and talks have ensued

Leadership & Corporate Governance

Change in either CEO, President, Board of Director or Board Committee Chairpersons

Henry Ford

06/16/1903

Henry Ford incorporated Ford Motor Company

Edsel Ford Joined Company

1915

Edsel Ford joined the company, assuming responsibility for the business side of the company

Became Family-owned Business

1919

Purchased all outstanding shares for $105,820,894 and made Ford Motor a family-owned business

Edsel As President

1919

Edsel became president of the company

Death of Edsel

1943

Edsel passed away

Return of Henry

1944

Henry returned from retirement to lead the company

Henry Ford II As President and CEO

1945

Henry resigned at age 82 and Henry Ford II succeeded as the president and CEO of company

Henry II Stepped Down As President

1960

Henry II stepped down as president

Henry II As Chairman of Board of Directors

1960

Henry II took up as the chairman of the board of directors

Henry II Stepped Down As CEO

1979

Henry II stepped down as CEO

Henry II As Chairman of Finance Committee

1980

Henry II served as chairman of the finance committee

Death of Henry II

1987

Henry II passed away

Bill Ford As Chairman of Board of Directors

12/31/1998

Bill Ford became chairman of the Board of Directors

Jacques A. Nasser As CEO

1999

Jacques A. Nasser, with 31 years of experience with Ford Motor, took over as CEO

Bill As CEO

07/2001

Bill Ford took over as CEO

Nasser Resigned

07/2001

Jacques A. Nasser resigned from company

Alan Mulally As President & CEO

09/2006

Alan R. Mulally took over as President and CEO

Bill Stepped Down As President & CEO

09/2006

Bill stepped down as President and CEO

Financial and Market Position Figures

Key profits and losses and position in the automotive industry in terms of market share

All-time High Production

1914

Produced 308,162 cars, more than all other US automakers combined

Decline in Market Share

1945

Ford’s US market share slipped to number three, behind General Motors (GM) and Chrysler

Recapture #2 Position

1950

Ford Motor recaptured number two position

Sales Decline While Japanese Import Sales Increase

1974

Sales of larger, heavier and less-fuel efficient vehicles decline while sales of Japanese imports such as Toyota, Honda and Nissan, which met the new fuel efficiency standards, increased

Largest Market Share In US Automotive Industry

1988

Achieved 22% market share in the US automotive industry, the largest in ten years

$1.6 billion loss from North American Operations

2005

Reported $2 billion earnings was in fact a 42% decline from its 2004 profit of #3.5 billion, with international sales in Europe, Asia and other areas offset by $1.6 billion loss in North American operations

Loss of $12.6 billion in 2006

2006

Posted a loss of $12.6 billion in 2006

Raised $23.6 Billion Collateral Loans

12/2006

Raised $23.6 billion in loans by using many of its North American assets as collateral, including the Ford logo

Fell to #3 Position

2007

Fell to #3 position in the US vehicle market for the first time since the Great Depression, behind GM and Toyota

$14.7 Billion Loss - Highest in Its History

2008

$14.7 billion loss, highest in its 105-year history

Profit of $2.7 Billion - First in 4 Years

2009

Profit of $2.7 billion, first in four years

Recapture #2 Position in US

02/2010

Passed Toyota to regain the #2 position in terms of vehicles sold in the US, with GM being the first. Every region for Ford was profitable, especially North America

Ranked #8 for US Largest Companies

06/2010

Ranked #8 on Fortune Magazine's Fortune 500 list of America's largest companies

Captured #1 Position in Canada

12/2010

For the first time in more than 50 years, Ford outsold GM (in overall) and at the end of 2010, Ford was the best-selling automaker in Canada

Sharp Reduction in Debt

03/2011

Have reduced its debt by $17.5 billion

Lowest Share Price In 2011

06/2011

Following 2 weeks after the global expansion plan announcement, share price fell 23% since January 1 to $12.65, the lowest level in 2011

Lower Outlook for US Sales

06/2011

Reduced outlook for US sales in 2011 with a lower second quarter compared to the same period in 2010

Ranked #10 for US Largest Companies

06/2011

Ranked #10 on Fortune Magazine's Fortune 500 list of America's largest companies

Value Chain and Resources

Change in value chain primary and supporting activities, and resources, such as new physical facility, product launches, large-scale recruitment or retrenchment, recruitment of key personnel and wage changes

Launch of First Product

06/16/1903

Debuted Model A, amid offerings from 87 other car manufacturing companies in the USA.

Launch of Second Product

12/08/1908

First Model T

First Moving Conveyor Belt

1914

First moving conveyor belt introduced at Ford's Highland Park plant

Increase Wages

1914

More than doubled the existing minimum wage per day to $5

Increase Production & Lower Production Price

1916

Increased production and lower production price from 20,277 cars at $780 each in 1910 to 585,388 cars at $360 each

New Manufacturing Facility

1917

Construction of the Rouge manufacturing plant

Debuted Mercury Brand

1938

Entered the medium price market by debuting the Mercury brand

Key Recruitment - The "Whiz Kids"

1945

Henry II hired the “Whiz Kids” to create a sophisticated management system including accounting and financial controls

Cost-cutting Measures

1982

Responded to sales decline by cutting its workforce and closing plants

New Products

1988

Introduce Ford Taurus and Mercury Sable

New Product Line In China

1997

Began making a minibus line in China, before GM produced any vehicles for the Chinese

Retrenchment

08/2001

Retrench estimated 10% employees using early retirement incentives

Cost-cutting Measures

2002

Close three North American assembly plants, cut 35,000 worldwide jobs and discontinue four vehicle models, namely Ford Escort, Mercury Villager, Mercury Cougar and Lincoln Continental

Large-scale Cost-cutting Plans

01/2006

Large-scale cost-cutting plans up to 2012 as part of a massive restructuring plan called “The Way Forward”, designed to reverse the $1.6 billion loss

Developed EBTR Program

12/2006

Under Ford’s Executive Business and Technology Review (EBTR) program developed in 2006, Ford senior purchasing leaders and their engineering counterparts meet regularly with key suppliers to share Ford’s strategies
in great detail

Introduce New Vans to Fleet Customers

2009

Introduced Transit Connect commercial vans, a highly popular series in Europe, to fleet customers

Recalls

01/2011

Made a series of recalls for Lincoln and Ford vehicles, resulting quality ratings to drop from #8 to #17 and #5 to #23 respectively

Approve Taxis by Major US States

07/2011

Boston, Chicago, New York, Philadelphia approved the Transit Connect Taxi, which are powered by lithium ion batteries, for use

Equity Stakes

Acquisitions, Collaborations, Consolidations, Public Listing, Sales and Spin-offs

First Acquisition

1922

Ford Motor bought Lincoln Motor Company

Largest IPO

1956

Ford Motor went public, offering 10.2 million shares in the largest stock issue at that time

Consolidation of North America Operations

1979

Consolidation of US, Canadian and Mexican operations into its North American Automotive Operations

Purchased Equity Stake in Mazda

1979

Purchased a 25% share in Mazda

Acquire Luxury European Brands Aston Martin & Jaguar

1989

Purchased luxury European brands such as Aston Martin and Jaguar

Acquire Volvo & Formed Premier Automotive Group

1999

Purchased Swedish automaker Volvo and formed Premier Automotive Group (PAG)

Acquire Land Rover from BMW

2000

Purchased Land Rover from BMW

Spin-off of Supplier, Visteon

2000

Spun off its automotive systems supplier Visteon

Consolidate Engineering Groups

2001

Combined car and truck engineering groups

Reduce Suppliers to create ABF

2005

Reduced number of suppliers to create the Aligned Business Framework (ABF) and entered into long-term agreements with select diverse group of strategic global suppliers that help improve Ford quality and lower development and production costs

Sale of Aston Martin

2007

Sold Aston Martin

Sale of Jaguar and Land Rover

2008

Sold Jaguar and Land Rover

Discontinue Mercury Brand

2010

Discontinued the Mercury brand and gave dealers permission to sell remaining new Mercury vehicles under the used vehicle category

Sale of Volvo

03/2010

Sold Volvo to China's Zhejiang Geely Holding

Consolidate and Reduce Dealerships

12/2010

Consolidated dealerships by reducing the number of retail outlets

Cooperate with Azure

07/2011

Signed an agreement with Azure Dynamics Corp. to install plug-in hybrid powertrains in the trucks.

Major External Events

1973 Oil Embargo

10/1973 - 10/1974

Gas prices quadrupled over the span of a few months which the Middle Eastern OPEC nations' embargo to the US

911

09/11/2001

Terrorist Attack in New York

Global Financial Crisis

08/07/2007 - 12/31/2008

Worst financial crisis since the Great Depression

Japan Earthquake & Tsunami

04/11/2011

Fukushima, Japan earthquake, nuclear and tsunami

Federal Government Environmental Regulations

07/2011

Obama administration and the auto manufacturers enter negotiations over new environmental standards