Introduction: The worldwide automotive industry, including that portion controlled by Ford Motor Company, is affected by a number of factors over which Ford Motor Company (Ford) has little control, including general economic conditions worldwide. In the United States, the automotive industry is a highly competitive and cyclical business in which there are a wide variety of product offerings. The number of cars and trucks sold, known as industry demand, can vary substantially from year to year. In addition to general economic conditions, factors influencing industry demand include the cost of purchasing and operating cars and trucks, the availability of credit, the cost of credit and the cost of fuel. According to Thomas Watson (2004), the big three U.S. carmakers continue to compete head to head for market share and dominance in the all-important U.S. auto market (Watson, 2004).
Business History: Ford Motor Company began business in 1903. With an initial investment of $28,000, Henry Ford began to create what today is one of the world's largest corporations. Perhaps Ford Motor Company's single greatest contribution to automotive manufacturing was the moving assembly line. This technique greatly increased efficiency through specialization by allowing individual workers to stay in one place and perform the same task repeatedly on multiple vehicles that passed by them.
Business Description: Ford owns a group of automotive brands including Ford, Lincoln, Mercury, Mazda, Jaguar, Land Rover, Aston Martin, and Volvo. Ford is a global company with two core businesses: the automotive business, and the financial services business. The financial services sector primarily includes two segments: Ford Motor Credit Company, a wholly owned subsidiary of Ford, and The Hertz Corporation, an indirect, wholly owned subsidiary of Ford. Ford Motor Credit provides vehicle-related financing, leasing and insurance. Hertz rents cars and light truc...