FORD WERKE AG

General Motors and Ford Motor are the world's two largest automobile manufacturers in the 1990s (Car, 1992, p. 59). The largest automobile market in the world is not North American, as most Americans assume. Rather, Western Europe is the world's largest automobile market. Both General Motors and Ford are major players in European automobile manufacturing (Johnson 1990, p. 17). Ford Motor Company has followed a deliberate strategy of locating major production facilities within the markets being served and targeted.

Ford conducts its European operations in the name of Ford of Europe, which is a wholly-owned subsidiary of the Ford Motor Company (Leach, 1994, p. 104). Ford Werke AG is a component of Ford of Europe (Johnson, 1991, pp. 2-3). Consideration of a European strategy such as that pursued by Ford Motor Company is particularly relevant for American firms because of the increase in economic integration within the European Community.

The Ford Motor Company is the second largest automobile maker in the United States and one of the world's largest automobile manufacturers, as well as being one of the world's largest private sector companies. In addition to automobiles, the company also makes trucks, tractors, farm equipment, and ele

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Europe. By 2010, integrated Europe will likely include most or all of the European republics of the Former Soviet Union, including Russia. Most of the economic barriers that separated the present member countries of the European Economic Community disappeared on 1 January 1992. More complete economic integration is intended to bring about the free movement of goods, services, capital, and labor within the community states, and provide more than 320 million Europeans with barrier-free commerce similar to interstate commerce enjoyed within the United States. By 2010, this market may number 750 million Europeans, if the European republics of the Former Soviet Union are incorporated into the European Community. For non European Economic Community companies with operational bases within the Community, such as Ford of Europe of which (as has been noted) Ford Werke AG is a component, the 1992 increased integration in Europe resulted in improved operational efficiency. For companies exporting into the European Economic Community, however, their success subsequent to 1992 has depended largely on (1) the industry within which they function, and (2) the ability of their home countries to reach agreement with the Europeans on trade iss
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Approximate Word count = 1595
Approximate Pages = 6 (250 words per page)

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