s increases in the European market. Total revenues for the automobile manufacturer also rose, climbing to $36.2 billion from $35.2 billion for the same period last year.
Since 1994, Ford has been split up into five vehicle centers. Eschewing its previous system - which had divided the worldwide organization along regional lines - the new system allows each center to be responsible for a specific group of products - from conception to design, manufacturing, marketing and sales. The rationale for the corporate realignment is to allow for a better use of resources, as well as the reduction in product complexity. Ford hopes that these new vehicle centers will also result in substantial cost reductions as larger quantities of a particular product are built.
Relying on advances in information technology, Ford expects to be able to profit through its use of comprehensive communications networks linking individuals from throughout the company and enabling members from each vehicle center to be able to easily discuss problems face to face, share sketches, and demonstrate real models throughout the design process. The automobile manufacturer expects that this new strategy will prevent many mistakes that used to result from a lack of communications within the massive organization. To assess whether or not the strategy will continue to be an effective one, investors and analysts will likely focus on two critical management responsibilities: maintaining adequate liquidity; and achieving satisfactory profitability.
Headquartered in Dearborn, Michigan, the Ford Motor Company is number two in the U.S. and world automobile sales (after General Motors). Ford's principal business is the manufacture and sale of cars and trucks under the Ford, Lincoln, Mercury, and Jaguar nameplates, but it is also one of the largest U.S. financial services providers. In addition, Ford also owns rental car company Hertz and 25 percent of Mazda. Ford builds five ...