the last five years have remained relatively stable, but cost of goods sold as a percent of sales have increased resulting in a lower Gross Profit. During the same period, Selling, General and Administrative expenses have been trending upward. As a result, Ford a loss in calendar year 2001 of over $5.3 billion. Since then, Ford has recorded two successive years of modest profits.
Opportunities and Threats: Fluctuations in vehicle sales at Ford is can be either an opportunity or a threat to Ford. Unit sales are affected by many factors, including:
The mix of vehicles and options sold
The margin of profit on each vehicle sold
The types and level of "incentives" Ford offers dealers or buyers
The costs for customer warranty claims
The costs to enhance vehicle safety standards, emission controls, and fuel economy
Ford's ability to effectively manage or control costs
Ford's ability or lack of ability to 'recover' cost increases throu
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