FORD IN THE EUROPEAN COMMUNITY: 1992 AND BEYOND
This research examines the strategy of the Ford Motor Company in the conduct of its European operations. Ford conducts its European operations in the name of Ford of Europe, which is a wholly owned subsidiary of the Ford Motor Company. Consideration of a European strategy is particularly relevant for American firms, as the date 1 January 1992 for further economic integration within the European Community approaches.
The Significance of Ford of Europe to the Ford Motor Company
The Ford Motor Company is the second largest automaker 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 electronics products. Automobiles and trucks, however, contribute approximately 93 percent of the company's total sales, and nearly 100 percent of the company's total profits. Ford is an international company, and approximately 23 percent of its total revenues are contributed by foreign operations, including those in the European Community. Ford of Europe is the largest and most important of the company's operations outside of North America. Over the past five years (1986 1990), Ford of Europe has been the most profitable of all of Ford's operations. The advent of a single European market, which, by the early years of the 21st century, will likely include most of the Eastern European countries, in addition to the Western European countries already served by Ford of Europe, constitutes the most promising opportunity on the Ford Motor Company's business horizon.
The Ford Motor Company's major mission in the early 1990s is to maintain its position in the domestic automobile market. A second important mission is the maintenance of its position as the automotive industry leader in internationa...