FORD IN THE EUROPEAN COMMUNITY

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 whollyowned subsidiary of the Ford Motor Company. Consideration of a European strategy is particularly relevant for American firms, as the date1 January 1992for 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 (19861990), Ford of Europe has been the most profitable of all of Ford's operations. The advent of a single European market, which, by the earlyyears of the 21st century, wi

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wers, along with the United States and Japan. Non member states of the Community, particularly those outside of Europe, are apprehensive over the implications of both further economic and political integration of the organization of nations. Some problems, however, exist with respect to the additional economic integration scheduled for 1992. Details of taxation programs and welfare schemes, as examples, are not specifically addressed in the Single Act of Luxembourg, which is the implementing legislation for 1992. The Single Act, however, does proscribe the use of such factors to deny the free movement of goods and services within the European Economic Community. The Single Act also prescribes reciprocity between member countries. Thus, persons who work in a member country other than their citizenship country will be entitled to all of the social benefits of the host country, and will be taxed the same as host country citizens. Further, business firms will be treated in a similar manner. While tax levels are not prescribed, a leveling will likely occur, as a means of precluding industry flight to lowertax countries. Similarly, member countries with lower levels of social services will likely attempt to raise standards to
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Approximate Word count = 1561
Approximate Pages = 6 (250 words per page)

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