The Strategic Competitive Position Of Ford Motors - Case Study Example

The Strategic Competitive Position Of Ford Motors Strategic & Competitive Analysis of Ford Motors This document delineates a case study of Ford Motors by critically examining its strengths, weaknesses, opportunities and threats and the strategies and its options it has to choose in the face of a highly competitive environment that is marred by global slowdowns and demanding customers. The document also makes observations on its current polices to pursue ambitious goals, for instance - making hybrid cars and solar powered cars a possibility and more affordable in the near future. Finally, the document recommends a course of action that it may adopt to steer clear from looming dangers such as tight financial constraints, thwarting completion, an unstable organization structure with quickly shifting centre of gravity. Contents in nutshell Chapter One – Automotive Industry at a Glance Chapter Two – Company at a Glance Chapter Three – Analyses and Observation Chapter Four – Recommendations Appendices Bibliography References Notes Moving the Movers Muddling Through Difficult Times: Ford Motors - A Case Study Introduction Peter Druker, the founding father of the study of management in 1946 called this as the ‘industry of industries’. The automobile industry over the last century has evolved from ‘craft production’ in 1890s to ‘mass production’ in 1910s and finally to ‘lean production’ in 1970s. US and Japan automakers has played important roles in achieving the feat that the automotive industry enjoys today. Automobile Industry The automotive industry[Wik09] is engaged in designing, developing, manufacturing and marketing and selling of motor vehicles. In the year 2007, around the world, there were 806 million cars and light trucks on the road. The fuel consumed by these vehicles annually stands at a whopping 806 million gallons. The number of vehicles and consequently fuel consumption is slated to a steep rise due to increasing prosperity in the BRIC (Brazil, Russia, India and China) countries. Table 1: World automobile sales - 2007i Region New automobiles sold (in millions) Europe 22.9 Asia-Pacific 21.4 USA & Canada 19.4 Latin America 4.4 Middle East 1.4 Africa 1.4 World wide 71.9 Growing Markets The BRIC countries witnessed the most rapid growth, while South America and parts of grew stronglyii. The markets in North America and Japan were stagnant. Challenges Now the general perception that urban transportation system centered on cars is unsustainable since it is consuming excessive energy, affecting health of populations. Besides, the level of services it provides is declining in spite of increasing investments. Global warming is now attributed to be a direct offshoot of the surge in use of fossil fuel used in cars. Moreover, where is the space to accommodate so many cars? Hence the urgent need for a sustainable transport system that would focus on the solutions to these problems. With rapidly rising oil prices, automotive industry is one of the worst affected, experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. Increasing external completion from the public transport sector is also exerting pressures on this industryiii. A case in point is the forecast about US automobile industry. Nearly, half of US’s light vehicles are projected to be permanently closed in the coming years with loss of another 200,000 jobs in the sector. Consequently, China is fast emerging as the largest automobile producer and market in the world. Trends in the Market Primarily, the automotive market is governed by the demand in the industry. In European markets smaller cars are more in vogue than the US. Record fuel prices are steering the demand towards smaller and hybrid vehicles. For example, the average Toyota Prius gets sold just after 13 of being displayed in the showroom. Ford’s two hybrids — a version of the Escape SUV and Mercury Mariner — are selling well, and inventory levels are tight iv[. Car manufactures are now on the rush to demonstrate their pro-hybrid focus with smaller and more fuel-efficient vehicles being built and sold than ever. Evolution of Fordv Ford is one of the very few companies of the world that has been so closely identified with the development of the industry and progress of the society. Right from its founding days back in 1903 all through the last century, Ford has continuously evolved itself while changing the business, social and cultural climate across the world. Ford continues to flow and grow making it one of the most respected brands in the world. Today and is one three largest car manufacturers of the world. It is quite a journey from its modest $28,000 dollar beginning over a century back to make it a $146.3 billionvi global enterprise. From just 11 in the beginning to the time it went public in 1956, when it had about 350,000 stockholder and to this day when the company’s stock are precious for millions of investors, the company has grown to prove to be a gigantic entrepreneurial monolith. Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures and distributes automobiles across six continents. With approximately 201,000 employees and 90 plants worldwidevii, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit Company.viii Ford produced 5.532 million automobilesix. Since 2007, Ford has received more quality survey awards from J.D. Power and Associates than any other automobile manufacturer in the world. Five of its vehicles ranked at the top of their categoriesx and another fourteen ranked in the top threexi. Perhaps, the greatest contribution by Ford to the automobile industry is the moving assembly lines that helped increase production considerably and reducing cost thereby making it affordable. This is no small a feat, since this single innovation changed the imagination of the common man worldwide. Henry Ford's methods came to be known around the world as ‘Fordism’. Ford is now synonymous with growth and progress. Ford is tantamount to commitment. Ford is a name that exudes confidence. And Ford is a style statement and icon. Even after over a century of existence, the saga of Ford continues… Strategic Analysis To establish Ford’s current position vis-à-vis its goals and objects and to arrive at executable strategies is the key objective of this section of this paper. The following key analytical processes are discussed: Porter’s Five Forces SWOT analysis Resource audit Value chain analysis Porter’s Five Forces Analysis With opening of boarders, the automobile industry is now fully globalised. Michael E. Porter in his book “Techniques for analyzing industries and competitors” has proffered a novel method to analyse an enterprise’s competitiveness and consequently its profitability. Ford’s top four direct competitors include GM, Daimler AG, Toyota Motors Corp. Volkswagen AG. Financial and sales volumes are placed at the appendix. Competitive Rivalry The global automotive industry is characterised by presence of many players of about the same size, little differentiation between competitors, and a very mature industry with little room to manoeuvre, all the indication of a highly competitive industry. In such a case, with higher competition, lower will be profit margin. This is what exactly happening to the many players in the industry now. To remain afloat and to be ahead of the competition, Ford has been providing value added services, some time incurring more costs. Ford’s Easyfinance and long term warranties are steps in this direction. But these are also provided by the competitors too. Threat of New Entrants Competition can be thwarted by some of the following barriers to entry. The existing loyalty to major brands Incentives for using a particular buyer Higher fixed costs, Scarcity of resources High cost of switching companies Government regulations The existing loyalty to major brands, incentives for using a particular buyer, higher fixed costs, scarcity of resources, high costs of switching companies, and government regulations constituted the barriers to entry which in turn reduced the competition in an industry. Ford is aggressively pursuing the customer loyalty factor, for instance in the US, loyalty to American made vehicles and after-sale service are the two weapons against curbing invasion from foreign manufacturers in home ground and ensuring continued presence in foreign soils. Power of Suppliers Suppliers can exert considerable pressure on Ford. However, the company has been able to manage it with a delicate balance of maintaining limited but efficient and loyal suppliers. Ford has also successfully explored the benefits of outsourcing spares globally. Power of Buyers Buyers cannot exert much force on Ford since it is not dependant on a small number of buyers. Availability of Substitutes Cheaper substitutes are a real issue for Ford, especially from China and Indian manufactures. SWOT Analysisxii In the face of severe completion, relevance of SWOT (Strength, Weakness, Opportunity and Threat) analysis can never be obviated. Strengths Some of Ford’s greatest strengths are: Strong brand names with solid reputation of being a dependable car maker Century old established and experienced company Global presence with varied exposures and experience and networks Strong allied services – finance, spare parts Huge size with economies of scale Business diversification into finance sector augments the strength of the company Technology leader and highly innovative Supportive of societal causes, in particular the fight for breast cancer and support after the September 11 attacks in the U.S. High regard to values International operations maintain the company’s buoyancy in any adverse business conditions Weakness Inefficient organizational structure as the company became more complex, hindering Ford's ability to manage its international network of subsidiaries, branches, and companies. The “One Company, One mission, One Goal” campaign recently mooted by the company is a step to counter this issue. Speculations over the likely performance of Ford in the future, as the company’s financing section is bogged down by heavy outstanding debts. Although, the company is not at the risk of bankruptcy, yet it has put the management in a tight spot. Notable management issues within the company, with frequent changes in management within a short period. Increasing competition has made the company more nervous bringing out a weakness as they have failed to overcome the challenges that additional competition brings. Large size could pose serious impediment to its efforts to adjust to the dynamics of global automobile market. Ford had to ride on heavy incentives to boost sales of models, which failed to catch the attention of consumers. Financial constraints prevented Ford from channeling investments towards the manufacture of new models. Failure to control plant capacity also cut down the profit margin. Opportunities Global demand for cleaner engine emissions and fuel efficient environmental-friendly hybrid cars. Ford’s models are impeccably timed. The company is in a position to harvest this opportunity to the maximum. Support and working with environmental groups to help cleanup environment, the company’s enhanced image in the public have generated tremendous goodwill. This can be translated to increased sales. The company’s heavy investment in solar power and the end is a more visible prospect, the company can have the first mover advantage and can leave the completion well behind. The company can increase its scope of opportunities by specialising and rationalising its global operations on a regional basis. It can develop a network organisation in which its subsidiaries would enhance their respective transitional linkages. Producing quality automotive products in their areas of operation at a comparative cost advantage, this provides a huge opportunity especially in the small car section. New opportunities unleashed by exporting vehicles, the parent company's efficiency-seeking strategy; its competitive disadvantage in the small-car segment of the market and the competitors' moves in this market-segment; and the new more flexible regulations in the respective countries in which they have manufacturing plants. Ford’s existing capability to innovate on automobiles, they have the opportunity to have larger market share. Threats Tight competitive rivalry in the market. Competition is escalating, with the threat of new entrants continuously entering into the market from South Korea, China, and India and in Eastern Europe. Susceptible to the risk of movement in the price of raw materials such as steel, glass, rubber and fuel. Economic slowdown and stagnancy in key countries where Ford operates. Substitute fuel such as natural gas, electricity, biofuels, solar power, water poses a distinct threat to the sustainability of company’s sales. The negative ratings given by some of the credit rating agencies in 2005 and Ford’s cash flow and profitability, declining market share, excess industry capacity, industry pricing pressure and rising health care costs are looming threats to its sustainability. Recently, Ford’s strategies to address these issues have been responding in some markets, yet the capability of its new management to deliver remains to be seen. Resource Audit A set of resources, being basic elements required to organise a company’s operational process can tremendously influence its competitive advantage. The ease with which these resources can be substituted governs the sustainability of the competitive advantage of the company. When resources are put together, they can produce competencies and capabilities. Hence, resource audit is of considerable significance for a company if it is to convert resources to competencies. For the present study, four types of resources will be considered: Financial resources Human resources Physical resources Intangible resource Financial Resources  Despite Ford Motor’s mounting losses, $ 12.7 billion in 2006, their century old track record dictates that the company will be able to recover these losses. Ford is still in robust financial condition. Further, it has done away with loss making brands such as Jaguar and Land Rover. In addition, to improve the business and profitability, it has initiated stringent cost cutting measures through reduction in material costs, health care costs, capacity and personnel reductions. These will further reinforce Ford’s financial position. In some regions, signs of economic recovery have given further confidence to its financial position. Human Resources From employee strength of 300,000 in 2006 to 212,000 as of now, Ford has cut down drastically on its bloating human resources. Though to some extent they would adversely affect the operational capability, yet the company is confident to meet these challenges. Physical Resources With approximately 201,000 employees and 90 plants worldwide, Ford is a force to reckon with. One of the noteworthy physical resources of Ford is its Worldwide, Engineering Release System (WERS). This is a fully computerised global communication network that facilitates coordination between subsidiaries and affiliates. The system allows about 20,000 of its workers across the globe to share information pertaining to design and manufacturing. This is a highly useful infrastructure especially for new product development. Another important aspect is Ford’s resilience to rationalise its operations by closing down more plants, downsizing labour force or increasing movement of parts and components between various locations spread across the globe. Neither did it choose to expand its manufacturing operations in low-cost production sites, thus continued to have robust physical infrastructure. Intangible Resources To name a few important intangible resources as, 1. Ford’s strategic alliance and international joint ventures with other auto companies to jointly develop, engineer, design, market, and even produce vehicles. These associations have become in maintaining its competitive position both in specific local as well as in the global market. 2. Through these associations, Ford is able to serve local and global markets, to reduce production, development, and marketing costs, and to cope with excess capacity in the industry. 3. Another advantage these partnerships provide is by contributing to the geographic dispersion and inter-regional integration of various functions of the value-chain of production. 4. They also complement Ford's efforts to develop a global configuration for its organization and network of subsidiaries. Value Chain Analysis The activity a business undertakes is firmly hinged to its competitive activities. Both primary and support activities contribute towards this. Ford is well disposed to implement an effective global strategy because of its superior competitive advantages of its foreign operations compared to many of its competitors such as GM or Chrysler. Besides, some social issues attended by the company to maintain competitive advantage through preserving public goodwill. Some of the social issues attended by Ford across its value chain are: Core Competencies Ford’s core competencies include: Brand management. Ford is known throughout the world and people perceive it a responsible automobile manufacturer. Supply chain management. Ford has a highly coordinated global logistic system that maintains a steady stream of raw materials, spare parts. Managing outsourcing. The dexterity with which Ford manages its outsourced firms leading to excellent inventory management and always on schedule production activities is a matter of its core competency. Ability at the moving assembly line. Ford being the pioneer of such mass production system, they were able to get ahead of the competitors manufacturing processes-wise and were also able to save on costs and time. New product development technology. Under a single product-information-management program, Ford tries to achieve sustainable development through standardising and incorporating its robust new product development technology. Key Challenges The key challenges before Ford are: 1. Tighten focus on its key brands. Ford and the strong-performing Volvo brands will be mainstays, but the company must make a decision on whether Lincoln, Mercury, Land Rover and Jaguar are assets or potential liabilities. With so many brands in its portfolio, Wall Street and auto industry insiders are concerned that important management attention and resources might be spread too thin – to the detriment of all. 2. Streamline production costs. By some estimates, Ford spends around US$800 a vehicle more for parts and components than some of its competitors. 3. Improve the balance sheet. Ford has solid liquidity, but its falling market share and costs of incentives, plus the pending buyout of some 30,000 employees, will eat into the cash. 4. Focus and enliven the company’s brand strategies and marketing to create more trust and desire for the brands the company retains. 5. Recapture (or at the very least halt the dramatic slide) in market share. Merrill Lynch (MER) projects the firm’s share of the North American market will continue to fall by one percent per year for the next few years unless Ford makes some very bold moves. Strategy Recommendations The following recommendations are offered: 1. Aggressively restructure to operate profitably at the current lower demand and the changing model mix. 2. Accelerate the development of safe, fuel-efficient, high-quality new products that customer s want and value. 3. Finance our plan and improve our balance sheet. 4. Work together as one team, leveraging our global assets Measures adopted by Ford 1. Ford is a leader in the safety features, receiving more awards for highway safety than any other car maker. 2. Key initiatives to deliver fuel economy leadership. 3. ONE Ford expands on the company’s four-point business plan for achieving success globally. 4. Unsurpassed quality built in. Ford’s commitment to world-class quality extends beyond Things Gone Wrong (TGWs). 5. Ford SYNC®. Ford is an automotive company that’s thinking like a consumer electronics company. The affordable, industry-leading SYNC technologies and services are going global and expanding in-vehicle connectivity for its customers. 6. Ford SmartGauge™. Ford’s SmartGauge™ with EcoGuide gives hybrid owners a more connected, fuel efficientdriving experience. An innovative new instrument cluster that provides realtime information to help drivers maximize fuel efficiency debuts on the 2010 Ford Fusion and Mercury Milan Hybrids. 7. Active Park Assist. This innovative new feature is available on Lincoln MKS uses an ultrasonicbased sensing system and Electric Power Assisted Steering (EPAS) to position the vehicle for parallel parking, calculate the optimal steering angle and quickly steer the vehicle into a parking spot. These ongoing improvements make us more confident than ever that we have the right plan and are taking the right actions to survive the downturn and emerge as a lean, globally integrated company poised for long-term profitable growth. Country 1000 2000 3000 4000 5000  Japan 11564  China 9345  United States 8705  Germany 6041  South Korea 3807  Brazil 3220  France 2569  Spain 2542  India 2315  Mexico 2191  Canada 2078  Russia 1790  UK 1650  Thailand 1394  Turkey 1147  Iran 1051  Italy 1024  Poland 951  Czech Rep. 946  Belgium 724 Reference: "Production Statistics". OICA. Retrieved 2009-06-24. Top vehicle manufacturing groups (by volume) The table below shows the world's largest motor vehicle manufacturing groups, along with the marques produced by each one. The table is ranked by 2008 end of year production figures from the International Organization of Motor Vehicle Manufacturers (OICA)[17] for the parent group, and then alphabetically by marque. Marque Country of origin Ownership Markets 1. Toyota Motor Corporation ( Japan) Daihatsu Subsidiary Global, except North America and Australia Hino Subsidiary Asia Pacific, North America and South America Lexus Division Global except India Scion Division North America Toyota Division Global 2. General Motors Company ( United States) Buick Division North America, China, Israel, Taiwan Cadillac Division Global, except South America, India, SE Asia, Australia Chevrolet Division Global, except Australia Daewoo Subsidiary South Korea GMC Division North America, Middle East Holden Subsidiary Australia, New Zealand Hummer* Division Global, except South America, China, India Opel Division Europe (except UK), Russia, South Africa, Mid East, China, India Pontiac* Division North America Saab* Subsidiary Global, except India, South America Saturn* Subsidiary North America Vauxhall Subsidiary United Kingdom 3. Porsche Automobil Holding SE** ( Germany) Audi Subsidiary Global Bentley Subsidiary Global Bugatti Subsidiary Global Lamborghini Subsidiary Global Porsche Subsidiary Global Scania Subsidiary Global SEAT Subsidiary Europe, South America, North Africa, Lebanon Škoda Subsidiary Global, except North America and South Africa Volkswagen Subsidiary Global Volkswagen Commercial Vehicles Subsidiary Global 4. Ford Motor Company ( United States) Ford Division Global Lincoln Division North America, Middle East, South Korea Mercury Division United States, Mexico, Middle East Troller Subsidiary South America and Africa Volvo*** Subsidiary Global 5. Honda Motor Company ( Japan) Acura Division North America, China, Russia Honda Division Global 6. Nissan Motor Company ( Japan) Infiniti Division Global, except South America and Africa Nissan Division Global 7. PSA Peugeot Citroën S.A. ( France) Citroën Subsidiary Global, except North America, India Peugeot Subsidiary Global, except North America, India 8. Hyundai Motor Company ( South Korea) Hyundai Division Global 9. Suzuki Motor Corporation ( Japan) Maruti Suzuki Subsidiary India, Middle East, South America Suzuki Division Global 10. Fiat S.p.A. ( Italy) Abarth Subsidiary Global, except North America Alfa Romeo Subsidiary Global Ferrari Subsidiary Global Fiat Subsidiary Global, except North America Fiat Professional Subsidiary Global, except North America Irisbus Subsidiary Global, except North America Iveco Subsidiary Global, except North America Lancia Subsidiary Europe Maserati Subsidiary Global 11. Renault S.A. ( France) Dacia Subsidiary Europe, Latin America, Asia, Africa Renault (cars) Division Global, except North America, India Renault Samsung Subsidiary Asia, South America 12. Daimler AG ( Germany) Freightliner Subsidiary North America, South Africa Master Motors Subsidiary Pakistan Maybach Division Global Mercedes-AMG Division Global Mercedes-Benz Division Global Mitsubishi Fuso Subsidiary Global Orion Subsidiary North America Setra Subsidiary Europe Smart Division North America, Europe, Southeast Asia, South Africa Thomas Built Subsidiary North America Western Star Subsidiary North America 13. Chrysler Group LLC ( United States) Chrysler Division Global Dodge Division Global GEM Division North America Jeep Division Global 14. BMW AG ( Germany) BMW Division Global MINI Division Global Rolls-Royce Subsidiary Global 15. Kia Motors Corporation ( South Korea) Kia Division Global 16. Mazda Motor Corporation ( Japan) Mazda Division Global 17. Mitsubishi Motors Corporation ( Japan) Mitsubishi Division Global 18. OAO AvtoVAZ ( Russia) Lada Division Russia, Europe, North Africa VAZ Division Russia, Europe 19. Tata Motors Ltd ( India) Daimler Subsidiary United Kingdom Hispano Subsidiary Europe Jaguar Subsidiary Global Land Rover Subsidiary Global Tata Division India, South Africa Tata Daewoo Subsidiary South Korea 20. First Automotive Group Corporation ( People's Republic of China) Besturn Division China Freewind Subsidiary China Haima Subsidiary China Hongqi Division China Jiaxing Subsidiary China Vita Subsidiary China Xiali Subsidiary China 21. Fuji Heavy Industries Ltd ( Japan) Subaru Division Global 22. Isuzu Motors Ltd ( Japan) Isuzu Division Global, except North America 23. Chana Automobile Company Ltd ( People's Republic of China) Chana Division China, South Africa 24. Dongfeng Motor Corporation ( People's Republic of China) Dongfeng Division China 25. Beijing Automotive Industry Holding Corporation, Ltd ( People's Republic of China) BAW Division China Foton Subsidiary China 26. Chery Automobile Company Ltd ( People's Republic of China) Chery Division China, Africa, Southeast Asia, Russia 27. Shanghai Automotive Industry Corporation ( People's Republic of China) MG Subsidiary United Kingdom, Chile, Argentina Roewe Division China Soyat Division China SsangYong Subsidiary South Korea, South Africa, Europe, Australia Yuejin Division China 28. AB Volvo ( Sweden) Mack Subsidiary Global Nissan Diesel Subsidiary Global NovaBus Subsidiary North America Prevost Subsidiary North America Renault (trucks) Subsidiary Global Volvo (trucks) Division Global 29. Brilliance China Automotive Holding Ltd ( People's Republic of China) Brilliance Division China, North Africa Jinbei Subsidiary China 30. Harbin Hafei Automobile Industry Group Ltd ( People's Republic of China) Hafei Division China 31. Geely Automobile ( People's Republic of China) Geely Division China, Russia, North Africa Maple Division China 32. Anhui Jianghuai Automobile Company Ltd ( People's Republic of China) JAC Division China 33. BYD Auto ( People's Republic of China) BYD Division China, Russia 34. GAZ Group ( Russia) GAZ Division Russia KAvZ Subsidiary Russia LiAZ Subsidiary Russia Ural Subsidiary Russia 35. Mahindra & Mahindra Ltd ( India) Mahindra Division India, South East Asia, Europe, North Africa 36. Proton Holdings Bhd ( Malaysia) Proton Division Asia, Australia, South Africa, UK Lotus Subsidiary Global 37. Great Wall Motor Company Ltd ( People's Republic of China) Great Wall Division China, South Africa, Russia, North Africa 38. Paccar Inc ( United States) DAF Subsidiary Global, except North America Kenworth Division North America Leyland Subsidiary Europe Peterbilt Division North America 39. Chongqing Lifan Automobile Company Ltd ( People's Republic of China) Lifan Division China 40. MAN SE ( Germany) MAN Division Europe Neoplan Division Europe and Middle East Volkswagen (trucks) Division South America 41. Jiangxi Changhe Automobile Ltd ( People's Republic of China) Changhe Division China 42. China National Heavy Duty Truck Group Company Ltd ( People's Republic of China) Sinotruk Division China 43. LuAZ ( Ukraine) LuAZ Subsidiary Ukraine 44. Navistar International Corporation ( United States) IC Subsidiary North America International Division North America 45. Shaanxi Automobile Group Company Ltd ( People's Republic of China) Shaanxi Division China 46. UAZ OJSC ( Russia) UAZ Subsidiary Russia 47. Ashok Leyland ( India) Ashok Leyland Division India 48. Kuozui Motors Ltd ( Taiwan) Kuozui Subsidiary Taiwan [edit]Notes * General Motors has sold Hummer to Sichuan Tengzhong; is in the process of selling Saab; and is in the process of eliminating Pontiac and Saturn.[citation needed] ** Porsche Automobil Holding SE has a 50.8 percent share in the Volkswagen Group. However, Volkswagen Group will acquire Porsche AG, the automotive manufacturer under a new "Integrated Automotive Group". This merger/acquisition is expected to be fully completed in mid-2011.[18][19] *** Ford is in the process of selling Volvo to Geely Automobile.[citation needed] Top motor vehicle manufacturing companies by volume 2008 Total motor vehicle production Group 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,0007,000,0008,000,0009,000,00010,000,000 Key Cars Light Commercial Vehicles Heavy Commercial VehiclesHeavy Buses Toyota 9,237,780 General Motors 8,282,803 Volkswagen* 6,517,288 Ford 5,407,000 Honda 3,912,700 Nissan 3,395,065 PSA 3,325,407 Hyundai** 2,777,137 Suzuki 2,623,567 Fiat 2,524,325 Renault 2,417,351 Daimler 2,174,299 Chrysler 1,893,068 B.M.W. 1,439,918 Kia** 1,395,324 Mazda 1,349,274 Mitsubishi 1,309,231 AvtoVAZ 801,563 Tata 798,265 FAW 637,720 Fuji 616,497 Isuzu 538,810 Chana Automobile 531,149 Dongfeng 489,266 Beijing Automotive 446,680 Chery 350,560 SAIC 282,003 Volvo 248,991 Brilliance 241,553 Harbin Hafei 226,754 Geely 220,955 Anhui Jianghuai 207,711 BYD 192,971 GAZ 187,053 Mahindra 162,816 Proton 157,306 Great Wall 129,651 Paccar 125,084 Chongqing Lifan 122,783 M.A.N. 108,053 Jiangxi Changhe 107,422 China National 106,377 Porsche 96,721 LUAZ 90,548 Navistar 90,264 Shannxi Auto 75,220 UAZ 72,181 Ashok Leyland 71,485 Kuozui 67,891 Key Cars Light Commercial Vehicles Heavy Commercial VehiclesHeavy Buses Total global production: 69,561,356 Reference: "World motor vehicle production by manufacturer: World ranking of manufacturers 2008". OICA. July 2009. *Volkswagen Group total includes Scania production figures, which OICA lists separately. Scania is a VW Group subsidiary. **Hyundai Kia Automotive Group and Kia Motors are listed separately as the former owns only 38.67% of the latter. Top vehicle manufacturing groups (by volume) The table below shows the world's largest motor vehicle manufacturing groups, along with the marques produced by each one. The table is ranked by the latest production figures from OICA 2008[2] for the parent group, and then alphabetically by marque. Marque Country of origin Ownership Markets 1. Toyota Motor Corporation ( Japan) Daihatsu Subsidiary Global, except North America and Australia Hino Subsidiary Asia Pacific, Canada and South America Lexus Division Global Scion Division North America Toyota Division Global 2. General Motors Corporation* ( United States) Buick Division North America, China, Israel, Taiwan Cadillac Division Global Chevrolet Division Global Daewoo Subsidiary Asia, Europe, South America, South Africa GMC Division North America, Middle East Holden Subsidiary Australia, New Zealand, Middle East Hummer Division Global Opel Division Europe (except UK), South Africa, China, Southeast Asia Pontiac Division North America Saab Subsidiary Global Saturn Subsidiary North America, Taiwan, Japan Vauxhall Subsidiary United Kingdom 3. Porsche Automobil Holding SE** ( Germany) Audi Subsidiary Global Bentley Subsidiary Global Bugatti Subsidiary Global Lamborghini Subsidiary Global Porsche Subsidiary Global Scania Subsidiary Global SEAT Subsidiary Europe, Latin America, South Africa Škoda Subsidiary Global, except North America Volkswagen Subsidiary Global Volkswagen CV Subsidiary Global 4. Ford Motor Company*** ( United States) Ford Division Global Lincoln Division North America, Middle East Mercury Division North America, Middle East Troller Subsidiary South America and Africa Volvo (cars) Subsidiary Global 5. Honda Motor Company ( Japan) Acura Division North America, China, Russia Honda Division Global 6. Nissan Motor Company ( Japan) Infiniti Division North America, Middle East, Taiwan, Korea, Russia, Europe Nissan Division Global 7. PSA Peugeot Citroën S.A. ( France) Citroën Subsidiary Global, except North America Peugeot Subsidiary Global, except North America 8. Hyundai Motor Company**** ( South Korea) Hyundai Division Global 9. Suzuki Motor Corporation ( Japan) Maruti Suzuki Subsidiary India, Middle East, South America Suzuki Division Global 10. Fiat S.p.A. ( Italy) Abarth Subsidiary Global, except North America Alfa Romeo Subsidiary Global Ferrari Subsidiary Global Fiat Subsidiary Global, except North America Fiat Professional Subsidiary Global, except North America Irisbus Subsidiary Global, except North America Iveco Subsidiary Global, except North America Lancia Subsidiary Global, except North America Maserati Subsidiary Global 11. Renault S.A. ( France) Dacia Subsidiary Europe, Latin America, Asia, Africa Renault (cars) Division Global, except North America Renault Samsung Subsidiary Asia, South America 12. Daimler AG ( Germany) Freightliner Subsidiary North America, South Africa Maybach Division Global Mercedes-AMG Division Global Mercedes-Benz Division Global Mitsubishi Fuso Subsidiary Global Orion Subsidiary North America Setra Subsidiary Europe Smart Division North America, Western Europe, Southeast Asia, South Africa Thomas Built Subsidiary North America Western Star Subsidiary North America 13. Chrysler Group LLC ( United States) Chrysler Division Global Dodge Division Global GEM Division North America Jeep Division Global 14. BMW AG ( Germany) BMW Division Global MINI Division Global Rolls-Royce Subsidiary Global 15. Kia Motors Corporation**** ( South Korea) Kia Division Global, except Middle East and Africa 16. Mazda Motor Corporation ( Japan) Mazda Division Global 17. Mitsubishi Motors Corporation ( Japan) Mitsubishi Division Global 18. OAO AvtoVAZ ( Russia) Lada Division Russia, Europe VAZ Division Russia, Eastern Europe 19. Tata Motors Ltd ( India) Daimler Subsidiary United Kingdom Hispano Subsidiary Europe Jaguar Subsidiary Global Land Rover Subsidiary Global Tata Division India, South Africa Tata Daewoo Subsidiary South Korea 20. First Automotive Group Corporation ( People's Republic of China) Besturn Division China Freewind Subsidiary China Haima Subsidiary China Hongqi Division China Jiaxing Subsidiary China Vita Subsidiary China Xiali Subsidiary China Notes * General Motors is in the process of selling Hummer to Sichuan Tengzhong; Opel and Vauxhall to Magna and Sberbank; Saturn to Penske Automotive Group; Saab to Koenigsegg and eliminating Pontiac. ** Porsche is listed as parent company of Volkswagen Group. This is only the case since January 2009, when Porsche acquired more than 50% of the shares of Volkswagen. *** Ford is looking to sell Volvo. **** Hyundai Kia Automotive Group owns only a minority stake in Kia Motors. Ford Motor Co. (F) 9.00USD    0.05 (0.55%)    On Dec 12 DIRECT COMPETITOR COMPARISON   F Pvt1 Pvt2 TM Industry Market Cap: 29.76B N/A N/A 132.25B 23.61B Employ ees: 213,000 66,4091 243,0002 324,222 178.80K Rev. Growth (ttm): -33.80% N/A N/A -38.30% 11.90% Revenue (ttm): 113.85B 59.70B1 148.98B2 200.40B 15.04B Gross Margin (ttm): 7.69% N/A N/A 7.25% 17.83% EBITDA (ttm): 2.95B N/A N/A 4.50B 13.55M Oper. Margins (ttm): -4.41% N/A N/A -5.89% -3.26% Net Income (ttm): -5.22B N/A -30.86B2 -9.59B N/A EPS (ttm): -2.072 N/A N/A -6.11 -1.43 PE (ttm): N/A N/A N/A N/A 10.86 PEG (ttm): N/A N/A N/A N/A 1.41 PS (ttm): 0.26 N/A N/A 0.70 0.70 Pvt1 = Chrysler Group LLC (privately held) Pvt2 = General Motors Company (privately held) TM = Toyota Motor Corp. Industry = Auto Manufacturers - Major 1 = As of 2007  2 = As of 2008   AUTOMAKERS RANKED BY SALES   Company Symbol Price Change Market Cap P/E General Motors Company Private - View Profile Daimler AG DAI 51.57 -0.10% 52.86B N/A Toyota Motor Corp. TM 84.34 1.10% 132.25B N/A Ford Motor Co. F 9.00 -0.55% 29.76B N/A Volkswagen AG Private - View Profile NSANY.PK 16.54 2.61% N/A N/A Honda Motor Co. Ltd. HMC 33.85 1.35% 122.85B N/A PEUGY.PK 34.21 0.00% N/A N/A Fiat S.p.A. Private - View Profile Renault S.A. Private - View Profile References http://www.ford.com http://en.wikipedia.org/wiki/Ford_motors http://www.ford.com/doc/2008_annual_report.pdf http://ivythesis.typepad.com/term_paper_topics/2009/10/strategic-analysis-ford-motor-company.html https://www.oppapers.com/join.php http://www.cisco.com/warp/public/779/ibs/solutions/ecommerce/ford_cp2.pdf http://www.jmc.msu.edu/mciep/research/2007/fr/autordfinalreport.pdf http://www.glgroup.com/News/Decontenting--How-The-Ford-Motor-Company-Made-a-Loser-Out-of-a-Winning-Ford-Model-the-Taurus-and-Destroyed-a-Division-5216.html http://cody.blogs.foxbusiness.com/2009/11/13/digging-deeper-into-ford/ http://www.123jump.com/market-analysis/Toyota-Ovetakes-Ford;-Honda-Passes-Chrysler/34381/ http://www.enotes.com/management-encyclopedia/gap-analysis Notes Read More