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Case Study Proposal Format Ford Motor Company Recalls on Ford Vehicles - Essay Example

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In attempts to revamp their offering and adding new features to their cars, their production line has been marred with assembly mishaps that have led to significant…
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Case Study Proposal Format Ford Motor Company Recalls on Ford Vehicles
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RECALLS ON VEHICLES AT FORD MOTOR COMPANY d RECALLS ON VEHICLES AT FORD MOTOR COMPANY Introduction Ford, the second largest automaker in the US, has been under the limelight for all the wrong reasons lately. In attempts to revamp their offering and adding new features to their cars, their production line has been marred with assembly mishaps that have led to significant recalls over the years. These recalls are both voluntary and forced and reflect the company’s struggle to get their vehicles right. Recalls over the years have also hampered their new launches, for example the recent Lincoln MKZ’s sedan that they had heavily spent advertising for during this year’s super bowl. As the sales increased, the recall issue arose and juggling the two between the limited dealers capacity, brought the sales for Lincoln MKZ down (Miller, 2014).
PROBLEMS FACED
The ford cars have been marred with a number of recalls over the recent tines for a number of problems. Ford recalled it 2013-14 c-max engine cars and escape due to software malfunctions that may delay the activation of the airbags. The company recalled 2013 Ford C-max energi in order to rectify the potential problem in a defective child lock installation in the rear door of the car. Ford also recalled 2013 Ford focus Electric and C-max vehicles because of the inability for the door chime to work when the driver’s door was open. Ford recalled 2013 C-Max hybrids because the lack of panoramic roofs did not make it compliant to the federal laws for protecting against vehicle head injuries. Ford also recalled 2012-13, Ford Edge due to the fire hazards that may result from the potential leaks from its 2.0 liter engines (Edmunds.com, 2014).
These are just some of the recent recalls. Ford has a strong history of recalls for problems that range from assembly issues, defective components to non-compliance with state laws. The Ford escape is one major example that has been recalled 10 times for different reasons. This portrays the company’s inability to show consistency in offering perfect vehicles.
The recurring nature of these recalls depict the fact that ford needs a strategic organizational overhaul to strengthen its key production department functions like quality control, product testing, compliance, assembly supervision actions etc.
MANAGEMENT CONCERNS
Alan Mulally, former CEO of Ford spoke at the automotive news world congress to voice his company’s challenges of increasing production, introducing innovative vehicles and delivering these launches on time (NAUGHTON, 2010). However the current Mark Fields faces is keeping the company’s image up, revamping its production line to rectify the recall situation on all levels and maintaining positive investor relations amidst the prevalent situations.
A number of solutions have been initiated and proposed for its numerous recalls. For example, to tackle the fire hazards of the Ford Escape, the company has a twofold strategy in place where the on the larger recall they intend to enhance the cooling and safety systems of the car and modify the engine shielding (Reuters, 2013). For smaller recalls they will empower the dealers to replace the engine compartment fuel line, which is the root cause of the problem (Rogers, 2014). BSM systems can help Ford manage its inventories, prevent the probability of assembly line or component malfunction and being the car systems up to the mark.
INTENDED OUTCOME
Tackling the root cause of the problem that cause the recalls and taking steps to ensure that they won’t occur again can help the management bring Ford back to its former glory as the leading automobile brand of the US. Once the problems with vehicle malfunctions and recalls are tackled the company can focus on new launches and development of its luxury line of cars.
REFERENCES:
Edmunds.com, (2014). Ford Recalls - Ford Safety & Defect Recall News. [online] Available at: http://www.edmunds.com/recalls/ford.html [Accessed 24 Jul. 2014].
Miller, D. (2014). 1 Huge Risk for Owning Ford Motor Companys Stock This Year (F). [online] Fool.com. Available at: http://www.fool.com/investing/general/2014/07/22/1-huge-risk-for-owning-ford-motor-companys-stock-t.aspx [Accessed 24 Jul. 2014].
NAUGHTON, K. (2010). CEO Mulallys mission is refocusing Ford on Ford | Wichita Eagle. [online] Wichita Eagle. Available at: http://www.kansas.com/2010/01/17/1140248/ceo-mulallys-mission-is-refocusing.html [Accessed 24 Jul. 2014].
Reuters, (2013). Ford recalls 2013 Escape SUVs for seventh time. [online] Yahoo News. Available at: http://news.yahoo.com/ford-recalls-2013-escape-suvs-seventh-time-155441353--finance.html [Accessed 24 Jul. 2014].
Rogers, C. (2014). Ford recalls 101,000 vehicles to fix safety defects. [online] Online.wsj.com. Available at: http://online.wsj.com/articles/ford-recalls-101-000-vehicles-to-fix-safety-defects-1404829612 [Accessed 24 Jul. 2014]. Read More
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