Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Why U.S automobile company such as Ford had great lost in 2006 and how it influences on the U.S auto market - Essay Example

Comments (0) Cite this document
In conclusion, U.S. automobile industry, one of the backbones of the U.S. economy, is in dire straits. U.S. car makers may have been the best decades ago but emerging overseas competitors are gradually seizing that position…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.7% of users find it useful
Why U.S automobile company such as Ford had great lost in 2006 and how it influences on the U.S auto market
Read TextPreview

Extract of sample "Why U.S automobile company such as Ford had great lost in 2006 and how it influences on the U.S auto market"

Download file to see previous pages (Isidore) Plans to cut-off more jobs were also announced and more than half of its U.S. hourly workforce had already agreed to take one of its buy-out schemes in the next few months.

For the first time, Ford Motors is mortgaging its total assets to finance all of this restructuring. It hopes to raise $18 billion from its factories, equipment, office buildings, patents and trademarks, and stakes in subsidiaries; an amount that exceeds the company's total market value of all its outstanding stock by more than $2 billion. This move has never been done before as Ford Motors' credit line has always been good and it can borrow money without mortgaging its assets (Bunkley)

So what is really happening to Ford Motors and the U.S. automobile industry as a whole Why is it losing so much while its overseas counterparts like Toyota and Honda, are moving towards the opposite direction Declined Sales, Quality Issues, Marketing Strategy, Labor Cost Discrepancies, Productivity and Currency Exchange Rates are the principal factors.

Declined Sales - Overseas Automobile makers share in the U.S. market had steadily grown through the years. Chart 1 shows how Japan and the European markets had slowly crept up in market share from the 70s to the present, a trend that had Toyota surpassed Ford Motors as being the second biggest seller of automobiles in the U.S. This loss in the market share however, is not experienced by Ford Motors alone but by practically all U.S. automobile manufacturers as well. Honda has exceeded Chrysler in sales and is almost catching up with Ford. On the other hand, General Motors has not had the lowest share in new car and light truck sales since the 1920s. (Train & Winston)
The pickup trucks, though still considered as the nation's best selling vehicle, also experienced very low consumer demand in 2006. Ford Motors' F-series pickups, regarded as one of its main product lines had a major sales drop exceeding 100,000 units. (Isidore) This shows the magnitude of the dire state the U.S. car makers are facing. With surging oil prices in the world market, consumers are opting for the more fuel efficient smaller cars, vehicles that does not guzzle gasoline like light trucks do. With this preference shift, U.S. automakers, such as Ford Motors are left with many truck factories that can't afford to be operational but stay inactive.
Adjusting to the changes, U.S. car makers are not only closing their truck factories but have re-focused towards the smaller "cross-over" type cars which are scaled down versions of SUV. While GM announced its plans to shift towards building more small vehicles in the Beijing auto show last year, Ford Motors also confirmed that it will cease its Freestar minivan production and redirect its focus on building more crossover vehicles (CBC)
Quality Issue - Sales drop due to quality issues is totally another story. Of this year's "Top Picks" lists based on the annual Consumer report, all picks are vehicles made by Japanese automakers. It has been two years in a row that no American cars made it to the list. To merit a Consumer Reports' recommendation to the "Top Pick", the car must pass certain criteria like reliability, safety, ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Why U.S automobile company such as Ford had great lost in 2006 and how Essay”, n.d.)
Why U.S automobile company such as Ford had great lost in 2006 and how Essay. Retrieved from
(Why U.S Automobile Company Such As Ford Had Great Lost in 2006 and How Essay)
Why U.S Automobile Company Such As Ford Had Great Lost in 2006 and How Essay.
“Why U.S Automobile Company Such As Ford Had Great Lost in 2006 and How Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Why U.S automobile company such as Ford had great lost in 2006 and how it influences on the U.S auto market

CLS v. Martinez, 561 U. S

A LEGAL BRIEF ON THE RECENT U.S. SUPREME COURT RULING IN CLS V. MARTINEZ, 561 U. S. On June 28, the United s Supreme Court gave a ruling on the CLS vs. Martinez, 561 US ___130 S.Ct. 2971, 177 L.Ed.2d 838 (2010). The case was filed by the Christian Legal Society (CLS) at the Hastings College of Law at University of California on the ground that official governing groups should accept all the students regardless of their beliefs and status to acquire recognition. The respondents were Leo Martinez, Acting Chancellor and Dean of Hastings College of Law, University of California; Jacqueline Ortega, Student Services Director; the Board of Directors of Hastings College of Law, University California: Donald Bradley, Tina Combs, Maureen Co...
3 Pages(750 words)Coursework

The growth of the U. S. Military

..., the Great Britain collapse contributed to the start of the Cold War. Before its collapse, Britain brought about a balancing effect in west Europe. Now that Britain was out of the picture, the United States took over. It was evident that the United States and the Soviet Union had differing goals on reconstructing the world after the world war two and the different interests gave rise to a cold threat. Towards the conclusion of the World War II, the American military had succeeded in making the first nuclear bombs and bombed Japan, causing immense damage. There was an intense fear of the nuclear warfare and this heightened the tension between east Europe and the west. Both countries wanted to exert a form of social and political control...
6 Pages(1500 words)Research Paper

Complexities of the U. s financial system

...? Complexities of the U. S financial system Complexities of the U. S financial system The US financial system is extremely complexand is affected by a number of environmental factors, which include the economy and federal regulations. The complexities inherent in the US financial system also impact different aspects of the economy, as well as the existence of businesses and individuals in the country (Pryor, 1996). This paper will examine the complexities of the US financial system, discussing different aspects of the system, for instance, financial markets and the Federal Reserve System. The US financial system consists of the financial markets, which impact individuals, businesses and the economy. Efficiently operating financial markets...
3 Pages(750 words)Assignment

U choose

... by a number of Artists in America (strongly influenced by European expatriates) who had grown up during the collapse of world order, influenced by World War II and the Cold War aftermath. The artists saw the two art movement of 1930s called the Social realism and Regionalism – failed to satisfy their desire for artistic growth. They were therefore, influenced by European refugees whose approach to art opened up new possibilities for artistic growth. The refuges included the German Expressionist George Grosz (1893-1959),  Arshile Gorky the Armenian-born , who settled in the US in 1920, the Cubist Fernand Leger (1881-1955), the German-born Hans Hofmann who migrated to America in 1930, the Bauhaus abstract painter Josef Albers (1888-1976...
14 Pages(3500 words)Research Paper

Inaugural addresses by U. S. Presidents

...Disarmament Disarmament is the process of laying down arms, specifically the reduction or abolition of a nation’s military forces or armaments. In his inaugural address, John F. Kennedy exhorted the adversary nations of America to turn to the ways of peace by focusing on disarmament. The president requests the adversaries “...that both sides begin anew the quest for peace, before the dark powers of destruction unleashed by science engulf all humanity in planned of self-destruction” (Kennedy, 1961). This is a motivational speech in which Kennedy reminds other nations the futility of hoarding modern destructive weapons. Kennedy was worried over the present status of affairs where nations are overburdened by the cost of modern... Disarmament is...
2 Pages(500 words)Essay

U. S. Constitution

...US Constitution s right in American political system refers to the political rights reserved for the governments. Even though America asa whole has a federal government, each state in America has separate state governments. US constitution provides some specific rights to the state governments in law making even though all the state governments are operating under the federal government. The rights of the state government are protected by the tenth amendments (Part of bill of rights) in US constitution. According to The Tenth Amendment to the U.S. Constitution; “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States, respectively, or to the people” (Tenth Amendment...
1 Pages(250 words)Essay

The U>S Legal System

.... The admission of the stocking tops did not deprive the defendant of a fair trial. Therefore, he was not denied the due process of law. What was being done was just gathering evidence, and the authorities had the right to access his house. Task 3: General Admissibility of Relevant Evidence is applicable in this case. It provides that all evidence that is relevant is admissible, although with certain exceptions, and that irrelevant evidence is not admissible. That is why even after finding the stockings in his house, it was not sufficient evidence to incriminate the accused. Works Cited The People, Respondent, vs. Admiral Dewey Adamson, Appellant. No. 4622. Supreme Court of California. January 4, 1946. Print....
1 Pages(250 words)Assignment

The Goals of the U. S. Defence Department Network

...The Goals of the U. S. Defence Department Network Although the goals of the U. S. Defenсe Department network were to control weapons systems and transfer research files, other uses for this network began to appear, such as: telecommunication, entertainment, management and so many commercial and business activities. However, these uses were not exhaustive and always positive as some other negative uses started to emerge all over the globe. Introduction The ‘Internet’ is often regarded as new revolution in the field of networking and communications. In the contemporary era, the internet that has revolutionised communications world unlike nothing in the past. The telegraph, radio, and telephone, which were the most commonly used medium...
12 Pages(3000 words)Essay

U S History

"Crisis of Confidence" in the United s The United s was a dominant world power in the 1970’s even though the countries self-perception was mired in doubt and malaise. The stagflation of the country’s economy, the experience and results of the Vietnam war, the lack of confidence of the government by the people as it was no longer perceived as a champion of freedom, the Watergate imbroglio all contributed to the “crises of confidence” in the country. The debt on the dependency of US citizens and the government increased resulting to difficult times. Jimmy Carter came into power at the time after the country’s failure in the Vietnam and Watergate scandals. A leadership crisis emerged that was characterized by deep and widespread lack...
2 Pages(500 words)Admission/Application Essay

S&S Air Company

...S&S AIR COMPANY Internal growth rate= (Return on Asset x Retention ratio Return on Asset x Retention ratio) Return on Asset= 2,029,766/19,986,170=0.10 Retention ratio= 1-dividend pay-out; Dividend pay-out= 610,000/2,029,766=0.3 1-0.3=0.7 IGR= (0.1 X 0.3)/1-(0.1 X 0.3) 0.03/0.97=0.031 3.1% Sustainable Growth Rate= (Net income/ Shareholder’s equity) x (1-retention ratio) (2,029,766/11,435,815) x (1-0.7) 0.18 x 0.3=0.053 5.3% Internal growth rate: This percentage of (5.3%) is the maximum growth S&S Company can grow with external financial aid. Sustainable Growth rate: Refers to the growth rate a S&S Air company can grow without external financial aid. The rate is 3.1% Question two Forecasted sales; 40,259,230(1 +0.12...
1 Pages(250 words)Case Study

Market Structure

The market structure is mainly classified based on the number of active players in that market. These market players are the main component to supply a particular type of product in that market. If we look at the economists' view, these players within an industry are the main parameter for the level of competition in that industry. Whether it is a perfect competition or monopolistic competition these players supply only a small portion of the total output for the industry but this small contribution only determines the main market structure. If we talk about the market types there are few players in the oligopoly markets, only two in duopoly and a single player in the monopoly markets.
If we talk about car manufacturing compa...
10 Pages(2500 words)Coursework

The Great Gatsby by F Scott Fitzgerald

... in a flowing white dress, such that the reader sees a clean slate, a blank canvas and a picture of innocence which is how many people choose to see America. Nick Calloway, the story’s narrator, gives a hint as to how such a blank slate might not be a great thing as he describes the first glimpse of Daisy to be had: “They were both in white, and their dresses were rippling and fluttering as if they had just been blown back in after a short flight around the house … the caught wind died out about the room, and the curtain and the rugs and the two young women ballooned slowly to the floor” (8). By equating Daisy and her friend Jordan with the curtains and rugs, Nick indicates that neither of them has a personality or presence of their own...
10 Pages(2500 words)Book Report/Review

Economic Models: The Free Market and The State Owned System

The free market concept is mainly a theoretical concept as every country, even capitalist ones place some restrictions on the ownership and exchange of commodities (Free market economy). Therefore, the term free-market economy primarily means a system where the buyers and sellers are solely responsible for the choices they make. It gives the buyers and sellers the power to do business without being afraid of any regulations and intervention by the state. Hence, a free market gives the absolute power to prices to determine the allocation and distribution of goods and services (Free Market Economy). The pricing mechanism is in turn, driven by the forces of demand and supply of goods and services. Demand and supply of...
9 Pages(2250 words)Case Study

Benefit of Partnership to Company, Trade Union and Government

The John Lewis model of partnership states that the ultimate purpose of business is the happiness of all its members. Hence, when partners “share the responsibilities of ownership as well as its rewards of profit, knowledge, and power”, it is mutually beneficial to all members of the organization (ILO, 1996). The partnership can be a part of the commitment to pluralism and also a part of the non-union agenda (Bacon & Storey, 2000). The national agreement Partnership 2000 defines workplace partnership as “an active relationship based on recognition of common interest to secure the competitiveness, viability, and prosperity of the enterprise” (Doherty, 2008). The interest in the partnership has arisen due...
6 Pages(1500 words)Case Study

Money Policy versus Credit Market

Financial institutions generally engage in securitization to enhance their profits by trading in the collateralized backed securities that generate high yield returns to the financiers. This nevertheless inversely and negatively affected the credit markets as their efforts to enhance their liquidity positions backfired. Consequently, the import of these monetary strategies has generated cyclical effects on the monetary system to the detriment of the financial system.

Normally, money markets demonstrate a more efficient allocation of credit whenever additional liquidity is injected into the system, which would otherwise display some undesirable distortions. Ultimately, the liquidity market is not easily susceptible to ex...
6 Pages(1500 words)Case Study

Approach to Education: Comparison of Philosophies of A S Neill & Paul Hirst

He believed that to impose anything by authority is wrong. The child should not do anything until he comes to an opinion – his own opinion- that it should be done. He states clearly his commitment to freedom of a child: ‘we set out to make a school in which we should allow children to be themselves. In order to do this, we had to renounce all discipline, all directions, all suggestions, all moral training, and all religious instruction. The child should never be forced to learn, Attendance at lessons should be voluntary whatever the age of the child. Only learning that is voluntarily undertaken has any value, and children will know themselves when they are ready to learn. (Summerhill , p.37)

Children will on...
9 Pages(2250 words)Report

The Trends in the Steel Industry and How It May Impact Nucor Corporations Strategy

The whole organization at Nucor’s revolves around the laid principles and focus on reinforcing to the extent that the organization is known for its culture and quality. Simultaneous quality checks and adherence are also as important building a strong culture for the organizations.

Nucor Corporation has always tried to challenge itself for further progress and to keep abreast of the industry of steel business.

Let us look at the trends observed in the business of the steel industry. The trend in the steel industry is very dynamic and always impacted by internal and extraneous factors. For almost 50 years the United States of America reigned in the industry of steel production, almost half of the entire p...
8 Pages(2000 words)Case Study

The 1846 Invasion into Mexico by the U. S.: The Political and Economic Forces that Brought about the Invasion

Some of the territories led to a war with Mexico from which the United States emerged victorious, expanding its territories and decisively establishing its dominance in North America.

President Andrew Jackson led an example of an administration that set the stage for the way in which James Polk would lead. In 1817, as a still yet military leader, Jackson led the United States into the first of three conflicts with the Seminole Indians from which the acquisition of Florida from Spain would be negotiated and finalized. The situation with Spain was tenuous and should have been dealt with in a diplomatic and cautious manner, but in 1817 President Monroe wrote a letter to General Jackson stating that “Great interests...
8 Pages(2000 words)Article

Marketing of Services: Starbucks Company

The employees are also awarded stock options. Through this, their salary may rise by 14% of the gross pay. The stock investment plan allows the buyers to buy common stock of the company at a discount. They can get hold of it in 85% of the fair market value. The other fringe benefit that the company provides is that of “Future Roast” 401(K) Plans. The employer matches the employee’s contribution to this plan by adding from 25 to 150 percent of the first 4 percent of pay. It is depended on the length of the service.

All these benefits get reflected in the result of employee job satisfaction. In Starbucks, the Employee Job Satisfaction rate is 82% as per the report of Hewitt Associates Starbucks Partner V...
6 Pages(1500 words)Assignment

How Do Customers Assess Service Quality of Retailing Websites

Given the emergent nature of online commerce, it is a tough task for retailers to develop a website that meets all expectations from consumers. This view is supported by a survey conducted by the UK’s largest e-consultancy Cap Gemini. The survey identified several key disadvantages for online shoppers. Some of these include “’ Availability’, ‘Can’t be in to receive delivery’, ‘Premium charged for delivery’, ‘Can’t see or feel the merchandise’, etc.” (Quader & Quader, 2008) These are not trivial complaints by any means and despite the e-retailing industry setting foot into its third decade in existence, there are no satisfactory solutions found for th...
6 Pages(1500 words)Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Why U.S automobile company such as Ford had great lost in 2006 and how it influences on the U.S auto market for FREE!

Contact Us