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Ford motor is one of the pioneers in auto manufacturing sector. It possess large market share of
auto market and operating globally so Ford is recognized as a globally oriented company. Ford
offers a large variety of products to its consumers and its product line caters all income classes
and social classes of society.

Ford has a large frame work of research and development so it keeps on inventing new products
to cater the new market needs. After rise in fuel prices a need was felt in market that in future
consumers will prefer to buy those vehicles which consume less fuel so being proactive Ford has
already started working on producing hybrid energy vehicles and it has also started a joint
venture with British Petroleum to develop hydrogen power.

Ford has various brands and all of them have their own unique and distinct brand image which
helps Ford to attract consumer from all sectors of life. Ford has been successful in developing its
image as a patriotic company in United States due to which its customers are very loyal to it and
prefer its products even if they lag behind in some features. Ford is also considered to be an
environment friendly company because it has invested a lot of funds in efforts to develop
environment friendly cars and to develop alternate fuels. It also ran an awareness campaign
about breast cancer which also enhanced its corporate image.

Despite that Ford sales are facing a declining trend but still its revenue has been above $150
million and its total assets have increased as compare to last year. Even after recession Ford has
been successful to maintain its market share constant in European markets over last five years. It
is ranked 7th in global fortune 500.

 

Most prominent weakness of Ford motors is its poor performance in North American region due
to which Ford is compelled to close down its 14 manufacturing facilities in North America.
There is a dire need to look into it that what¶s going wrong in there? Because if it went
unaddressed that may be these factors who caused closed down in North America may cause
trouble in operations in other regions too.
ãther weakness is also of almost equal importance, because Ford is losing its market share
constantly over last 4 years due to this. Ford is unable to offer desired products to their
consumers after increase in fuel prices consumers are demanding vehicles which consume less
fuel and Ford competitor¶s like Honda and Toyota are offering these kind of vehicles that¶s why
ford is constantly losing its market share to its competitors.

Ford is offering just 36000 miles warranty where as its competitors are offering warranties of
their vehicles up to 100,000 miles.

After being hit by recession, Ford is constantly laying off its resources in result of it Ford has cut
almost 30,000 jobs up till now these job cuts are affecting its corporate image and performance
too. Ford is also liable for paying large amount of unfunded pension and health care obligations.
And due to constant recalls Ford corporate image has severely affected and also wasted a lot of
funds too.

After analyzing its financial statements it is evident and Ford is operating with large amount of
debt than its competitors which is making its operations costly and resulting into less profit
generation or even loss.

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2006 2005 2004 Industry Average

Current Ratio 0.93 1.17 0.94 1.5
Quick Ratio 0.717 0.98 0.733 1.1


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2006 2005 2004 Industry Average

Debt to total asset 1.01 0.95 0.94 N/A
Debt to Equity 81.4 19.53 17.23 N/A
LTD to Equity 49.65 11.33 10.78 N/A
TIE ratio -0.71 1.128 1.686 N/A









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