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Ford in the Global Car Industry

Global context of management assesment

April Finney

on 26 May 2011

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Transcript of Ford in the Global Car Industry

and the Global Car Industry SWOT Analysis Ford in Japan Ford in China Ford in Germany Future trends and Recommendations Ford (yellow) and
GM's (blue) stockmarket
position- May 5th 2011
Wall street Journal •Strongly established brand name/image
•"One Ford Strategy"
•Growing Ford Europe
•Technologically innovative and responsive •Operations in north America weakening
•Tarnished brand image
•Low captial spending •The ‘way forward plan’
Open up into the environmental market of Hybrid cars
•New markets in India and China Rising raw materials costs
Uncertain Economic conditions
•High industry rivalry and competition •Ford ranks third in sales in Germany behind leading German car manufacturers VW and Opel.

•Today Ford’s presence in Europe and particularly in Germany is ever-increasing as the company’s leading designs like the Ford Fiesta and Ford Focus become increasingly popular in the midst of competition from similar cars like VW’s golf and polo. Fords Position
in Germany STRENGTHS WEAKNESSES OPPORTUNITIES THREATS •However while VW comfortably maintains its position as Germany’s favourite car manufacturer and encountered a 58.3 % increase in sales in 2009 for its VW Golf range alone, Ford with its fiesta range evidenced the growing popularity of the company in Germany.
•In 2009 the Ford Fiesta, shot up to sixth most sold new car in Germany from position 20 in 2008 as reflected in an increase of 135.9% in sales. Ford sold 102,571 Fiestas in Germany in 2009.
•The German manufactured Ford Fiesta is Ford’s strategic new global small car as part of its ‘One Ford’ Global Growth Plan.
•The introduction of the new Fiesta range has allowed Ford to increase its presence in the small car market across the globe and has responded directly to the competition posited by VW with its popular small car ranges.
•The fiesta proves that small car drivers can enjoy a wide selection of convenience technologies and luxury appointments without sacrificing top fuel efficiency. Fords success in Germany
with Ford Fiesta With respect to market share the Ford Motor Company continues to improve and despite maintaining a position behind VW, has proven to be the most successful with a 33.7 percentage change in increasing market share. VW global position Vs Ford Global Position

Source: OICA Way forward plan 2006-2012
Favourable conditions in Germany due to the 'car scrapping bonus' and increase in plant production
Competitive Chinese market share
Reduced exports in China due to recent split of Changan
Promising market prospects in Japan despite the earthquake Fords Market position in China Fords Future In China A Positive Outlook A Negative Outlook The 2011 Japan Earthquakes had a negative effect on the Japanese car market, as well as on a global scale with competitors.
Ford has suspended work in 3 plants and idled a trio of overseas factories to conserve autoparts.
Fords production abilities have declined.
Toyota’s future factory output is predicted at 70% from a low of 30%.
Toyota has a good position in the U.S market as they can quickly restore production and current Toyota buyers can wait a few months to purchase Toyota cars instead of seeking alternatives (i.e. Ford).
Prior to the earthquake, Japan’s car sales were increasing, and U.S sales decreasing. “Ford and its joint ventures (Changan Group) ended last year with 3.5 % of the Chinese market, or about 580,000 sales” March 2011 Market share figures “One Ford ” Strategy
- 15 new cars by 2015
- Double dealership number
(340) in china by 2015
- Planned to build a new engine
manufacturing plant in the
south-western city of Chongqing.
The Chinese government
wants 5 million electric vehicles.
Ford has invested significant
amounts in electric car hardware “One Ford ” Strategy
- 15 new cars by 2015
- Double dealership number (340) in china by 2015
- Planned to build a new engine manufacturing plant in the south-western city of Chongqing.
The Chinese government wants 5 million electric vehicles.
-Ford has invested significant amounts in electric car hardware Only TWO WEEKS ago

The Changan Ford Mazda venture
will split into two by the end of the year,
with equal inheritance and the Mazda
portion relocating to Nanjing. Manufacture and Export of cars from China 67,500 vehicles were exported from China last month according to a recently released report by the Chinese Association of Automobile Manufacturers. Chery headed the export list with 41,100 vehicles. 2000-2011 *Above Average Global Investment Rating*
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