FORD MOTOR COMPANY

Ford Motor Company is losing money in its North American operations; four options have been identified as a manager to provide a possible way out



Ford Motor Company Is Losing Money in Its North American Operations; Four Options Have Been Identified As a Manager to Provide a Possible Way Out

Introduction

The Ford Motor Company is an American multinational automobile producer which was founded by Henry Ford with some other associates on a vision to create affordable cars. The company is second largest in America and fifth largest company in the world in terms of revenue and sales. Ford Motors is facing loss in its North American Operations as the company is producing more cars than the company can sell, which creates a supply demand gap. (Bak 2003, Pp. 6-85) This gap is becoming the major cause of loss for the company and the company has to take decision to design its future strategies to fill the gap. To take company pass this situation, as a manager I have suggested four different options to consider.

The United Auto Workers (UAW) represents most of the company's production employees, and the contract terms over the years have been designed to provide significant long-term support to those employees. Generous conditions for retirement, benefits, and job protection, developed when the industry was doing well, now weigh down company operations. Another issue that has you concerned is the Premium Automotive Group (PAG), which makes the company's Aston-Martin, Jaguar, Land Rover, and Volvo brands. (Geisst 2006, Pp. 168-175) In this study all four options would be discussed and scrutinize to help company formulate a decision so that state of loss can be turned into state of profit. The four options are:

The company should close older plants in an effort to realign production and sales

Shift the focus of ...