FORD MOTOR COMPANY

Ford Motor Company

Ford Motor Company

Introduction

Ford Motor Company (Ford) is one of the largest automotive manufacturers in the world. It manufactures and distributes automobiles in over 200 markets across six continents. The company's automotive vehicle brands include Ford, Lincoln, Mazda, Mercury and Volvo. The company primarily operates in the US and Europe.

It is headquartered in Dearborn, Michigan, and employed 246,000 people as on December 2007. The company recorded revenues of $172,455 million during the fiscal year ended December 2007, an increase of 7.7% over 2006. The operating profit of the company was $5,631 million during fiscal year 2007, as compared to an operating loss of $8,190 million in 2006. The net loss was $2,723 million in 2007, as compared to a net loss of $12,613 million in 2006. (Iacocca 2009)

Ford Motor Company (Ford) is one of the Big Three manufacturers of cars and trucks in the US. The company manufactures and distributes automobiles in 200 markets across six continents. With 95 manufacturing facilities worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mazda, Mercury and Volvo. It also owns a 33.4% controlling stake in Mazda. The company conducts its business through two divisions: automotive and financial services. (Iacocca 2009)

Within these divisions, Ford's automotive business is further divided into reportable segments based upon its geographical and organizational structure. The automotive business division consists of the design, development, manufacture, sale and service of cars, trucks and service parts. Through this division, Ford produces a wide range of vehicles including cars for the small, medium, large and premium segments; trucks; buses/vans (including minivans); full-size pickups; sport utility vehicles and vehicles for the medium/heavy segments. The company's automotive business is organized into five segments: Ford North America, Ford South America, Ford Europe, Premier Automotive Group (PAG), and Ford Asia Pacific and Africa/Mazda. The Ford North America segment primarily includes the sale of Ford, Lincoln and Mercury brand vehicles and related service parts in North America (the US, Canada and Mexico), together with the associated costs to design, develop, manufacture and service these vehicles and parts. The Ford South America segment includes primarily the sale of Ford brand vehicles and related service parts in South America.

The Ford Europe segment includes primarily the sale of Ford brand vehicles and related service parts in Europe, Turkey, and Russia. The PAG* segment includes primarily the sale of PAG-brand vehicles (i.e., Volvo, Jaguar, and Land Rover) and related service parts throughout the world (including North America, South America, Europe, Asia Pacific and Africa). Ford Asia Pacific and Africa/Mazda segment primarily includes the sale of Ford-brand vehicles and related service parts in the Asia Pacific region and South Africa, and Ford's share of the results of Mazda Motor Corporation and certain of other Mazda-related investments. (Dempsey 2005) In March 2008, Ford sold Jaguar and Land Rover operations to Tata Motors. Beginning with the first quarter of 2008, Ford would reflect the sale by restructuring its operating segments by eliminating the PAG segment and replacing it with ...