Current Company Analysis on
Ford Motor Company
"Make Every Day Exciting"
Presented By :-
• Ford set out to build a car which
everyone could afford to buy .
• The attraction of the Model T was
that its price never increased.
• Costing $1200 in 1909, the price in
1928 was only $295.
• By 1928 Ford was producing more
than one car per minute.
• Ford has been in India since 1907, but received
government approval to forge a 50:50
partnership with Mahindra and Mahindra in
• In 1998, got the green signal to increase its stake
in the joint venture to 92.18 percent and the
company was re-christened as Ford India Pvt. Ltd.
• special cell called the "Environmental Management
• Apart from this , Ford India Ltd. has always been vital
in looking into the matters of social commitments.
• tries to employ locals in the manufacturing unit.
• Aggressively restructure to operate profitably at
the current demand and changing model mix.
• Accelerate development of new products their
customers want and value.
• Finance their plans and to improve the balance
• Work together efficiently as one team.
• An exciting and viable FORD, delivering profitable
growth for all .
• To sell all its car manufactured under its name by
satisfying all the needs and demand of its
• To gain operational efficiency in its work place
Ford India looking at new small car model.
Ford India sales up 19% in November in 2013.
Ford to inspect 386,000 cars for steering trouble.
India won’t get the new Ford Mustang.
Ford India sales up 51% in September by the
launch of Ford Ecosport.
Ford Motors Financial Performance
Factor Analysis for Ford Motors
Rotated Component Matrix
Spare Parts Cost
After Sales Service
2013 BUSINESS ENVIRONMENT
• 2013 global economic growth around 2% .
• Global industry sales expected to be about 84 million
units this year, up 3.8% compared with 2012 .
• U.S. economic growth projected in the 1.5% - 2%
range; short-term fiscal resolution pushes policy
uncertainty into First Quarter 2014.
• U.S. industry sales recovery supported by improving
housing sector and replacement demand.
• Incoming data suggest Euro Area economic and
industry conditions have begun to stabilize and
are consistent with a likely modest recovery .
• The European Central Bank stated interest
rates will stay low for an extended period .
Asia Pacific Africa
• China’s economic growth stabilizing in the 7.5%
• Challenges remain in India with economic
growth below trend in the near term .
COMPANY’S EQUITY & CREDIT RATING
• At September 30, 2013, Total equity attributable to Ford
Motor Company was $20.5 billion, an increase of about
$4.6 billion compared with December 31, 2012.
• The company’s short-term and long-term debt is rated
by four credit rating agencies designated as nationally
recognized statistical rating organizations (“NRSROs”)
by the U.S. Securities and Exchange Commission:
DBRS Limited (“DBRS”);
Fitch, Inc. (“Fitch”);
Moody’s Investors Service, Inc. (“Moody’s”); and
Standard & Poor’s Ratings Services, a division of
The McGraw-Hill Companies, Inc. (“S&P”).
On September 6, 2013, S&P raised the ratings of Ford and Ford Credit to BBB- from
BB+, both with a stable outlook.
DERIVATIVE FINANCIAL INSTRUMENTS
AND HEDGING ACTIVITIES
To manage various risks, the company has entered into
various derivative contracts:
• Foreign currency exchange contracts, including forwards
and options, that are used to manage foreign exchange
• Commodity contracts, including forwards and options,
that are used to manage commodity price risk.
• Interest rate contracts including swaps, caps, and floors
that are used to manage the effects of interest rate
• Cross-currency interest rate swap contracts that are
used to manage foreign currency and interest rate
exposures on foreign-denominated debt.
• Ford plans to launch 23 new cars, and 11000 new jobs in
• Ford plans to extend its momentum in North America,
which currently drives the vast majority of Ford's profits,
with 16 new vehicle launches .
• Ford aims to introduce two new versions of its highmileage EcoBoost engine family.
• Ford will invest $1.1 billion to retool and expand
its Kansas City assembly plant, which will also add more
than 2,000 jobs -- 1,000 of those jobs will be to help
support the expected strong demand for its next
• First new launch is FORD MUSTANG- OFFICIAL CAR of
2014 International CES.
• Ford Mustang remains to be sports car icon and most
recognizable car ever.
• Ford F150 Tremor is first ever eco-boost powered
sport truck that address the need of street truck.
• People looking forward for high performance V8
power and V6 fuel efficiency.
• FX Appearance Package with an eco-boost
engine and a launch-optimized 4.10 rear axle – the
shortest final drive ratio offered in an eco-boost F150 – helping provide customers with fast
•Narrow product portfolio.
•Less emphasis on compact cars.
•Less comfort, Suspension, hard
steering, Look, Design, Driving.
•Lacking in Services.
•Ford Fiesta: The main complaint from the driver`s
viewpoint is that there is no area for the left foot
and therefore one has to place it under the clutch
•Sec Gen Ford Focus: Lack of spack between head
room at back seat.
1> Creation of the fuel conducive cars.
2>Development of Hybrid vehicles.
3>Circumstances in India and China markets.
4>Increasing demand for duel fuel vehicles.
5>Capitalizing on the models exclusively
designed for different markets e.g. ford Ikon