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  1. 1. Current Company Analysis on Ford Motor Company "Make Every Day Exciting" Presented By :- Devyani Vashisht Pooja Kadam Sneha Drolia Tushar Nijhawan Anshu Raj Rudhir Kakoti Renu Yadav Krunal Thakkar Nishit Rastogi
  2. 2. Ford’s History • 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.
  3. 3. Evolution of Ford’s Logo
  4. 4. 1929 model AA 1931 model Tudor Sedan 1928 model A New ford fiesta Ford fiesta 1946 ford sedan Ford Ikon Endeavour
  6. 6. • Ford has been in India since 1907, but received government approval to forge a 50:50 partnership with Mahindra and Mahindra in 1995. • 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.
  7. 7. • special cell called the "Environmental Management system” • 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.
  8. 8. 10 March 2014
  9. 9. • 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 sheet. • Work together efficiently as one team.
  10. 10. • 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 customers. • To gain operational efficiency in its work place
  11. 11. CURRENT AFFAIRS • • • • • 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.
  12. 12. Last 5 Year Analysis
  13. 13. Ford Motors Financial Performance 70000 60000 50000 40000 NET SALES(cr) NET PROFIT(cr) 30000 RoNW 20000 10000 0 FY08 FY09 FY10 FY11 FY12
  14. 14. Important Ratios 3 2.5 2 D/E ratio 1.5 Current Ratio 1 Fixed Assets 0.5 Fixed Assets Current Ratio D/E ratio 0 FY08 FY09 FY10 FY11 FY12
  15. 15. Factor Analysis for Ford Motors Rotated Component Matrix Components Service User Friendly Mileage Spare Parts Cost Resale Value Brand Value After Sales Service Safety Performance Brand Value .888 .777 .783 .924 .847 .913
  16. 16. Current Analysis
  18. 18. 2013 BUSINESS ENVIRONMENT OVERVIEW Global • 2013 global economic growth around 2% . • Global industry sales expected to be about 84 million units this year, up 3.8% compared with 2012 . Americas • 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.
  19. 19. Europe • 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% range . • Challenges remain in India with economic growth below trend in the near term .
  20. 20. BALANCE SHEET AS OF 30-09-2013
  21. 21. 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.
  22. 22. 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 exposure. • 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 fluctuations and • Cross-currency interest rate swap contracts that are used to manage foreign currency and interest rate exposures on foreign-denominated debt.
  23. 23. FORD PLANS • Ford plans to launch 23 new cars, and 11000 new jobs in 2014. • 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 generation F-150.
  24. 24. • 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 acceleration.
  25. 25. Shortcomings •Narrow product portfolio. •Less emphasis on compact cars. •Less comfort, Suspension, hard steering, Look, Design, Driving. •Lacking in Services. •Uncomfortable Seats.
  26. 26. Example : •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 pedal. •Sec Gen Ford Focus: Lack of spack between head room at back seat. •Maintanence Cost. •Image.
  27. 27. Future Endeavours: • • • • • 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 for India.
  28. 28. Thank you
  29. 29. Questions??