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Ford Motor Company's Successful
       Internal Changes




            By: Geoff Porter
Management
President and CEO since 2006, Alan Mulally.
  Sound financial planning.
      Borrowed $23.6 billion from creditors prior to recession.
  Outsider from Boeing.
      Fresh perspective on Ford's plagued, deep-rooted
        organizational culture.
  Induced a top-down change throughout the company.
Cost-cutting

Eliminating 10% of salaried jobs.
Labour relations.
   Agreements with UAW.
      Hourly wages went from $76 to $55/hour.
      Half of the Retiree Medical Benefits Trust would be funded with
       Ford Stock (cash payments previously).
Consolidating the Ford brand.
   Selling and discontinuing non-profitable brands.
      Aston Martin, Jaguar, Land Rover, Volvo, Mercury, Lincoln.
Responsiveness
Redesigning it's North American product-line.
   Discontinuing large inefficient trucks, and SUVs.
   Introducing car models from EU and Asia to NA.
      Ford Fiesta
   Investing heavily into R&D of new technologies.
      EcoBoost, SYNC, BLIS, Hybrid
References
Carney, D. (2008). Ford better positioned to ride out recession. Autos on
  msnbc.com. Retrieved on April 17, 2012, from
  http://www.msnbc.msn.com/id/27723139/ns/business-autos/t/ford-better-pos
Kiley, D. (2009). Alan Mulally: The outsider at ford. Bloomberg
   businessweek. Retrieved on April 17, 2012, from
   http://www.businessweek.com/magazine/content/09_11/b4123038630999.ht
Alan Mulally. (2012). Wikipedia. Retrieved on April 18, 2012, from
   http://en.wikipedia.org/wiki/Alan_Mulally#cite_note-Fortune-20090511-13

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Ford

  • 1. Ford Motor Company's Successful Internal Changes By: Geoff Porter
  • 2. Management President and CEO since 2006, Alan Mulally. Sound financial planning. Borrowed $23.6 billion from creditors prior to recession. Outsider from Boeing. Fresh perspective on Ford's plagued, deep-rooted organizational culture. Induced a top-down change throughout the company.
  • 3. Cost-cutting Eliminating 10% of salaried jobs. Labour relations. Agreements with UAW. Hourly wages went from $76 to $55/hour. Half of the Retiree Medical Benefits Trust would be funded with Ford Stock (cash payments previously). Consolidating the Ford brand. Selling and discontinuing non-profitable brands. Aston Martin, Jaguar, Land Rover, Volvo, Mercury, Lincoln.
  • 4. Responsiveness Redesigning it's North American product-line. Discontinuing large inefficient trucks, and SUVs. Introducing car models from EU and Asia to NA. Ford Fiesta Investing heavily into R&D of new technologies. EcoBoost, SYNC, BLIS, Hybrid
  • 5. References Carney, D. (2008). Ford better positioned to ride out recession. Autos on msnbc.com. Retrieved on April 17, 2012, from http://www.msnbc.msn.com/id/27723139/ns/business-autos/t/ford-better-pos Kiley, D. (2009). Alan Mulally: The outsider at ford. Bloomberg businessweek. Retrieved on April 17, 2012, from http://www.businessweek.com/magazine/content/09_11/b4123038630999.ht Alan Mulally. (2012). Wikipedia. Retrieved on April 18, 2012, from http://en.wikipedia.org/wiki/Alan_Mulally#cite_note-Fortune-20090511-13