Ford Motor Company
Ford Motor Company Type Public company Traded as NYSE: F Industry Automotive Founded June 16, 1903 Founder(s) Henry Ford Headquarters Dearborn, Michigan, U.S. Area served Worldwide Key people William C. Ford, Jr.
Alan R. Mulally
(President & CEO)
Services Automotive finance
Revenue US$128.954 billion (2010) Operating income US$7.149 billion (2010) Net income US$6.561 billion (2010) Total assets US$165.693 billion (2010) Total equity US$-642 million (2010) Employees 164,000 (2010) Divisions Ford
Subsidiaries Automotive Components Holdings
Ford of Europe
Ford do Brasil
Ford Motor Company (NYSE: F) is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK. Ford's former UK subsidiaries Jaguar and Land Rover were sold to Tata Motors of India in March 2008. In 2010 Ford sold Volvo to Geely Automobile. Ford discontinued the Mercury brand after the 2011 model year.
Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce using elaborately engineered manufacturing sequences typified by moving assembly lines. Henry Ford's methods came to be known around the world as Fordism by 1914.
Ford is the second largest automaker in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010. At the end of 2010, Ford was the fifth largest automaker in Europe. Ford is the eighth-ranked overall American-based company in the 2010 Fortune 500 list, based on global revenues in 2009 of $118.3 billion. In 2008, Ford produced 5.532 million automobiles and employed about 213,000 employees at around 90 plants and facilities worldwide. During the automotive crisis, Ford's worldwide unit volume dropped to 4.817 million in 2009. In 2010, Ford earned a net profit of $6.6 billion and reduced its debt from $33.6 billion to $14.5 billion lowering interest payments by $1 billion following its 2009 net profit of $2.7 billion. Starting in 2007, Ford received more initial quality survey awards from J. D. Power and Associates than any other automaker. Five of Ford's vehicles ranked at the top of their categories and fourteen vehicles ranked in the top three.
- 1 Corporate governance
- 2 Market developments
- 3 Brands
- 4 Global markets
- 5 Environmental initiatives
- 6 Auto racing
- 7 Ford trucks
- 8 Bus products
- 9 Ford tractors
- 10 History
- 11 See also
- 12 Notes
- 13 References and further reading
- 14 External links
Members of the board as of early 2011 are: Richard A. Gephardt, Stephen Butler, Ellen Marram, Kimberly Casiano, Alan Mulally (President and CEO), Edsel Ford II, Homer Neal, William Clay Ford Jr. (Executive Chairman), Jorma Ollila, Irvine Hockaday Jr., John L. Thornton, and William Clay Ford, Sr. (Director Emeritus).
The main corporate officers are: Lewis Booth (Executive Vice President, Chairman (PAG) and Ford of Europe), Mark Fields (Executive Vice President, President of The Americas), Donat Leclair (Executive Vice President and CFO), Mark A. Schulz (Executive Vice President, President of International Operations), and Michael E. Bannister (Group Vice President; Chairman & CEO Ford Motor Credit). Paul Mascarenas (Vice President of Engineering, The Americas Product Development)
During the mid to late 1990s, Ford sold large numbers of vehicles, in a booming American economy with soaring stock market and low fuel prices. With the dawn of the new century, legacy healthcare costs, higher fuel prices, and a faltering economy led to falling market shares, declining sales, and sliding profit margins. Most of the corporate profits came from financing consumer automobile loans through Ford Motor Credit Company.
By 2005, corporate bond rating agencies had downgraded the bonds of both Ford and GM to junk status, citing high U.S. health care costs for an aging workforce, soaring gasoline prices, eroding market share, and dependence on declining SUV sales for revenues. Profit margins decreased on large vehicles due to increased "incentives" (in the form of rebates or low interest financing) to offset declining demand.
In the face of demand for higher fuel efficiency and falling sales of minivans, Ford moved to introduce a range of new vehicles, including "Crossover SUVs" built on unibody car platforms, rather than more body-on-frame chassis. In developing the hybrid electric powertrain technologies for the Ford Escape Hybrid SUV, Ford licensed similar Toyota hybrid technologies to avoid patent infringements. Ford announced that it will team up with electricity supply company Southern California Edison (SCE) to examine the future of plug-in hybrids in terms of how home and vehicle energy systems will work with the electrical grid. Under the multi-million-dollar, multi-year project, Ford will convert a demonstration fleet of Ford Escape Hybrids into plug-in hybrids, and SCE will evaluate how the vehicles might interact with the home and the utility's electrical grid. Some of the vehicles will be evaluated "in typical customer settings", according to Ford.
In December 2006, the company raised its borrowing capacity to about $25 billion, placing substantially all corporate assets as collateral to secure the line of credit. Chairman Bill Ford has stated that "bankruptcy is not an option". In order to control its skyrocketing labor costs (the most expensive in the world), the company and the United Auto Workers, representing approximately 46,000 hourly workers in North America, agreed to a historic contract settlement in November 2007 giving the company a substantial break in terms of its ongoing retiree health care costs and other economic issues. The agreement includes the establishment of a company-funded, independently run Voluntary Employee Beneficiary Association (VEBA) trust to shift the burden of retiree health care from the company's books, thereby improving its balance sheet. This arrangement took effect on January 1, 2010. As a sign of its currently strong cash position, Ford contributed its entire current liability (estimated at approximately US$5.5 Billion as of December 31, 2009) to the VEBA in cash, and also pre-paid US$500 Million of its future liabilities to the fund. The agreement also gives hourly workers the job security they were seeking by having the company commit to substantial investments in most of its factories.
The automaker reported the largest annual loss in company history in 2006 of $12.7 billion, and estimated that it would not return to profitability until 2009. However, Ford surprised Wall Street in the second quarter of 2007 by posting a $750 million profit. Despite the gains, the company finished the year with a $2.7 billion loss, largely attributed to finance restructuring at Volvo.
In January 2008, Ford launched a website listing the ten Built Ford Tough rules as well as a series of webisodes that parodied the TV show COPS.
During November 2008, Ford, together with Chrysler and General Motors, sought financial aid at Congressional hearings in Washington, D.C. in the face of worsening conditions caused by the automotive industry crisis. The three companies presented action plans for the sustainability of the industry. The Detroit based automakers were unsuccessful at obtaining assistance through Congressional legislation. GM and Chrysler later received assistance through the Executive Branch from the T.A.R.P. funding provisions. On December 19, the cost of credit default swaps to insure the debt of Ford was 68 percent the sum insured for five years in addition to annual payments of 5 percent. That means it costs $6.8 million paid upfront to insure $10 million in debt, in addition to payments of $500,000 per year. In January 2009, Ford announced a $14.6 billion loss in the preceding year, making 2008 its worst year in history. Still, the company claimed to have sufficient liquidity to fund its business plans and thus, did not ask for government aid. Through April 2009, Ford's strategy of debt for equity exchanges, erased $9.9 B in liabilities (28% of its total), in order to leverage its cash position. These actions yielded Ford a $2.7 billion profit in fiscal year 2009, the company's first full-year profit in four years.
"The Way Forward"
In the latter half of 2005, Chairman Bill Ford asked newly appointed Ford Americas Division President Mark Fields to develop a plan to return the company to profitability. Fields previewed the Plan, dubbed The Way Forward, at the December 7, 2005 board meeting of the company; and it was unveiled to the public on January 23, 2006. "The Way Forward" includes resizing the company to match current market realities, dropping some unprofitable and inefficient models, consolidating production lines, and shutting fourteen factories and cutting 30,000 jobs. These cutbacks are consistent with Ford's roughly 25% decline in U.S. automotive market share since the mid-late 1990s.
In 2010, Ford earned a net profit of $6.6 billion and reduced its debt from $33.6 billion to $14.5 billion lowering interest payments by $1 billion following its 2009 net profit of $2.7 billion. In the U.S., the F-Series is the best selling vehicle for 2010. Ford sold 528,349 F-Series trucks during the year, a 27.7% increase over 2009, out of a total sales of 1.9 million vehicles, or every one out of four vehicles Ford sold. Trucks sales accounts for a big slice of Ford's profits, according to USA Today. Ford's realignment also includes the sale of its wholly owned subsidiary, Hertz Rent-a-Car to a private equity group for $15 billion in cash and debt acquisition. The sale was completed on December 22, 2005. A 50–50 joint venture with Mahindra & Mahindra Limited of India, called Mahindra Ford India, Limited (MIFL), ended with Ford buying out Mahindra's remaining stake in the company in 2005. Ford had previously upped its stake to 72% in 1998.
Chairman and Chief Executive Officer Ford also became President of the company in April 2006, with the retirement of Jim Padilla. Five months later, in September, he stepped down as President and CEO, and naming Alan Mulally as his successor. Bill Ford continues as Executive Chairman, along with an executive operating committee made up of Mulally, Mark Schulz, Lewis Booth, Don Leclair, and Mark Fields.
Ford Motor Company manufactures automobiles under its own name and as Lincoln in the United States. In 1958, Ford introduced a new brand, the Edsel, but poor sales led to its discontinuation in 1960. In 1985, the Merkur brand was introduced to market Fords from Europe in the United States; it met a similar fate in 1989. The Mercury brand was also introduced by Ford in 1939 but poor sales also led to its discontinuation in 2011.
Ford has major manufacturing operations in Canada, Mexico, the United Kingdom, Germany, Turkey, Brazil, Argentina, Australia, the People's Republic of China, and several other countries, including South Africa where, following divestment during apartheid, it once again has a wholly owned subsidiary. Ford also has a cooperative agreement with Russian automaker GAZ.
Ford acquired British sports car maker Aston Martin in 1989, but sold it on March 12, 2007, retaining a small minority stake, and bought Volvo Cars of Sweden in 1999, selling it to Zhejiang Geely Holding Group in 2010. In November 2008 it reduced its 33.4% controlling interest in Mazda of Japan, to a 13.4% non-controlling interest. On November 18, 2010, Ford reduced their stake further to just 3%, citing the reduction of ownership would allow greater flexibility to pursue growth in emerging markets. Ford and Mazda remain strategic partners through joint ventures and exchanges of technological information. It shares an American joint venture plant in Flat Rock, Michigan called Auto Alliance with Mazda. It has spun off its parts division under the name Visteon.
Ford's FoMoCo parts division sells aftermarket parts under the Motorcraft brand name.
Ford's non-manufacturing operations include organizations such as automotive finance operation Ford Motor Credit Company. Ford also sponsors numerous events and sports facilities around the US, most notably Ford Center (now Chesapeake Energy Arena) in downtown Oklahoma City and Ford Field in downtown Detroit.
Overall the Ford Motor Company controls the Ford and Lincoln car brands.
Brands Years Used Markets Ford 1903–present Global Lincoln 1922–present North America, Middle East Mercury 1939–2011 North America
Initially, Ford Motor Company models sold outside the U.S. were essentially versions of those sold on the home market, but later on, models specific to Europe were developed and sold. Attempts to globalize the model line have often failed, with Europe's Ford Mondeo selling poorly in the United States as the Ford Contour, while U.S. models such as the Ford Taurus have fared poorly in Japan and Australia, even when produced in right hand drive. The small European model Ka, a hit in its home market, did not catch on in Japan, as it was not available as an automatic. The Mondeo was dropped by Ford Australia, because the segment of the market in which it competes had been in steady decline, with buyers preferring the larger local model, the Falcon. One recent exception is the European model of the Focus, which has sold strongly on both sides of the Atlantic.
Calendar Year American sales 1999 4,163,369 2000 4,202,820 2001 3,971,364 2002 3,623,709 2003 3,483,719 2004 3,331,676 2005 3,153,875 2006 2,901,090 2007 2,507,366 2008 1,988,376 2009 1,620,888 2010 1,935,462
In the first five months of 2010, auto sales in the U.S. rose to 4.6 million cars and light trucks, an increase of 17% from a year earlier. The rise was mainly caused by the return of commercial customers that had all but stopped buying in 2009 during the recession. Sales to individual customers at dealerships have increased 13%, while fleet sales have jumped 32%. Ford reported that 37% of its sales in May came from fleet sales when it announced its sales for the month increased 23%. In the first seven months of 2010, vehicle sales of Ford increased 24%, including retail and fleet sales. Fleet sales of Ford for the same period rose 35% to 386,000 units while retail sales increase 19%. Fleet sales account for 39 percent of Chrysler's sales and 31 percent for GM's.
At first, Ford in Germany and Ford in Britain built different models from one another until the late 1960s, with the Ford Escort and then the Ford Capri being common to both companies. Later on, the Ford Taunus and Ford Cortina became identical, produced in left hand drive and right hand drive respectively. Rationalisation of model ranges meant that production of many models in the UK switched to elsewhere in Europe, including Belgium and Spain as well as Germany. The Ford Sierra replaced the Taunus and Cortina in 1982, drawing criticism for its radical aerodynamic styling, which was soon given nicknames such as "Jellymould" and "The Salesman's Spaceship."
Increasingly, the Ford Motor Company has looked to Ford of Europe for its "world cars", such as the Mondeo, Focus, and Fiesta, although sales of European-sourced Fords in the U.S. have been disappointing. The Focus has been one exception to this, which has become America's best selling compact car since its launch in 2000.
In February 2002, Ford ended car production in the UK. It was the first time in 90 years that Ford cars had not been made in Britain, although production of the Transit van continues at the company's Southampton facility, engines at Bridgend and Dagenham, and transmissions at Halewood. Development of European Ford is broadly split between Dunton in Essex (powertrain, Fiesta/Ka, and commercial vehicles) and Cologne (body, chassis, electrical, Focus, Mondeo) in Germany. Ford also produced the Thames range of commercial vehicles, although the use of this brand name was discontinued circa 1965. Elsewhere in continental Europe, Ford assembles the Mondeo range in Genk (Belgium), Fiesta in Valencia (Spain) and Cologne (Germany), Ka in Valencia, and Focus in Valencia, Saarlouis (Germany) and Vsevolozhsk (Russia). Transit production is in Kocaeli (Turkey), Southampton (UK), and Transit Connect in Kocaeli.
Ford also owns a joint-venture production plant in Turkey. Ford-Otosan, established in the 1970s, manufactures the Transit Connect compact panel van as well as the "Jumbo" and long-wheelbase versions of the full-size Transit. This new production facility was set up near Kocaeli in 2002, and its opening marked the end of Transit assembly in Genk.
Another joint venture plant near Setúbal in Portugal, set up in collaboration with Volkswagen, formerly assembled the Galaxy people-carrier as well as its sister ships, the VW Sharan and SEAT Alhambra. With the introduction of the third generation of the Galaxy, Ford has moved the production of the people-carrier to the Genk plant, with Volkswagen taking over sole ownership of the Setúbal facility.
In 2008, Ford acquired a majority stake in Automobile Craiova, Romania. Starting 2009, Ford Transit Connect will be Ford's first model produced in Craiova, followed, in 2010, by low-capacity car engines and a new small class car.
Ford Europe has broken new ground with a number of relatively futuristic car launches over the last 50 years.
Its 1959 Anglia two-door saloon was one of the most quirky-looking small family cars in Europe at the time of its launch, but buyers soon became accustomed to its looks and it was hugely popular with British buyers in particular. It was still selling well when replaced by the more practical Escort in 1967.
The third incarnation of the Ford Escort was launched in 1980 and marked the company's move from rear-wheel drive saloons to front-wheel drive hatchbacks in the small family car sector.
The fourth generation Escort was produced from 1990 until 2000, although its successor – the Focus – had been on sale since 1998. On its launch, the Focus was arguably the most dramatic-looking and fine-handling small family cars on sale, and sold in huge volumes right up to the launch of the next generation Focus at the end of 2004.
The 1982 Ford Sierra – replacement for the long-running and massively popular Cortina and Taunus models – was a style-setter at the time of its launch. Its ultramodern aerodynamic design was a world away from a boxy, sharp-edged Cortina, and it was massively popular just about everywhere it was sold. A series of updates kept it looking relatively fresh until it was replaced by the front-wheel drive Mondeo at the start of 1993.
The rise in popularity of small cars during the 1970s saw Ford enter the mini-car market in 1976 with its Fiesta hatchback. Most of its production was concentrated at Valencia in Spain, and the Fiesta sold in huge figures from the very start. An update in 1983 and the launch of an all-new model in 1989 strengthened its position in the small car market.
In Australia and New Zealand, the popular Ford Falcon has long been considered the average family car and is considerably larger than the Mondeo, Ford's largest car sold in Europe. Between 1960 and 1972, the Falcon was based on a U.S. model of the same name, but since then has been entirely designed and manufactured in Australia, occasionlly being manufactured in New Zealand. Like its General Motors rival, the Holden Commodore, the Falcon uses a rear wheel drive layout. High performance variants of the Falcon running locally built engines produce up to 362 hp (270 kW). A ute (short for "utility", known in the US as pickup truck) version is also available with the same range of drivetrains. In addition, Ford Australia sells highly tuned limited-production Falcon sedans and utes through its performance car division, Ford Performance Vehicles.
In Australia, the Commodore and Falcon have traditionally outsold all other cars and comprise over 20% of the new car market. In New Zealand, Ford was second in market share in the first eight months of 2006 with 14.4 per cent. More recently Ford has axed its Falcon-based LWB variant of its lineup – the Fairlane and LTD ranges, and announced that their Geelong engine manufacturing plant may be shut down from 2013. They have also announced local manufacturing of the Focus small car starting from 2011.
However, with the acquisition of a stake in Japanese manufacturer Mazda in 1979, Ford began selling Mazda's Familia and Capella (also known as the 323 and 626) as the Ford Laser and Telstar, replacing the European-sourced Escort and Cortina.
In Australia, the Laser was one of Ford Australia's most successful models, and was manufactured in Ford's Homebush plant from 1981 until the plant's closure in September 1994. It outsold the Mazda 323, despite being almost identical to it, due to the fact the Laser was manufactured in Australia and Ford was perceived as a local brand.
In New Zealand, the Ford Laser and Telstar were assembled alongside the Mazda 323 and 626 until 1997, at the Vehicle Assemblers of New Zealand (VANZ) plant in Wiri, Auckland. The Sierra wagon was also assembled in New Zealand, owing to the popularity of station wagons in that market.
Through its relationship with Mazda, Ford also acquired a stake in South Korean manufacturer Kia, which built the (Mazda-based) Ford Festiva from 1988–1993, and the Ford Aspire from 1994–1997 for export to the United States, but later sold their interest to Hyundai (which also manufactured the Ford Cortina until the 1980s). Kia continued to market the Aspire as the Kia Avella, later replaced by the Rio and once again sold in the US.
Ford's presence in Asia has traditionally been much smaller, confined to Malaysia, Singapore, Hong Kong, the Philippines, and Taiwan, where Ford has had a joint venture with Lio Ho since the 1970s. Ford began assembly of cars in Thailand in 1960, but withdrew from the country in 1976, and did not return until 1995, when it formed a joint venture with Mazda called Auto Alliance.
Ford India began production in 1998 with its Ford Escort model, which was later replaced by locally produced Ford Ikon in 2001. It has since added Fusion, Fiesta, Mondeo and Endeavour to its product line.
On March 9, 2010, Ford Motor Co. launched its first made-for-India compact car. Starting at 349,900 ($7,690), the Figo is Ford's first car designed and priced for the mass Indian market.
In South America, Ford has had to face protectionist government measures in each country, with the result that it built different models in different countries, without particular regard to rationalization or economy of scale inherent to producing and sharing similar vehicles between the nations. In many cases, new vehicles in a country were based on those of the other manufacturers it had entered into production agreements with, or whose factories it had acquired. For example, the Corcel and Del Rey in Brazil were originally based on Renault vehicles.
In 1987, Ford of Brasil and Ford of Argentina merged its operations with those of Volkswagen to form a company called Autolatina, with which it shared models. Sales figures and profitability were disappointing, and Autolatina was dissolved in 1995. With the advent of Mercosur, the regional common market, Ford was finally able to rationalize its product line-ups in those countries. Consequently, the Ford Fiesta and Ford EcoSport are only built in Brazil, and the Ford Focus only built in Argentina, with each plant exporting in large volumes to the neighboring countries. Models like the Ford Mondeo from Europe could now be imported completely built up. Ford of Brazil produces a pick-up truck version of the Fiesta, the Courier, which is also produced in South Africa as the Ford Bantam in right hand drive versions.
Africa and Middle East
In Africa, Ford's market presence has traditionally been strongest in South Africa and neighbouring countries, with only trucks being sold elsewhere on the continent. Ford in South Africa began by importing kits from Canada to be assembled at its Port Elizabeth facility. Later Ford sourced its models from the UK and Australia, with local versions of the Ford Cortina including the XR6, with a 3.0 V6 engine, and a Cortina-based 'bakkie' or pick-up, which was exported to the UK. In the mid-1980s Ford merged with a rival company, owned by Anglo American, to form the South African Motor Corporation (Samcor).
Following international condemnation of apartheid, Ford divested from South Africa in 1988, and sold its stake in Samcor, although it licensed the use of its brand name to the company. Samcor began to assemble Mazdas as well, which affected its product line-up, and saw the European Fords like the Escort and Sierra replaced by the Mazda-based Laser and Telstar. Ford bought a 45 per cent stake in Samcor following the demise of apartheid in 1994, and this later became, once again, a wholly owned subsidiary, the Ford Motor Company of Southern Africa. Ford now sells a local sedan version of the Fiesta (also built in India and Mexico), and the Focus. The Falcon model from Australia was also sold in South Africa, but was dropped in 2003, while the Mondeo, after briefly being assembled locally, was dropped in 2005.
Ford's market presence in the Middle East has traditionally been even smaller, partly due to previous Arab boycotts of companies dealing with Israel. Ford and Lincoln vehicles are currently marketed in ten countries in the region. Saudi Arabia, Kuwait, and the UAE are the biggest markets. Ford also established itself in Egypt in 1926, but faced an uphill battle during the 1950s due to the hostile nationalist business environment. Ford's distributor in Saudi Arabia announced in February 2003 that it had sold 100,000 Ford and Lincoln vehicles since commencing sales in November 1986. Half of the Ford/Lincoln vehicles sold in that country were Ford Crown Victorias. In 2004, Ford sold 30,000 units in the region, falling far short of General Motors' 88,852 units and Nissan Motors' 75,000 units.
Ford announced in late 2008 July that it will bring six of its more fuel-efficient European models to the U.S.
Compressed natural gas
The alternative fossil fuel vehicles, such as some versions of the Crown Victoria especially in fleet and taxi service, operate on compressed natural gas—or CNG. Some CNG vehicles have dual fuel tanks – one for gasoline, the other for CNG – the same engine can operate on either fuel via a selector switch.
Flexible fuel vehicles
Flexible fuel vehicles are designed to operate smoothly using a wide range of available ethanol fuel mixtures—from pure gasoline, to bioethanol-gasoline blends such as E85 (85% ethanol and 15% gasoline) or E100 (neat hydrous ethanol) in Brazil. Part of the challenge of successful marketing alternative and flexible fuel vehicles in the U.S., is the general lack of establishment of sufficient fueling stations, which would be essential for these vehicles to be attractive to a wide range of consumers. Significant efforts to ramp up production and distribution of E85 fuels are underway and expanding.
Ford is also planning to produce 250,000 E85-capable vehicles a year in the US, adding to some 1.6 million already sold in the last 10 years.
Current Ford E85 Flexible Fuel Vehicles sold in North America and Europe are:
- Ford F-150
- Ford Crown Victoria
- Ford Focus
- Ford C-MAX
- Ford Mondeo
- Ford S-MAX
- Ford Galaxy
- Ford Taurus
- Ford Ranger
- Ford Explorer
- Ford Expedition and EL/Max
- Mercury Grand Marquis
- Lincoln Town Car
- Ford Fusion
Current Ford E100 Flex sold in the Brazilian market are:
Ford Motor Co. expects electric vehicles will represent a "major portion" of its lineup a decade from now as the automaker breaks away from a recent reliance on pickup trucks and SUVs. The stakes are high because Ford's stepped-up investment is coming at a time when the U.S. government is demanding steep increases in fuel economy and has put money forward to help automakers adopt new fuel-saving technologies.
Ford Motor Co. will partner with Coulomb Technologies to provide nearly 5,000 free in-home charging stations for some of the automaker's first electric vehicle customers, under the Ford Blue Oval ChargePoint Program.
Hybrid electric vehicles
In 2004 both Ford and Toyota agreed on a patent sharing accord which granted Ford access to certain hybrid technology patented by Toyota, in exchange Ford licensed Toyota some of their own patents.
Ford did improve fuel efficiency during 2005, with the introduction of the Hybrid-Electric Escape. With this vehicle, Ford was third to the automotive market with a hybrid electric vehicle and the first hybrid electric SUV to market. This was also the first hybrid electric vehicle with a flexible fuel capability to run on E85. The Escape's platform mate Mercury Mariner was also available with the hybrid-electric system in the 2006 model year—a full year ahead of schedule. The similar Mazda Tribute will also receive a hybrid-electric powertrain option, along with many other vehicles in the Ford vehicle line.
In 2005 Ford announced its goal to make 250,000 hybrids a year by 2010, but by mid-2006 announced that it would not meet that goal, due to excessively high costs and the lack of sufficient supplies of the hybrid-electric batteries and drivetrain system components. Instead, Ford has committed to accelerating development of next-generation hybrid-electric power plants in Britain, in collaboration with Volvo. This engineering study is expected to yield more than 100 new hybrid-electric vehicle models and derivatives. There are also plans for hybrid versions of the Ford Edge and Lincoln MKX.
Ford announced on 2007-07-09 that it will team up with Southern California Edison (SCE) to examine the future of plug-in hybrids in terms of how home and vehicle energy systems will work with the electrical grid. Under the multi-million-dollar, multi-year project, Ford will convert a demonstration fleet of Ford Escape Hybrids into plug-in hybrids, and SCE will evaluate how the vehicles might interact with the home and the utility's electrical grid. Some of the vehicles will be evaluated "in typical customer settings", according to Ford.
On June 12, 2008 USDOE expanded its own fleet of alternative fuel and advanced technology vehicles with the addition of a Ford Escape Plug-In Hybrid Flex-Fuel Vehicle. The vehicle is equipped with a 10-kilowatt (13 hp) lithium-ion battery supplied by Johnson Controls-Saft that stores enough electric energy to drive up to 30 miles (48 km) at speeds of up to 40 mph (64 km/h).
Current and planned Ford hybrid electric vehicles:
- 2004– Ford Escape Hybrid
- 2006– Mercury Mariner
- 2009– Ford Fusion Hybrid/Mercury Milan
- 2009/10– Ford Edge/Lincoln MKX
Ford ended the Think City experiment and ordered all the cars repossessed and destroyed, even as many of the people leasing them begged to be able to buy the cars from Ford. After outcry from the lessees and activists in the US and Norway, Ford returned the cars to Norway for sale.
Bill Ford was one of the first top industry executives to make regular use of an battery electric vehicle, a Ford Ranger EV, while the company contracted with the United States Postal Service to deliver electric postal vans based on the Ranger EV platform..Ford discontinued a line of electric Ranger pickup trucks and ordered them destroyed, though it reversed in January 2005, after environmentalist protest.
The North American Focus EV is based on next generation Focus fuel vehicle, converted to an electric propulsion system as a Production EV by Magna International, and is planned to be launched in late 2011. Ford plans to have 10,000 Focus EVs on the road beginning in late 2011 in partnership with Magna International and it will be a global vehicle that will be sold in the three key markets of North America, Europe and Asia-Pacific. The Focus EV has a maximum range of about 160 kilometers or 100 miles, and a top speed of about 120+ kilometers or 75+ miles per hour.
- 2010 All-electric Transit Connect
- 2011 All-electric small car in late 2011 (Ford Focus EV).
- 2013 C-MAX Energi coming fall 2012
Ford battery electric vehicle (BEV) demonstrators are included in a British project that is part of the UK government's zero carbon vehicle fleet of Focus BEVs. The BEV demonstrator fleet is being developed partly with public funding from the government's Technology Strategy Board (TSB), which promotes innovative industry-led projects that reduce CO2 while benefiting the UK's transport system.
Ford also continues to study Fuel Cell-powered electric powertrains, and has demonstrated hydrogen-fueled internal combustion engine technologies, as well as developing the next-generation hybrid-electric systems. Compared with conventional vehicles, hybrid vehicles and/or fuel cell vehicles decrease air pollution emissions as well as sound levels, with favorable impacts upon respiratory health and decrease of noise health effects.
Ford has launched the production of hydrogen-powered shuttle buses, using hydrogen instead of gasoline in a standard internal combustion engine, for use at airports and convention centers. At the 2006 Greater Los Angeles Auto Show, Ford showcased a hydrogen fuel cell version of its Explorer SUV. The Fuel cell Explorer has a combined output of 174 hp (130 kW). It has a large hydrogen storage tank which is situated in the center of the car taking the original place of the conventional model's automatic transmission. The centered position of the tank assists the vehicle reach a notable range of 350 miles (563 km), the farthest for a fuel cell vehicle so far. The fuel cell Explorer the first in a series of prototypes partly funded by the United States Department of Energy to expand efforts to determine the feasibility of hydrogen- powered vehicles. The fuel cell Explorer is one of several vehicles with green technology being featured at the L.A. show, including the 2008 Ford Escape Hybrid, PZEV emissions compliant Fusion and Focus models and a 2008 Ford F-Series Super Duty outfitted with Ford's clean diesel technology.
Increased fuel efficiency
Ford Motor Company announced it will accelerate its plans to produce more fuel-efficient cars, changing both its North American manufacturing plans and its lineup of vehicles available in the United States. In terms of North American manufacturing, the company will convert three existing truck and sport utility vehicle (SUV) plants for small car production, with the first conversion starting in December at its Michigan Truck Plant. In addition, Ford's assembly plants near Mexico City, Mexico, and in Louisville, Kentucky, will convert from pickups and SUVs to small cars, including the Ford Fiesta, by 2011. Ford will also introduce to North America six of its European small vehicles, including two versions of the Ford Fiesta, by the end of 2012. And last but not least, Ford is stepping up its production of fuel-efficient "EcoBoost" V-6 and four-cylinder engines, while increasing its production of hybrid vehicles. See the Ford press release.
Ford of Europe developed the ECOnetic programme to address the market and legislative need for higher fuel efficiency and lower CO2 emissions. As opposed to the hybrid engine technology used in competitor products such as the Toyota Prius, ECOnetic improves existing technology. Using lower consuming Duratorq TDCi diesel engines, and based on a combination of improved aerodynamics, lower resistance and improved efficiency, the Ford Fiesta is currently the lowest emitting mass-produced car in Europe, while the 2012 Ford Focus ECOnetic will have better fuel consumption that the Prius or the Volkswagen Golf BlueMotion. ECOnetic is not presently planned to be sold in North Americam due to current perceived lower consumer demand.
Ford has challenged University teams to create a vehicle that is simple, durable, lightweight and come equipped with a base target price of only $7,000 The students from Aachen University created the "2015 Ford Model T".
In 2000, under the leadership of the current Ford chairman, William Clay Ford, the Company announced a planned 25 percent improvement in the average mileage of its light truck fleet – including its popular SUVs – to be completed by the 2005 calendar year. In 2003, Ford announced that competitive market conditions and technological and cost challenges would prevent the company from achieving this goal.
Researchers at the University of Massachusetts have, however, listed Ford as the seventh-worst corporate producer of air pollution, primarily because of the manganese compounds, 1,2,4-trimethylbenzene, and glycol ethers released from its casting, truck, and assembly plants. The United States Environmental Protection Agency has linked Ford to 54 Superfund toxic waste sites, twelve of which have been cleaned up and deleted from the list.
For the 2007 model year, Ford had thirteen U.S. models that achieve 30 miles per gallon or better (based on the highway fuel economy estimates of the EPA and several of Ford's vehicles were recognized in the EPA and Department of Energy Fuel Economy Guide for best-in-class fuel economy. Ford claimed to have eliminated nearly three million pounds of smog-forming emissions from their U.S. cars and light trucks over the 2004 to 2006 model years.
PC Power Management
On March 2010, Ford announced its PC Power Management system which it developed with NightWatchman software from 1E. The company is expected to save $1.2m on power cost and reduce carbon footprint by an estimated 16,000 to 25,000 metric tons annually when the system is fully implemented.
PC power management is being rolled out to all Ford computer users in US this month and it will be used in Ford operations around the world later in the year. Computers with this power profile enabled will monitor its usage patterns and decides when it can be turned off. PC user will be alerted of the approaching power down time and given the opportunity to delay it.
According to company reduction in carbon footprint and power cost will be achieved by developing 'Power Profiles' for every PC in the company.
Stock car racing
Ford is one of four manufacturers in NASCAR's three major series: Sprint Cup Series, Nationwide Series, and Camping World Truck Series. Major teams include Roush Fenway Racing and Yates Racing and Richard Petty Motorsports. Ford is represented by the mid-size Fusion in the Sprint Cup, the Mustang in the Nationwide Series, and by the F-150 in the Camping World Truck Series. Some of the most successful NASCAR Fords were the aerodynamic fastback Ford Torino, Ford Torino Talladega, Mercury Cyclone Spoiler II, and Mercury Montegos, and the aero-era Ford Thunderbirds. The Ford nameplate has won eight manufacturer's championships in Sprint Cup, while Mercury has won one. The Ford Fusion is also used in the ARCA Remax Series.
Ford was heavily involved in Formula One for many years, and supplied engines to a large number of teams from 1967 until 2004. These engines were designed and manufactured by Cosworth, the racing division that was owned by Ford from 1998 to 2004. Ford-badged engines won 176 Grands Prix between 1967 and 2003 for teams such as Team Lotus and McLaren. Ford entered Formula One as a constructor in 2000 under the Jaguar Racing name, after buying the Stewart Grand Prix team which had been its primary 'works' team in the series since 1997. Jaguar achieved little success in Formula One, and after a turbulent five seasons, Ford withdrew from the category after the 2004 season, selling both Jaguar Racing (which became Red Bull Racing) and Cosworth (to Gerald Forsythe and Kevin Kalkhoven).
Ford has a long history in rallying and has been active in the World Rally Championship since the beginning of the world championship, the 1973 season. Ford took the 1979 manufacturers' title with Hannu Mikkola, Björn Waldegård and Ari Vatanen driving the Ford Escort RS1800. In the Group B era, Ford achieved success with Ford RS200. Since the 1999 season, Ford has used various versions of the Ford Focus WRC to much success. In the 2006 season, BP-Ford World Rally Team secured Ford its second manufacturers' title, with the Focus RS WRC 06 built by M-Sport and driven by Flying Finns Marcus Grönholm and Mikko Hirvonen. Continuing with Grönholm and Hirvonen, Ford successfully defended the manufacturers' world championship in the 2007 season. Ford is the only manufacturer to score in the points for 92 consecutive races; since the 2002 season opener Monte Carlo Rally.
Ford sports cars have been visible in the world of sports car racing since 1964. Most notably the GT40 won the 24 Hours of Le Mans four times in the 1960s and is the only American car to ever win overall at this prestigious event. Ford also won the 1968 International Championship for Makes with the GT40, which still stands today as one of the all-time greatest racing cars. Swiss team Matech GT Racing, in collaboration with Ford Racing, opened a new chapter with the Ford GT, winning the Teams title in the 2008 FIA GT3 European Championship.
The Ford Mustang has arguably been Ford's most successful sports car. Jerry Titus won the 1965 SCCA Pro B National Championship with a Mustang and the model went on to earn Ford the SCCA Trans-Am Championship title in both 1966 and 1967. Ford won the Trans-Am Championship again in 1970 with Parnelli Jones and George Folmer driving Boss 302 Mustangs for Bud Moore Engineering. Ford took the 1985 and 1986 IMSA GTO Championship with Mustangs driven by John Jones and Scott Pruett before returning to Trans-Am glory with a championship in 1989 with Dorsey Schroeder. Ford dominated Trans-Am in the 1990s with Tommy Kendal winning championships in 1993, 1995, 1996, and 1997 with Paul Gentilozi adding yet another title in 1999. In 2005 the Ford Mustang FR500C took the championship in the Rolex Koni Challenge Series in its first year on the circuit. In 2007 Ford added a victory in the GT4 European Championship. 2008 was the first year of the Mustang Challenge for the Miller Cup, a series which pits a full field of identical factory built Ford Mustang race cars against each other. Also in 2008, Ford won the manufacturers championship in the Koni Challenge Series and HyperSport drivers Joe Foster and Steve Maxwell won the drivers title in a Mustang GT.
Ford has campaigned touring cars such as the Focus, Falcon, and Contour/Mondeo and the Sierra Cosworth in many different series throughout the years. Notably, Mondeo drivers finished 1,2,3 in the 2000 British Touring Car Championship and Falcon drivers placed 1,2,3 in the 2005 V8 Supercar Championship Series.
In the Indianapolis 500, Ford powered IndyCars won 17 times between 1965 and 1996. Ford has also branched out into drifting with the introduction of the new model Mustang. Most noticeable is the Turquoise and Blue Falken Tires Mustang driven by Vaughn Gittin Jr, A.K.A. "JR". with 750 RWHP (Rear Wheel Horsepower). In drag racing, John Force Racing drivers John Force, Tony Pedregon, and Robert Hight have piloted Ford Mustang Funny Cars to several NHRA titles in recent seasons. Teammates Tim Wilkerson and Bob Tasca III also drive Mustangs in Funny Car. Formula Ford, a formula for single-seater cars without wings and originally on road tires were conceived in 1966 in the UK as an entry-level formula for racing drivers. Many of today's racing drivers started their car racing careers in this category.
Ford has produced trucks since 1908. Countries where Ford commercial vehicles are or were made include Argentina, Australia, Brazil, Canada (badged Mercury too), France, Germany, India, Netherlands, Philippines, Spain (badged Ebro too), Turkey, UK (badged also Fordson and Thames) and USA.
From the 1940s to late 1970s Ford's Ford F-Series were used as the base for light trucks for the North American market.
Most of these ventures are now extinct. The European one that lasted longest was the lorries arm of Ford of Britain, which was eventually sold to Iveco group in 1986, and whose last significant models were the Transcontinental and the Cargo.
In the United States, Ford's heavy trucks division (Classes 7 and 8) was sold in 1997 to Freightliner Trucks, which rebranded the lineup as Sterling. Freightliner is in the process of discontinuing this line.
Line of heavy trucks made by Ford for the North American market:
- Ford F-650 – joint venture model from 2000 to present
- Ford L9000 – last model year 1999
- Ford LNT9000 – short nose tandem axle from 1970s to 1997
- Ford LT9000 – tandem axle with last model year 1997
- Ford FT900 – until 1998
- Ford LT8000 – last model year 1998
- Ford L7000 – last model year 1996
Ford continues to manufacture medium duty trucks under the F-650 and F-750 badges. In 2001, the company entered into a joint venture with Navistar International to produce medium duty commercial trucks. The first new model from the new corporation, known as Blue Diamond Truck Company LLC, was the 2006 model year LCF, the first Ford branded cab-over-engine design in the United States since Freightliner's acquisition of the Cargo in the mid-1990s.. The LCF was discontinued in 2009 and Ford's 2011 medium-duty commercial offerings are limited to the two F-Series.
In 1999 the end of the F800 meant Ford was not producing in any F-series heavy truck chassis.
In Europe, Ford manufactures the Ford Transit jumbo van which is classed as a Large Goods Vehicle and has a payload of up to 2,265 kg, there are options of a panel van, pickup or chassis cab. The Ford Transit is also available as a light van called the Ford Transit Connect and the Ford Ranger pickup is available.
Ford manufactured complete buses in the company's early history, but today the role of the company has changed to that of a second stage manufacturer. In North America, the E-Series is still used as a chassis for small school buses and the F-650 is used in commercial bus markets. In the 1980s and 1990s, the medium-duty B700 was a popular chassis used by school bus body manufacturers (Thomas Built, Ward, Blue Bird, etc...), but Ford lost its market share due to industry contraction and agreements between body manufacturers. Older bus models included:
Prior to 1939, For buses were based on truck bodies:
- Model B – 1930s
- Model T – 1920s
- F-105 school bus
During World War II Ford manufactured Ford Transit bus, a series of small transit buses with bodies built by second party:
- 09-B/19-B City transit bus – 1939–1941
- 19-B/29-B City transit bus – 1941–1942
- 49-B/79-B City transit bus – 1944–1947
- 69-B City transit bus – 1946–1947
- 29-B City transit bus – 1946–1947
- 72-T transit bus – 1944–1945
After 1946 the Transit City bus was sold as Universal Bus with the roof changed from fabric/wood to all metal:
- 79-B Universal transit bus – 1946–1947
Succeeding the Ford Transit bus was the Ford 8M buses:
- 8MB transit bus – with Wayne Works 1948–?
- B500 or B-series – 1950-1990s based on Ford F-series truck chassis used by school bus body manufacturers
In Europe, Ford manufactures the Ford Transit Minibus which is classed in Europe as a Passenger Carrying Vehicle and there are options of 12, 15 or 17 seaters. In the past European models included:
- D series buses (Australia)
The "Henry Ford and Son Company" began making Fordson tractors in Henry's hometown of Springwells (later part of Dearborn, Michigan from 1907 to 1928, from 1919 to 1932, at Cork, Ireland and 1933–1964 at Dagenham, England, later transferred to Basildon. They were also produced in Leningrad beginning in 1924.
In 1986, Ford expanded its tractor business when it purchased the Sperry-New Holland skid-steer loader and hay baler, hay tools and implement company from Sperry Corporation and formed Ford-New Holland which bought out Versatile tractors in 1988. This company was bought by Fiat in 1993 and the name changed from Ford New Holland to New Holland. New Holland is now part of CNH Global.
The Ford Motor Company was launched in a converted factory in 1903 with $28,000 in cash from twelve investors, most notably John and Horace Dodge (who would later found their own car company). Later Ford realized it would be better if he manufactured all of his company's automotive parts himself instead of using parts from aftermarket sources which lead to the production of the assembly line 1908. Henry's first attempt under his name was the Henry Ford Company on November 3, 1901, which became the Cadillac Motor Company on August 22, 1902. In 1908 Ford During its early years, the company produced just a few cars a day at its factory on Mack Avenue in Detroit, Michigan. Groups of two or three men worked on each car from components made to order by other companies. Henry Ford was 40 years old when he founded the Ford Motor Company, which would go on to become one of the world's largest and most profitable companies, as well as being one to survive the Great Depression. As one of the largest family-controlled companies in the world, the Ford Motor Company has been in continuous family control for over 100 years.
- Detroit Automobile Company
- Dodge v. Ford Motor Company
- Firestone and Ford tire controversy
- Ford F-Series
- Ford Mustang
- Ford Racing
- Ford V-8
- Fordson tractor
- The Henry Ford
- Henry Ford Company
- History of Ford Motor Company
- List of Ford vehicles
- List of Ford factories
- List of Ford engines
- List of Ford platforms
- List of Ford VIN codes
- List of CEOs of Ford Motor Company
- Pay on production
- Plug-in hybrid
- Smith Electric Vehicles
- Southern California Edison
- Soybean Car
- Special Vehicle Team (SVT)
- Special Vehicle Operations (SVO)
- United States Council for Automotive Research
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- ^ "INSPIRING INNOVATION: 100 YEARS LATER, GLOBAL STUDENTS CREATE 21ST CENTURY MODEL T CONCEPTS, Ford Motor Company Newsroom". Media.ford.com. October 1, 2008. http://media.ford.com/article_display.cfm?article_id=29155. Retrieved June 18, 2009.
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References and further reading
Ford Motor Company
- Bak, Richard. Henry and Edsel: The Creation of the Ford Empire (2003)
- Bardou; Jean-Pierre, Jean-Jacques Chanaron, Patrick Fridenson, and James M. Laux. The Automobile Revolution: The Impact of an Industry University of North Carolina Press, 1982
- Batchelor, Ray. Henry Ford: Mass Production, Modernism and Design Manchester U. Press, 1994
- Bonin, Huber et al. Ford, 1902–2003: The European History 2 vol Paris 2003. ISBN 2-914369-06-9 scholarly essays in English on Ford operations in Europe; reviewed in Len Holden, Len. "Fording the Atlantic: Ford and Fordism in Europe" in Business History Volume 47, #January 1, 2005 pp 122–127
- Bowman, Timothy J. Spirituality at Work: An Exploratory Sociological Investigation of the Ford Motor Company. London School of Economics and Political Science, 2004
- Brinkley, Douglas G. Wheels for the World: Henry Ford, His Company, and a Century of Progress (2003)
- Brinkley, Douglas. "Prime Mover". American Heritage 2003 54(3): 44–53. on Model T
- Bryan, Ford R. Henry's Lieutenants, 1993; ISBN 0-8143-2428-2
- Bucci, Federico. Albert Kahn: Architect of Ford Princeton Architectural Press, 1993
- Cabadas, Joseph P. River Rouge: Ford's Industrial Colossus (2004), heavily illustrated
- Dempsey, Mary A. "Fordlandia' Michigan History 1994 78(4): 24–33. Ford's rubber plantation in Brazil
- Flink, James. America Adopts the Automobile, 1895–1910 MIT Press, 1970
- Foster, Mark S. "The Model T, The Hard Sell, and Los Angeles Urban Growth: The Decentralization of Los Angeles During the 1920s." Pacific Historical Review 44.4 (November 1975): 459–84
- David Halberstam, The Reckoning (1986) detailed reporting on the crises of 1973-mid 1980s
- Iacocca, Lee and William Novak. Iacocca: An Autobiography (1984)
- Jacobson, D. S. "The Political Economy of Industrial Location: the Ford Motor Company at Cork 1912–26." Irish Economic and Social History [Ireland] 1977 4: 36–55. Ford and Irish politics
- Lacey, Robert "Ford: The Men and the Machine" (Heinnemann, London) 0 414 401027 (1986)
- Levinson, William A. Henry Ford's Lean Vision: Enduring Principles from the First Ford Motor Plant, 2002; ISBN 1-56327-260-1
- Kuhn, Arthur J. GM Passes Ford, 1918–1938: Designing the General Motors Performance-Control System. Pennsylvania State University Press, 1986
- Magee, David. Ford Tough: Bill Ford and the Battle to Rebuild America's Automaker (2004)
- Maxton, Graeme P. and John Wormald, Time for a Model Change: Re-engineering the Global Automotive Industry (2004)
- May, George S. A Most Unique Machine: The Michigan Origins of the American Automobile Industry Eerdman's, 1975
- Maynard, Micheline. The End of Detroit: How the Big Three Lost Their Grip on the American Car Market (2003)
- McIntyre, Stephen L. "The Failure of Fordism: Reform of the Automobile Repair Industry, 1913–1940: Technology and Culture 2000 41(2): 269–299. repair shops rejected flat rates
- Nevins, Allan; Frank Ernest Hill (1954). Ford: The Times, The Man, The Company. New York: Charles Scribners' Sons.
- Nevins, Allan; Frank Ernest Hill (1957). Ford: Expansion and Challenge, 1915–1933. New York: Charles Scribners' Sons.
- Nevins, Allan; Frank Ernest Hill (1962). Ford: Decline and Rebirth, 1933–1962. New York: Charles Scribners' Sons.
- Rubenstein; James M. The Changing U.S. Auto Industry: A Geographical Analysis Routledge, 1992
- Shiomi, Haruhito and Kazuo Wada. Fordism Transformed: The Development of Production Methods in the Automobile Industry Oxford University Press, 1995
- Sorensen, Charles E.; with Williamson, Samuel T. (1956), My Forty Years with Ford, New York, New York, USA: Norton, LCCN 56-010854 . Various republications, including ISBN 9780814332795.
- Studer-Noguez; Isabel. Ford and the Global Strategies of Multinationals: The North American Auto Industry Routledge, 2002
- Tedlow, Richard S. "The Struggle for Dominance in the Automobile Market: the Early Years of Ford and General Motors" Business and Economic History 1988 17: 49–62. Ford stressed low price based on efficient factories but GM did better in oligopolistic competition by including investment in manufacturing, marketing, and management
- Thomas, Robert Paul. "The Automobile Industry and its Tycoon" Explorations in Entrepreneurial History 1969 6(2): 139–157. argues Ford did NOT have much influence on US industry
- Watts, Steven. The People's Tycoon: Henry Ford and the American Century (2005)
- Wik, Reynold M. Henry Ford and Grass-Roots America. University of Michigan Press, 1972. impact on farmers
- Wilkins, Mira and Frank Ernest Hill, American Business Abroad: Ford on Six Continents Wayne State University Press, 1964
- Williams, Karel, Colin Haslam and John Williams, "Ford versus 'Fordism': The Beginning of Mass Production?" Work, Employment & Society, Vol. 6, No. 4, 517–555 (1992), stress on Ford's flexibility and commitment to continuous improvements.
- Official gateway to global websites
- The Ford Story
- Ford on Facebook
- Ford on Twitter
- Ford Motor Company companies grouped at OpenCorporates
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