Ford Motor Company, at present, is one of the biggest producers of cars and trucks at a global level. The different brands of Ford Company vehicles include Ford, Lincoln, Mercury, and its redesigned Ford Mustang and the F-Series pickup which have been very successful. The company also possesses an interest in Mazda and commands the Volvo nameplate.
Ford Motor Company has 95 plants spread throughout the world with 41 distribution centers and warehouses. It also has 50 engineerings, research, and development centers. The company carries its operations under the two sections namely, Automotive and Financial Services.
For the year ended on December 31, 2008, Ford traded the ACH glass business to Zeledyne, LLC. The Nashville, Tulsa, and VidrioCar plants were also included in this sale. In the year 2008, Ford and its subsidiary, the Volvo Car Corporation sold the Thai-Swedish Assembly Group to Volvo Holding Sverige, AB. The company was able to acquire 72.4% of the shares of S.C. Automobile Craiova SA in March 2008. The sale of the company’s Jaguar and Land Rover operations to Tata Motors Limited took place on June 2008.
The share value of Ford has reached $1.56. Steny Hoyer, the House Majority Leader told the Fox News Sunday that he expects that the plans of the companies will win governmental aid. However, its accountability and feasibility are yet to be seen in the long run. But the Republican leader Mr. John Boehner was skeptical about these plans. He remarked that it was a matter of convincing the American taxpayers that the government was financing a viable corporation.
Ford Motor must strive hard to find out new strategies to make the company progressive. That is what the Democrats told the executives of the major three companies last week when they sought an emergency financial aid of $25 billion. They were told by the Democratic leaders to submit new proposals with bailout plans to Congress on 2nd December. On getting the proposals they would hold hearings for voting on it the next week.
The companies have to prepare a plan as to how the governmental loans will be utilized and the period for which the financial loans are required. In order to get these loans, the companies must forego the payment of dividends and the huge amount of executive compensation. (http://articles.moneycentral.msn.com/Investing/Dispatch/market- dispatches-112408.aspx, retrieved on 14th June 2009)
The Ford Motor company earned revenues of $146,277 million during the financial year which ended on December 2008, and these earnings were down by 15.2% when compared to that of 2007. The company faced an operating loss of $4,130 million during 2008 as compared to its operating profit of $5,631 million in 2007. The net loss was $14,672 million in the financial year 2008, whereas a net loss of $2,723 million occurred in the year 2007. The sales of Ford Auto Company were down by nearly 12% for the same year. This resulted in the Japanese rival namely, Toyota, surpassing it and becoming the top auto manufacturer.