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Tuesday, 13 September 2011

Ford and the World Automobile Industry in 2007

Ford and the World Automobile Industry in 2007


 


In 2007, Ford had only lost $ 2.7 billion; compared to 2006, Ford lost $ 12.6 billion. These figures only show that Ford Automobile Company had been getting almost where it is now in the world automobile industry. Since 2007, the company has been increasing its profitability, and it has been moving towards tremendous growth in sale.  In the same year, on December 31, US $ 700 million automotive gross income of US $ 34.6 billion.  A significant sales growth were being achieved by the company because of the well developed products and the work force have been working as a team to attain their common goals.  In this connection, Ford has made its latest plan to restructure aggressively the organization, as well as to operate it profitably.  By doing this, the company can develop more innovative and valuable products for their valued customers throughout the globe.  For the entire year 2007, Ford earned pre-tax operating revenue from existing operations such as excluding special items of $ 126 million.  Special items such as Volvo of Premier Automotive Group (PAG) provided $ 3.9 billion or $ 2.28 per share asset, included in the gross amount; is the company’s revenue of $ 1.4 billion.


(http://jalopnik.com/348979/2007-a-good-year-for-ford-company-only-loses-27-billion)


According to Ford President and CEO Alan Mulaly, 2007 was a starting point of the company to improve and progress with their automotive operations. There were various effective strategies and plans that were being introduced and implemented. Similarly, excellent new products across the globe have been highly endorsed with their innovative styles, excellent quality and safety. Subsequently, it was followed by new different products in the automotive market such as Ford Flex, Lincoln MKS and Ford F-150 in North America; as well as the Ford Kuga, so as to the production version of the Ford Verve concept in Europe market.  The full blast in the productivity and marketing operations, marked Ford as having the  most  highest growth sales in the automobile industry in 2007.  In addition to that, Ford had signed an agreement with United Auto Workers (UAW) for a new four-year national labor contract that testifies the company’s high level of competitiveness in the automobile business at present time, as well as  in the future.  As a continuing commitment to meet the strong demands of their clienteles, they have been improving the productivity operations  in North America  which caused  the company a $ 1.8 billion cost savings in  terms of constant volume, mix and exchange, not included the special items. In the same year, the introduction of Ford SYNC, the company’s award-winning, fully integrated, voice activated in-car communications and entertainment system which was developed together with Microsoft.  And, by the end of 2007, Lincoln and Mercury product will be introduced too in the world market. These two automobiles are cross over utility vehicles in the USA.  And, they have been the fastest growing segment that has sales gain of 62 percent.  Equally, the Ford Mustang made as the first sports car and first ever convertible to earn the highest possible safety ratings from the National Highway Traffic and Safety Administration (NHTSA).


(http://www.articlesbase.com/automotive-articles/ford-reacts-on-auto-industry-challenges-157496.html)


On the other hand, Ford Taurus like Taurus X and Mercury Sable earned Top Safety Pick ratings from the Insurance Institute for Highway Safety (IIHS).  These two automobiles have achieved the highest ratings in frontal, side and rear crash test performance.  Aside from that, they even received five-star crash test ratings given by NHTSA.  More than anything else, Ford Europe has been able to capture the annual award for the “Car Company of the Year” from Autocar Magazines on their three other automobile models line Ford Mondeo, Ford Focus, Galaxy and S-Max.  Furthermore, South America had recorded pre –tax profits and unit sales of up to 19 percent every year.  Correspondingly, Land Rover, had achieved a three consecutive years of being unit sales record breaker.   And, because of the tremendous introduction of various automobile units  in the market, another car unit which is Volvo S80 won Auto undo Magazines in 2007, as well as it  was named Automobile Magazine’s 2008 All Star.  Following the launching of various products; Ford Europe established its new manufacturing plant in Nanjing, China.  This branch will produce the latest small car models both from Mazda and Ford.  In 2007, Ford China had marked its name as well in the China automobile industry.  It was able to sell Mazda CX-9 which other known as “North American Truck of the Year”, had been sold out in China market  as a hot selling among Chinese customers.


(http://www.articlesbase.com/automotive-articles/ford-reacts-on-auto-industry-challenges-157496.html)


References:


(http://jalopnik.com/348979/2007-a-good-year-for-ford-company-only-loses-27-billion)


(http://www.articlesbase.com/automotive-articles/ford-reacts-on-auto-industry-challenges-157496.html)



Credit:ivythesis.typepad.com




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