I soon I will get it?

CASE 4 Ford Motor Company: Will the Company's Strategic Moves Restore its Competitiveness and Financial Performance? Marlene M. Reed Baylor University Rochelle R. Brunson Baylor University A report by Road Show on CNET, dated June 5. 2019, suggested that the Ford Fusion 2020 model would be the last car Ford would pro duce. The discontinuation of the Fusion was said to be a part of Ford's shifting strategic focus away from passenger cars toward Crossovers and SUV-many with electrified powertrains. Observers wondered if Ford could essentially abandon the market for automobiles as car sales had been its lifeblood since 1908 when Henry Ford revolutionized passenger portation with production of the Model T. Industry analysts also wondered if the American love affair with the SUV and trucks would continue if the price C3031 ML Ready R. Br. Beslent AB EXHIBITI History of the Ford Motor Company 1896-Henry Ford built the Quadricycle, the forerunner of the automobile 1899-Henry Ford joins a group that founded the Detroit Automobile Company 1901-Henry Ford defeat the top racecar driver of the rain is 25. The victory led to Sweepstakes. The victory led to Ford's second short ved attempt tuto manufacture-the Henry Ford Company 1903 - The Ford Motor Company is incorporated with an initial 12 investors wd10ooves. The company had spent almost all of its $28.000 cash investment by the time it sold the first Ford Model A on July 22 By October the con had tumed a profit of $37.000 1904-Ford Motor Company of Canada is founded. The plant was built in Windsox Ontario, across the river from Ford existing tacities. The company was created to sel vehicles not just in Canadia but also cross the Empire 1907-Ford introduces the scripted typeface of dis trademark 1908-Ford introduces the Model T Ford sold 15 ton oferis model before con preoction in May 1927 became the most famous car in the world 1913-Ford introduces the Integrove moving assembly line to Ruto Draction. This innovation reduced Model T's chassis assembly line from 1251015 hours and brought about a revolution in contacturing 1914 Ford ides the famous 55 Day' wagement fort's ontoyees with for factory wore. The company who reduced the word om 918 The day after the arounced 10.000 people lined up hop to be hired by Ford Scanned with CamScanner MAITCes Creting decling Sun Segy 1919-fed pomuck The truck weder Meld on the dele huwa and andere 1919-chelord ecce Henry Ford president of the company 1927-Fondacoste Lincoln Motor Company 192- Ford begin production of the Ford Moteries. The "The waterlesed by Anita many commercialines 1922- Ford beginning the 1928 Model A. The company doned plans over the world to spends me Teing factors and perfecting the design of the 1936 Ford by the Lincoln Zephine Und Zeph's sleek, rodynan shaped me the brenda was success, when auto productions during World War, the Zepheme was dropped as well 1941.ord begins producinges for the US mily 1942- Fordhalts production of stories in the United States to produce your 1948 Ford produces the series line olcs. The company cased building trucks on car forms and ined a purpose-built tryckplattad 1954-Fonduces the Thunderbird That would become a classe 1956-Ford becomes a pored compar 1919-Ford Cred sebe. The company offered desta car buyers 1964-The Ford Mustang goes on the car was alge success and has remained one of ting vehicles in story 1965-Hard Philic engineered the Mission Control Centered to put a man on the moon 1976-Ford of Educatie Ford Fiesta 1986 Ford duces the moderne Slovenia. This made of tomated cry assembly lines to preventies 1990-Ford eroduces the pole With model. Por edhe SUV at The became one of fonts els For the Ford Ranger Electric Vw This was time of days veicies and 1990-The Lincoln Navigatore di Venet 2011-re continue the Mercury cance of the order Lee 2016-For MLC See This focused on changing the way we w designed to the company to the level in connect the customer o e began to escate the United States Rosie and the United Arab Emirate med intact to were wound the world Exhibiti below outlines key milestones in the hi of the Ford Motor Den hadded once disposable ongelmand demand for bucket in the many possono 30192 dorthe year of the COVI 19 000 Ft end lack And Apel 1030 The coco mentor Ford Mondeo 014 Ford's Strategic Situation in 2020 By 2020. Redmode 200.000 people world wide 70 peducim mies SUVL. and is trois Sinethem. 2001, the Scanned with Camscanner (hp) 08 CASE 4 Ford Motor Company EXHIBIT 2 Performance of Ford Motor Company's Stock Price, April 2015 to April 2020 Then the order Commente 14 wil gran \PA 12 10 Stock Price 2020 2016 2017 2016 2019 Year Performance of the Ford Motor Company's Stock Price Versus the S&P 500 indes -60 +45% +306 S&P 500 wy Percent Change April 2015 - 2 151 30 45 SON Ford Motor Company's Stock Price -754 2017 2018 2011 2016 3030 Year Ford's New Product Strategy W Clay Ford, Executive Chairman of Ford suces that 11 years when the company began the company's mission was to make people's lives better by making mobility accesible and affordable By 2030, the company was moving toward manute turing man whicles for imar worldThe world plan focused on for pian (1) A winnin portfolio (2) new propolitan options (1) high levels mous budes huilt on the most trusted self system and (4) cloud-based mobility experiences that delivering revenge The winning portfolie in 2020 was word to be the Escape Expedition Explorer. Ranger, F.150 Hybrid, Bence and the Mustang Shelby GT500 The Ford Broncos produced between 1965 and 1996 and was discontind when the male door fronco Il suffered from a tipi problem. The Trintroduced will be modular with remo able to doors Scanned with CamScanner PART 2 Cases in Cating and Executing Strategy EXHIBIT3 Consolidated Income Statements for the Ford Motor Company 2017-2019 ($ In millions except per share amounts) 2017 2010 2.267 mere Automotive $145,653 $146.294 $143.699 Ford Crede 11,113 12.018 12,260 M 10 41 Total venues 156.776 160.330 155,000 Come and expenses Cost of sales 131,321 136,269 134.693 Selling, adesinistrative, and other expenses 11527 11,403 11.161 Ford Credit interest operating and other expenses 9042 9463 9472 Total costs and expenses 151 895 157.135 155,326 Operating income 4881 3.203 574 literest expense on Automotive 1,130 1,171 963 Interest expense on er det 57 57 Other income possinet 2247 (2260 Equity net income of affiliated companies 1201 122 32 Income Loss before income taxes 8.159 4.345 1640 Provision for Benefit from income the 402 050 224 Net Income 7,757 3.695 34 Les Income a butable to non controlling interests 26 18 22 Net Income attributable to Ford Motor Company $ 3,677 $ 47 Fangs per stare able to Ford Motor Company common and closesteck Base income $1.04 $0.93 101 Diluted income 5192 $0.92 Sao Weighted average shares used in computation of earnings per share Basi shares 3.975 1,974 Diluted Shares 2.990 3.95 2003 Podomowy 2016 TOK EXHIBIT 4 Ford Motor Company Consolidated Balance Sheets, 2018-2019 (5 amounts in millions) December December as 2018 2015 3 2972 ASSETS Cathai 51764 $ 1716 12 5453 195 11220 53165 Forence Trade handelen 563 Abg O. Total current assets 14 11204 Scanned with CamScanner (hp PART 2 Cases in Cating and Executing Strategy EXHIBIT3 Consolidated Income Statements for the Ford Motor Company 2017-2019 ($ In millions except per share amounts) 2017 2010 2.267 mere Automotive $145,653 $146.294 $143.699 Ford Crede 11,113 12.018 12,260 M 10 41 Total venues 156.776 160.330 155,000 Come and expenses Cost of sales 131,321 136,269 134.693 Selling, adesinistrative, and other expenses 11527 11,403 11.161 Ford Credit interest operating and other expenses 9042 9463 9472 Total costs and expenses 151 895 157.135 155,326 Operating income 4881 3.203 574 literest expense on Automotive 1,130 1,171 963 Interest expense on er det 57 57 Other income possinet 2247 (2260 Equity net income of affiliated companies 1201 122 32 Income Loss before income taxes 8.159 4.345 1640 Provision for Benefit from income the 402 050 224 Net Income 7,757 3.695 34 Les Income a butable to non controlling interests 26 18 22 Net Income attributable to Ford Motor Company $ 3,677 $ 47 Fangs per stare able to Ford Motor Company common and closesteck Base income $1.04 $0.93 101 Diluted income 5192 $0.92 Sao Weighted average shares used in computation of earnings per share Basi shares 3.975 1,974 Diluted Shares 2.990 3.95 2003 Podomowy 2016 TOK EXHIBIT 4 Ford Motor Company Consolidated Balance Sheets, 2018-2019 (5 amounts in millions) December December as 2018 2015 3 2972 ASSETS Cathai 51764 $ 1716 12 5453 195 11220 53165 Forence Trade handelen 563 Abg O. Total current assets 14 11204 Scanned with CamScanner (hp C-41 CASE 4 Ford Motor Company 2018 55.544 29,119 36,178 2.709 10,412 53,703 29,220 36.469 2,519 11.863 10,705 $288.537 77929 $256.540 Fox Credii finance receivables, Nel investment in operating lates Net property Ein nelaiset of fated companies Deferred incones Others Total amets LIABILITAS Payables Other abilities and Geferred rewire Automotive debt payabile in one year Ford Creek payable within one year Other payable within one year Liabides held for sale Total current les $21.520 20.556 2.314 $1,179 $ 20,673 22.987 1.445 52 371 130 526 98,132 95,569 23.588 11.233 8.88 600 507 220474 100 25.324 13233 37658 470 400 325.37 40 Othere and deferred revenue Automotive long-term det Ford Credit long term debil Other long term der Deferred income taxes Total Redeement noncontrolling terest EQUITY Como Stock value 501 per sh4011 milion shares of blon wuthorized Stock. Der SC Deshe 071 530 th Captain excess of per weef stock Rutan ang Acceder como To To RT MAN Carpamr 10 monorgest Total city Totals and 1 32.000 22568 22105 70 320 8 1012 1992 4 16 20 23 Scanned with CamScanner han PART 2 Cases in Crafting and receg Smeg Two years before the Bronco was disconti ued, the automobile gained a great deal of atten tion when Al Contings drove O. Simpson down a Los Angeles freeway afer Simpson was charged with the murder of his ex-wife and her friend. More than 95 million people across the United States watched the two-hour pursuit on television while crowds gathered on overpasses to cheer on the NFL football legend events and other factors such as the COVID-19 virus threat In 2020. Some of the greatest challenges to Ford in 2020 Identified by management included the following 1. Acceptance of new and existing products by the market. 2. Sales of more profitable farger vehicles, especially In the United States 3. Increased price competition resulting from Indus try excess capacity 4. Fluctuations in commodity prices foreign exchange rates, and interest rates. 5. Global macroeconomic factors such as proteo tionist trade policies and other events including Brexit. 6. The company's abity to maintain a competitive cost structure 7. Pension and other post-retirement liabilities 8. Defects that result in delays in new model launches 9. Operational systems could be affected by cyber incidents Ford Credit Company Although the company experienced profitability dif ficulties in 2018 and 2019. its financial arm. Ford Credit Company. posted its best results in 2019 of the past nine years. Their profits jumped to $3 billion before takes. The result was that this arm of the com pany accounted for 50 percent of Foru's profits. This was up from 15 to 20 percent in the past. Ford Motor Company had. thus, been able to subsidize Fond's losses and allowed the company to maintain a high dividend yield. Unfortunately, data released by the New York Federal Reserve Bank in late 2019. indi- cated that the volume of 90+ days delinquent loans had risen sharply. The value of the overall auto loan and lease balance had surged to $1.3 trillion that year. In addition, subprime loans reached $66 billion in the final quarter of 2019. There were several risks for the company in the 2020s regarding the Tor Credit Company. One risk was that this financial arm of the company could experience higher than expected credit losses, lower than-anticipated residealaus on higher than expected return volumes for leased vehicles. Another tisk was that Ford Credit could ace increased code petition from financial institutions or other third par ties seeking to increase their share of financing Ford vehicle Finally, Ford Credit could be subject to new o increased credit regulations consumer or data protection regulations or other types of relation Challenges for 2020 The folostry i lected by maci con conditions over which the companicure The control Vehicles de neden um desting choices about what they will buy a car. This decimenced by factors slower consteopatical Ford and the Coronavirus Pandemic In early 2020. a new views called the coronaires of COVIT-19 bet to cause serious illess and death around the world Because of an increasing incidence of this disease in the United States many states declared "whiter in pace order intended to prevent the spread of the virus by forca pople to wirl from me Tondo Marche that was delaying the restant a car plant in SO well as the SUV dan plans in the Life States lo help protect The post President Donald Trump extended the ti lines though endorp 000. The stru Juwita Besar the old jobs and the Great Depw and the Purchasingi od that CO For Health Care the last och Tville Mile Scanned with CamScanner CASEA Ford Motor Comp CA EXHIBITS Global Automobile Industry Products and Services Segmentation, 2018 EXHIBIT 6 2018 U.S. Retail Sales Volume Segregated by Product Type US Data Sa Percentage Trucks 1,139,029 45,6% SUM 872.215 34.9% Cars 486,024 100% Product Percege of Mart 36.6 Cms 19.45 32.1% 10.06. Total Ciensity vehicles (CV) Pickupus Sports by vehicle (SUV) Other 6.95 Surte Anual Report of the Ford Motor Company, 2018 13.6% 100% Source Ohan, buty 2020. alden Global Car Autom destinations for automobile products. The historie methodology for manufacturing automotive vehicles was to assemble cars at a domestic plant and then export them to their final destinations. However, the supply chain has become more complex. The shin has been toward macturing cars close to their Tinal destination to sve on logistics costsAnother part of this strategy is to focus on very speel brand ing devices to appeal to the customer. An example of this is the logo "Made in America make 30,000 ventilators a month. GE had licensed the design of the ventilator from Airon Corporation of Melbourne, Florida. The device works on air pres sure and does not need electricity Boch Ford and GE announced that Ford would lielp increase produce tion of another ventilator based on a design from GE Healthcare. Global Automobile Status A survey of the range of products and services pro- vided by the global automobile manufacturing indus Trys shown below in Exhibit Although the production of cars accounts for 36.6 percent of global sdustry revenue, this was tower than its production volume becaurs normally sellaser price SUV and com mercial vehicle. Therefore, they controle less to REVEALE Opunt hos The Old been was consumers atted fine fel efficiency and sales in the Unic States were showed lower total sales of cats han con SUVse this Ghethy Germany. Japan, the State and Candweepid to the way ciparus of cars and mobile (SUVS truck Our the bad many. Chin the lined Kingdom and Bespected to be A Future Strategy By 2020, the Ford Motor Company Beam difficult dans to make. Although the desi economies of the world primarily be automobiles, the developed econo Per the larger crossover SUV, truck the pany had already made a Lidl the Ford Fusion is largest wondered the wall drop sem the as cicept for the Mustang Am happens which ele smith total LUIT TS ogs hal T Thes Scannect with CamScanner 350 PART 2 Cases in Crafting and Executing Strategy ENDNOTES Ewing Steve Lune 2019). A Fordion models wit go out of production in 2020 Roar Show by CNET ble Branch 6.20201 Ford Bronto pomedor e a cult vehicle. The Der News gh. Ich 2. 2020 Here's Why Ford Motor Company I can't wait banky, New hit comhareylerd-meter-company card bankrupte Annual Reportale Ford Motor Company 2018 Weyland, Michael March 31, 2020). Ford postpones reperig was due to cornus pandemic www.enbe. an/2020/05/31/ord-estpanese pening her plants du terviselet The New York Times March 202020) Fondos effort to make worship www.nytimes.com/2020/03/30/business wheckeretadaycarenhemenke. 31039841 Orian, Ear February 200 cand manufacturing thward.com 1995-2020 CASE 4 Ford Motor Company: Will the Company's Strategic Moves Restore its Competitiveness and Financial Performance? Marlene M. Reed Baylor University Rochelle R. Brunson Baylor University A report by Road Show on CNET, dated June 5. 2019, suggested that the Ford Fusion 2020 model would be the last car Ford would pro duce. The discontinuation of the Fusion was said to be a part of Ford's shifting strategic focus away from passenger cars toward Crossovers and SUV-many with electrified powertrains. Observers wondered if Ford could essentially abandon the market for automobiles as car sales had been its lifeblood since 1908 when Henry Ford revolutionized passenger portation with production of the Model T. Industry analysts also wondered if the American love affair with the SUV and trucks would continue if the price C3031 ML Ready R. Br. Beslent AB EXHIBITI History of the Ford Motor Company 1896-Henry Ford built the Quadricycle, the forerunner of the automobile 1899-Henry Ford joins a group that founded the Detroit Automobile Company 1901-Henry Ford defeat the top racecar driver of the rain is 25. The victory led to Sweepstakes. The victory led to Ford's second short ved attempt tuto manufacture-the Henry Ford Company 1903 - The Ford Motor Company is incorporated with an initial 12 investors wd10ooves. The company had spent almost all of its $28.000 cash investment by the time it sold the first Ford Model A on July 22 By October the con had tumed a profit of $37.000 1904-Ford Motor Company of Canada is founded. The plant was built in Windsox Ontario, across the river from Ford existing tacities. The company was created to sel vehicles not just in Canadia but also cross the Empire 1907-Ford introduces the scripted typeface of dis trademark 1908-Ford introduces the Model T Ford sold 15 ton oferis model before con preoction in May 1927 became the most famous car in the world 1913-Ford introduces the Integrove moving assembly line to Ruto Draction. This innovation reduced Model T's chassis assembly line from 1251015 hours and brought about a revolution in contacturing 1914 Ford ides the famous 55 Day' wagement fort's ontoyees with for factory wore. The company who reduced the word om 918 The day after the arounced 10.000 people lined up hop to be hired by Ford Scanned with CamScanner MAITCes Creting decling Sun Segy 1919-fed pomuck The truck weder Meld on the dele huwa and andere 1919-chelord ecce Henry Ford president of the company 1927-Fondacoste Lincoln Motor Company 192- Ford begin production of the Ford Moteries. The "The waterlesed by Anita many commercialines 1922- Ford beginning the 1928 Model A. The company doned plans over the world to spends me Teing factors and perfecting the design of the 1936 Ford by the Lincoln Zephine Und Zeph's sleek, rodynan shaped me the brenda was success, when auto productions during World War, the Zepheme was dropped as well 1941.ord begins producinges for the US mily 1942- Fordhalts production of stories in the United States to produce your 1948 Ford produces the series line olcs. The company cased building trucks on car forms and ined a purpose-built tryckplattad 1954-Fonduces the Thunderbird That would become a classe 1956-Ford becomes a pored compar 1919-Ford Cred sebe. The company offered desta car buyers 1964-The Ford Mustang goes on the car was alge success and has remained one of ting vehicles in story 1965-Hard Philic engineered the Mission Control Centered to put a man on the moon 1976-Ford of Educatie Ford Fiesta 1986 Ford duces the moderne Slovenia. This made of tomated cry assembly lines to preventies 1990-Ford eroduces the pole With model. Por edhe SUV at The became one of fonts els For the Ford Ranger Electric Vw This was time of days veicies and 1990-The Lincoln Navigatore di Venet 2011-re continue the Mercury cance of the order Lee 2016-For MLC See This focused on changing the way we w designed to the company to the level in connect the customer o e began to escate the United States Rosie and the United Arab Emirate med intact to were wound the world Exhibiti below outlines key milestones in the hi of the Ford Motor Den hadded once disposable ongelmand demand for bucket in the many possono 30192 dorthe year of the COVI 19 000 Ft end lack And Apel 1030 The coco mentor Ford Mondeo 014 Ford's Strategic Situation in 2020 By 2020. Redmode 200.000 people world wide 70 peducim mies SUVL. and is trois Sinethem. 2001, the Scanned with Camscanner (hp) 08 CASE 4 Ford Motor Company EXHIBIT 2 Performance of Ford Motor Company's Stock Price, April 2015 to April 2020 Then the order Commente 14 wil gran \PA 12 10 Stock Price 2020 2016 2017 2016 2019 Year Performance of the Ford Motor Company's Stock Price Versus the S&P 500 indes -60 +45% +306 S&P 500 wy Percent Change April 2015 - 2 151 30 45 SON Ford Motor Company's Stock Price -754 2017 2018 2011 2016 3030 Year Ford's New Product Strategy W Clay Ford, Executive Chairman of Ford suces that 11 years when the company began the company's mission was to make people's lives better by making mobility accesible and affordable By 2030, the company was moving toward manute turing man whicles for imar worldThe world plan focused on for pian (1) A winnin portfolio (2) new propolitan options (1) high levels mous budes huilt on the most trusted self system and (4) cloud-based mobility experiences that delivering revenge The winning portfolie in 2020 was word to be the Escape Expedition Explorer. Ranger, F.150 Hybrid, Bence and the Mustang Shelby GT500 The Ford Broncos produced between 1965 and 1996 and was discontind when the male door fronco Il suffered from a tipi problem. The Trintroduced will be modular with remo able to doors Scanned with CamScanner PART 2 Cases in Cating and Executing Strategy EXHIBIT3 Consolidated Income Statements for the Ford Motor Company 2017-2019 ($ In millions except per share amounts) 2017 2010 2.267 mere Automotive $145,653 $146.294 $143.699 Ford Crede 11,113 12.018 12,260 M 10 41 Total venues 156.776 160.330 155,000 Come and expenses Cost of sales 131,321 136,269 134.693 Selling, adesinistrative, and other expenses 11527 11,403 11.161 Ford Credit interest operating and other expenses 9042 9463 9472 Total costs and expenses 151 895 157.135 155,326 Operating income 4881 3.203 574 literest expense on Automotive 1,130 1,171 963 Interest expense on er det 57 57 Other income possinet 2247 (2260 Equity net income of affiliated companies 1201 122 32 Income Loss before income taxes 8.159 4.345 1640 Provision for Benefit from income the 402 050 224 Net Income 7,757 3.695 34 Les Income a butable to non controlling interests 26 18 22 Net Income attributable to Ford Motor Company $ 3,677 $ 47 Fangs per stare able to Ford Motor Company common and closesteck Base income $1.04 $0.93 101 Diluted income 5192 $0.92 Sao Weighted average shares used in computation of earnings per share Basi shares 3.975 1,974 Diluted Shares 2.990 3.95 2003 Podomowy 2016 TOK EXHIBIT 4 Ford Motor Company Consolidated Balance Sheets, 2018-2019 (5 amounts in millions) December December as 2018 2015 3 2972 ASSETS Cathai 51764 $ 1716 12 5453 195 11220 53165 Forence Trade handelen 563 Abg O. Total current assets 14 11204 Scanned with CamScanner (hp PART 2 Cases in Cating and Executing Strategy EXHIBIT3 Consolidated Income Statements for the Ford Motor Company 2017-2019 ($ In millions except per share amounts) 2017 2010 2.267 mere Automotive $145,653 $146.294 $143.699 Ford Crede 11,113 12.018 12,260 M 10 41 Total venues 156.776 160.330 155,000 Come and expenses Cost of sales 131,321 136,269 134.693 Selling, adesinistrative, and other expenses 11527 11,403 11.161 Ford Credit interest operating and other expenses 9042 9463 9472 Total costs and expenses 151 895 157.135 155,326 Operating income 4881 3.203 574 literest expense on Automotive 1,130 1,171 963 Interest expense on er det 57 57 Other income possinet 2247 (2260 Equity net income of affiliated companies 1201 122 32 Income Loss before income taxes 8.159 4.345 1640 Provision for Benefit from income the 402 050 224 Net Income 7,757 3.695 34 Les Income a butable to non controlling interests 26 18 22 Net Income attributable to Ford Motor Company $ 3,677 $ 47 Fangs per stare able to Ford Motor Company common and closesteck Base income $1.04 $0.93 101 Diluted income 5192 $0.92 Sao Weighted average shares used in computation of earnings per share Basi shares 3.975 1,974 Diluted Shares 2.990 3.95 2003 Podomowy 2016 TOK EXHIBIT 4 Ford Motor Company Consolidated Balance Sheets, 2018-2019 (5 amounts in millions) December December as 2018 2015 3 2972 ASSETS Cathai 51764 $ 1716 12 5453 195 11220 53165 Forence Trade handelen 563 Abg O. Total current assets 14 11204 Scanned with CamScanner (hp C-41 CASE 4 Ford Motor Company 2018 55.544 29,119 36,178 2.709 10,412 53,703 29,220 36.469 2,519 11.863 10,705 $288.537 77929 $256.540 Fox Credii finance receivables, Nel investment in operating lates Net property Ein nelaiset of fated companies Deferred incones Others Total amets LIABILITAS Payables Other abilities and Geferred rewire Automotive debt payabile in one year Ford Creek payable within one year Other payable within one year Liabides held for sale Total current les $21.520 20.556 2.314 $1,179 $ 20,673 22.987 1.445 52 371 130 526 98,132 95,569 23.588 11.233 8.88 600 507 220474 100 25.324 13233 37658 470 400 325.37 40 Othere and deferred revenue Automotive long-term det Ford Credit long term debil Other long term der Deferred income taxes Total Redeement noncontrolling terest EQUITY Como Stock value 501 per sh4011 milion shares of blon wuthorized Stock. Der SC Deshe 071 530 th Captain excess of per weef stock Rutan ang Acceder como To To RT MAN Carpamr 10 monorgest Total city Totals and 1 32.000 22568 22105 70 320 8 1012 1992 4 16 20 23 Scanned with CamScanner han PART 2 Cases in Crafting and receg Smeg Two years before the Bronco was disconti ued, the automobile gained a great deal of atten tion when Al Contings drove O. Simpson down a Los Angeles freeway afer Simpson was charged with the murder of his ex-wife and her friend. More than 95 million people across the United States watched the two-hour pursuit on television while crowds gathered on overpasses to cheer on the NFL football legend events and other factors such as the COVID-19 virus threat In 2020. Some of the greatest challenges to Ford in 2020 Identified by management included the following 1. Acceptance of new and existing products by the market. 2. Sales of more profitable farger vehicles, especially In the United States 3. Increased price competition resulting from Indus try excess capacity 4. Fluctuations in commodity prices foreign exchange rates, and interest rates. 5. Global macroeconomic factors such as proteo tionist trade policies and other events including Brexit. 6. The company's abity to maintain a competitive cost structure 7. Pension and other post-retirement liabilities 8. Defects that result in delays in new model launches 9. Operational systems could be affected by cyber incidents Ford Credit Company Although the company experienced profitability dif ficulties in 2018 and 2019. its financial arm. Ford Credit Company. posted its best results in 2019 of the past nine years. Their profits jumped to $3 billion before takes. The result was that this arm of the com pany accounted for 50 percent of Foru's profits. This was up from 15 to 20 percent in the past. Ford Motor Company had. thus, been able to subsidize Fond's losses and allowed the company to maintain a high dividend yield. Unfortunately, data released by the New York Federal Reserve Bank in late 2019. indi- cated that the volume of 90+ days delinquent loans had risen sharply. The value of the overall auto loan and lease balance had surged to $1.3 trillion that year. In addition, subprime loans reached $66 billion in the final quarter of 2019. There were several risks for the company in the 2020s regarding the Tor Credit Company. One risk was that this financial arm of the company could experience higher than expected credit losses, lower than-anticipated residealaus on higher than expected return volumes for leased vehicles. Another tisk was that Ford Credit could ace increased code petition from financial institutions or other third par ties seeking to increase their share of financing Ford vehicle Finally, Ford Credit could be subject to new o increased credit regulations consumer or data protection regulations or other types of relation Challenges for 2020 The folostry i lected by maci con conditions over which the companicure The control Vehicles de neden um desting choices about what they will buy a car. This decimenced by factors slower consteopatical Ford and the Coronavirus Pandemic In early 2020. a new views called the coronaires of COVIT-19 bet to cause serious illess and death around the world Because of an increasing incidence of this disease in the United States many states declared "whiter in pace order intended to prevent the spread of the virus by forca pople to wirl from me Tondo Marche that was delaying the restant a car plant in SO well as the SUV dan plans in the Life States lo help protect The post President Donald Trump extended the ti lines though endorp 000. The stru Juwita Besar the old jobs and the Great Depw and the Purchasingi od that CO For Health Care the last och Tville Mile Scanned with CamScanner CASEA Ford Motor Comp CA EXHIBITS Global Automobile Industry Products and Services Segmentation, 2018 EXHIBIT 6 2018 U.S. Retail Sales Volume Segregated by Product Type US Data Sa Percentage Trucks 1,139,029 45,6% SUM 872.215 34.9% Cars 486,024 100% Product Percege of Mart 36.6 Cms 19.45 32.1% 10.06. Total Ciensity vehicles (CV) Pickupus Sports by vehicle (SUV) Other 6.95 Surte Anual Report of the Ford Motor Company, 2018 13.6% 100% Source Ohan, buty 2020. alden Global Car Autom destinations for automobile products. The historie methodology for manufacturing automotive vehicles was to assemble cars at a domestic plant and then export them to their final destinations. However, the supply chain has become more complex. The shin has been toward macturing cars close to their Tinal destination to sve on logistics costsAnother part of this strategy is to focus on very speel brand ing devices to appeal to the customer. An example of this is the logo "Made in America make 30,000 ventilators a month. GE had licensed the design of the ventilator from Airon Corporation of Melbourne, Florida. The device works on air pres sure and does not need electricity Boch Ford and GE announced that Ford would lielp increase produce tion of another ventilator based on a design from GE Healthcare. Global Automobile Status A survey of the range of products and services pro- vided by the global automobile manufacturing indus Trys shown below in Exhibit Although the production of cars accounts for 36.6 percent of global sdustry revenue, this was tower than its production volume becaurs normally sellaser price SUV and com mercial vehicle. Therefore, they controle less to REVEALE Opunt hos The Old been was consumers atted fine fel efficiency and sales in the Unic States were showed lower total sales of cats han con SUVse this Ghethy Germany. Japan, the State and Candweepid to the way ciparus of cars and mobile (SUVS truck Our the bad many. Chin the lined Kingdom and Bespected to be A Future Strategy By 2020, the Ford Motor Company Beam difficult dans to make. Although the desi economies of the world primarily be automobiles, the developed econo Per the larger crossover SUV, truck the pany had already made a Lidl the Ford Fusion is largest wondered the wall drop sem the as cicept for the Mustang Am happens which ele smith total LUIT TS ogs hal T Thes Scannect with CamScanner 350 PART 2 Cases in Crafting and Executing Strategy ENDNOTES Ewing Steve Lune 2019). A Fordion models wit go out of production in 2020 Roar Show by CNET ble Branch 6.20201 Ford Bronto pomedor e a cult vehicle. The Der News gh. Ich 2. 2020 Here's Why Ford Motor Company I can't wait banky, New hit comhareylerd-meter-company card bankrupte Annual Reportale Ford Motor Company 2018 Weyland, Michael March 31, 2020). Ford postpones reperig was due to cornus pandemic www.enbe. an/2020/05/31/ord-estpanese pening her plants du terviselet The New York Times March 202020) Fondos effort to make worship www.nytimes.com/2020/03/30/business wheckeretadaycarenhemenke. 31039841 Orian, Ear February 200 cand manufacturing thward.com 1995-2020