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Ford motor company - Essay Example
Pages 3 (753 words)
Final Project Ford Motor Company The year of 2008 proved o be quite challenging for Ford Motor Company. This year witnessed the financial markets’ downfall, a nationwide mortgage in the US as well as housing disaster and increasing unemployment. The company suffered gravely because of the ability of it to invest was reduced owing to the drop for availability of financial resources…
The company had also borrowed funds by providing security for the funds with almost all of its assets. Due to all these reasons, by the end of 2008, the company had sold a major portion of its managing interest that it enjoyed in Mazda. Mazda was basically an Original Equipment Manufacturer (OEM) which had its base in Japan and was also in view of the “strategic” prospect of Volvo, the company’s Swedish subsidiary. The reducing demand because of the oil crisis and their increased prices during the period 2003-2008 gravely affected the demand of sport utility vehicles (SUV) and also that of the pickup trucks. The manufacturers also faced the problem of increasing labor costs compared to other non-unionized companies. In addition, the amount of the cars traded in the US was considerably attached to home credit through the equity. The economic and financial crisis in the US in 2008 made it tough to avail credit and thus, the sales of vehicles declined heavily (Ford, 2011; Cooney, Bickley, Chaikind, Pettit, Purcell, Rapaport, & Shorter, 2009). ...
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