(Anon. 2009) - 1.
Its revenues are highly dependent on the sales of trucks and SUVs which are quite famous in the market. Of late, the demand for these heavy vehicles has started to dwindle due to the ongoing recession since 2007.
2008 has particularly been a very difficult year for the automotive as well as Ford motor company. Questions are being raised about its very sustainability because the demand for its famous products has fallen very drastically. Not only that, because the company did not think of catering to the small car market from past ten years, many loyal customers who are in need of such cars are now shifting towards other companies.
The result of such lapse in conquering the small car market is the closure of 12 manufacturing facility units in North America. Not only that, several tough decisions like layoffs and attritions have also been taken in the recent past. Buyouts were also undertaken to reduce the U.S. payroll.
These are the general issues which every automotive company would face. However, capturing the North American markets and entry into emerging markets through its small and midsize car production are the necessary actions to be taken up to ensure sustainability and improve on its balance sheet.
For this, it needs to do responsible restructuring instead of downsizing the company. It needs to shift its workers from the production of the trucks and SUVs to small and midsized cars. Thus, it can address the ethical issues which encircled the organization during the previous attritions. Feasibility analysis has to be conducted to understand the expected demand for its small and midsized cars. According to that demand, it needs to estimate the production for which cost-benefit analysis has to be drawn out. This will clarify the term within which the company plans to return back to profitability. In this way, the previous miss-management of issues can be curbed to a large extent and the