The Ford Motor Company (usually called Ford) is an American multinational company that produces cars. The automaker was (where the company is currently headquartered), founded by Henry Ford in Dearborn, Michigan, USA and in 1903. In its heyday of the twentieth century, Ford, along with General Motors and Chrysler, as the “Big Three” automakers, Detroit companies dominated the known U.S.A Auto market. Toyota overtook Ford in sales for the year 2004. Ford is still one of the ten largest companies in the world by revenue.
Ford introduced methods for large-scale manufacturing of cars and large industrial workforce management, especially complicated construction production processes characterized by continuous assembly. The combination of highly efficient factories, higher-paid workers, and low prices of Henry Ford revolutionized manufacturing and came into the world as Fordism by 1914 are known. Ford was in a converted car factory in 1903 with $ 28,000 in cash from twelve investors. During its early years, the company produced just a few cars a day at its factory on Mack Avenue in Detroit. Groups of two or three men worked on each car from components purchased from other companies.
In 1908, the company Ford released the Ford Model T. The first Model were built at the Piquette plant production. The company moved production to much larger Highland Park Plant to keep up with demand for the Model T, and by 1913 had developed all the basic techniques of the assembly line and mass production. Ford introduced the world’s first moving assembly line this year, the chassis assembly time reduced from 12 ½ hours in October to 2 hours, 40 minutes. However, these innovations were not popular and worker turnover was very high. Turnover meant delays and additional costs for training and the use of slow workers. On January 1914 solved the problem by doubling pay $ 5 per day, cutting shifts from nine hours to an eight-hour day, and instituting hiring practices that identified the best workers. Increased productivity and employee turnover plunged, as the cost per vehicle declined. Ford cut prices again and again and invented the system of dealers who were loyal to your brand.
Ford produced the end of 1913 50 % of all cars in the United States, and in 1918 half of all cars in the country were Model Ts. Henry Ford is reported to have said that ” Any customer can a car painted any color you want as long as it’s black.” This was because black paint was dry faster, earlier models had been available in a variety of colors.
In 1919, Edsel Ford succeeded his father as president of the company, although Henry Ford still has a hand in management. Although prices remained low through highly efficient technology, the company has a management system to the old custom, and neglected consumer demand for luxury vehicles. It began to corportion losing market share to General Motors and Chrysler, as these and other domestic and foreign competitors began with fresh cars with more innovative features and luxury options. GM had a number of models from relatively cheap and luxury, tapping all price ranges in the spectrum, while people with fewer resources used bought Model T. Competitors also opened up new markets, the granting of loans for the purchase, so that consumers could these expensive cars to buy with monthly payments. Ford initially resisted this approach, and stressed that such debt ultimately harm the consumer and the economy as a whole. Ford finally took the credit markets in December 1927, when Ford introduced the redesigned Model A, and retired the Model T after manufacture 15 million of them.
In 1925, Ford has its reach in the luxury car market expanded by the acquisition of the Lincoln Motor Company and Mercury division was founded in 1930 to serve the auto market average price. Henry Ford II, the grandson of Henry Ford, he served as president from 1945-1960 and as President and CEO of 1960 until 1980. ” Hank the Deuce ” led Ford became a public company, listed on the stock exchange in 1956. However, the Ford family holds around 40 % stake in the company through a series of class B preferred shares.
In 1946, Robert McNamara joined Ford Motor Company as a manager of financial planning and analysis. He moved quickly through a series of management positions to the presidency next level of Ford in the 9th November 1960 one day after the election of Kennedy. The first director of the company selected outside the Ford family, McNamara received substantial credit risk for the development and success in post-war Ford. Less than five weeks after the president of Ford, he accepted Kennedy ‘s invitation to join his Cabinet as Secretary of Defense. He served in this position from 21 in 1961 to 29 February 1968. In the 1950s, Ford introduced the iconic Thunderbird in 1955 and the line of the Edsel brand cars in 1958, Edsel canceled less than 27 months on the market in November 1960. The company recovered the failure of the Edsel by introducing its compact Ford Falcon in 1960 and the Mustang in 1964. In 1967, Ford of Europe was established.
Lee Iacocca was involved in the design of several successful Ford automobiles, especially the Ford Mustang, but was the “driving force ” as the court put it, behind the famous Ford Pinto. He promoted other ideas that do not reach the market as Ford products. Over time he became President of Ford Motor Company, but faced Henry Ford II and finally in 1978, was fired by the famous Henry II, despite Ford posting a profit of $ 2 billion for the year. Harold polarity as President and CEO from 1990-1993 served. Alex Trotman was Chairman and CEO from 1993-1998 and Jacques Nasser served at the helm from 1999 to 2001. Great-grandson of Henry Ford, William Clay Ford Jr., is the current Chairman of the Board and CEO.