Ford Financial Analysis
Industry: Automobile (Auto Manufacturers – Major)
Sector: Consumer Goods
Products and Services:
Ford Motor Company primarily develops, manufactures, distributes, and services vehicles and parts worldwide.
Ford operates in two sectors:
• The Automotive sector: Offers vehicles primarily under the Ford (www.ford.com) and Lincoln (www.lincoln.com) brand names. This sector markets cars, trucks, and parts through retail dealers in North America, and through distributors and dealers outside of North America. It also sells cars and trucks to dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, this sector provides retail …show more content…
Increased Competition: Ford is facing increased competition from foreign companies as they increase imports to the U.S. and expand production capacity.
Smaller Vehicles: Ford plans to focus its investments on smaller, more fuel-efficient vehicles that will result in a more balanced global portfolio to keep pace with the worldwide shift in demand. Decelerating SUVs: Sales of traditional sport utility vehicles (SUVs) are decelerating. SUVs constitute 55.0% of total auto sales.
“ONE Ford” Strategy increased efficiency of R&D Expenses: All Ford vehicles competing in global segments in America, Europe and Asia. Unfavorable Currency Translation: Unfavorable currency translation rates remain a consistent problem for the Company.
Ford Motor Credit: Ford Credit is expected to exhibit solid profitability even in 2011, but at a lower level than 2010. Total Liabilities are still very