Tough Love - Ford Motor Company at 100 Years

Authors

  • Jan Serrano Francis Marion University

Keywords:

automobile manufacturing, brand loyalty, farmed industrialist, financial decline

Abstract

As one of the oldest automobile manufacturing companies in the world, Ford Motor Company has a strong brand loyalty among many U.S. consumers. At the brink of the financial crises in 2007, however, domestic automakers, including Ford, were facing serious profitability issues. Some of these were external factors beyond Ford's control. Nonetheless, the JOO year old company, still 40% owned by the Ford family and managed in part by descendants of the famed industrialist had to make some changes or face continued financial decline. After the company reported large losses for the third quarter of 2006, Boeing executive Alan Mulally was brought on board as CEO of Ford Motor Company to help the firm engineer a turnaround. This case is suitable for a course in intermediate finance. It highlights the basic factors affecting a firm's
profitability and risk.

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Published

2011-09-01

Issue

Vol. 8 No. 1 (2011)

Section

Cases

License

Copyright (c) 2011 Southeast Case Research Journal

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