The History of Ford Motors
The Dearborn, Michigan-based Ford Motor Company is responsible for perfecting the mass-production of the automobile that has influenced other industries with similar practices and streamlined manufacturing. Ford is also recognized for implementing the 8-hour work day and offering the sale of its cars on a payment installment plan. Today, it employs more than 213,000 workers, but has recorded severe losses since 2006. As of August 2009, it has avoided bankruptcy.
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Origins
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Henry Ford in 1919.
Henry Ford founded and incorporated the Ford Motor Company in 1903. In 1908, Ford introduced the Model T, a versatile and economical car that was produced on what became the modern assembly line.
Labor Relations
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The Ford Model T debuted in 1908.
In 1914, Ford instituted the $5, 8-hour workday for its factory workers, a raise from $2.40 for a 9-hour day. But by the 1930s, the company was beset with labor strikes. In 1932, police killed striking workers at the assembly plant in Dearborn. The company also employed private security men to act as strikebreakers to intimidate and beat union leaders. Ford didn't recognize collective bargaining until 1941.
Products
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This 1978 Lincoln Continental is part of Ford's luxury car lineup.
Ford manufactures Ford, Lincoln and Mercury cars and the F-Series trucks. It also produces Volvo and Mazda cars and trucks. It owns a small stake in Aston Martin, and was once the parent company to Jaguar and Land Rover. Jaguar and Land Rover were sold in 2008 for $2.3 billion to Tata Motors of India.
Global Reach
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In 2009, Ford had 95 plants producing vehicles for more than 200 markets on six continents. Its operations include Ford North America, Ford South America, Ford Asia Pacific and Ford Europe. In 2008, Ford sold the Thai-Swedish Assembly Group to Volvo Holding Sverige.
Ford's Heyday
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Ford F-Series trucks roll off the automaker's assembly line.
Ford's fortunes peaked in 1987 when it recorded a $4.63 billion net profit. In the 1990s, it employed 345,000 employees worldwide. In 1993 alone, five of the best selling cars and trucks in North America were Fords. In 2001, total revenue skyrocketed to $107 billion.
Junk Status
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Ford's fortunes began to slide in 2005 when its corporate bond rating was dropped to junk status. Health care costs for an older workforce, high gas prices and falling sport utility vehicle sales were blamed.
Difficult Times
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In 2006, Ford reported a $12.7 billion loss in revenue, the largest loss in its history. In the second quarter of 2007, Ford reported a $750 million profit, but net losses for fiscal year 2007 were $2.7 billion. Since 2000, it had laid off 13.4 percent of its worldwide workforce. Ford went to Congress in late 2008 for a bailout, but was rejected. Ford later decided it didn't need the funds, citing a line of credit it acquired in 2006 to see it through the crisis.
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- Photo Credit dave_7, Hartsook, Kas Andrew, Ford Motor Company
