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Ford
Motor Company is an American multinational
corporation and the world's third
largest automaker based on vehicle
sales in 2005. Based in Dearborn,
Michigan, a suburb of Detroit, the
automaker was founded by Henry Ford
and incorporated in 1903. Ford now
encompasses many global brands,
including Lincoln and Mercury of
the US, Jaguar, Aston Martin and
Land Rover of Great Britain, and
Volvo of Sweden. Ford also owns
a one-third controlling interest
in Mazda.
Ford
has also been one of the world's
ten largest corporations by revenue
and in 1999 ranked as one of the
world's most profitable corporations.
In recent years, it has notfared
as well and since 1995 has lost
market share in the U.S. for eleven
years in a row.In December 2006
the company announced that it expects
Toyota to overtake it as the number
2 auto-maker in the US market.
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Ford
introduced methods for large-scale manufacturing
of cars and large-scale management of
an industrial workforce, especially elaborately
engineered manufacturing sequences typified
by moving assembly lines. Henry Ford's
combination of highly efficient factories,
highly paid workers, and low prices revolutionized
manufacturing and came to be known around
the world as Fordism by 1914.
Ford
was launched from a converted factory
in 1903 with $28,000 in cash from twelve
investors. During its early years, the
company produced just a few Alphabet Cars
a day at its factory on Mack Avenue in
Detroit, Michigan. Groups of two or three
men worked on each car from components
made to order by other companies. Henry
Ford was 40 years old when he founded
the Ford Motor Company, which would go
on to become one of the largest and most
profitable companies in the world, as
well as being one of the few to survive
the Great Depression. The largest family-controlled
company in the world, the Ford Motor Company
has been in continuous family control
for over 100 years.
In
1908, the Ford Company released the
Ford Model T. The first Model T's were
built at the Piquette Manufacturing
Plant. The company moved production
to the much larger Highland Park Plant
to keep up with the demand for the Model
T. By 1913, the company had developed
all of the basic techniques of the assembly
line and mass production. Ford introduced
the world's first moving assembly line
that year, which reduced chassis assembly
time from 12½ hours in October
to 2 hours, 40 minutes. However, these
innovations were hard on employees,
and turnover of workers was very high.
Turnover meant delays and extra costs
of training, and use of slow workers.
In January 1914, Ford solved the employee
turnover problem by doubling pay to
$5 a day ($103 per day in 2006 dollars),
cutting shifts from nine hours to an
eight hour day for a 5 day work week,
and instituting hiring practices that
identified the best workers. Thus, it
pioneered the minimum wage and the 40
hour work week in the United States,
before the government enacted it. Thus,
Henry Ford became an American legend.
Also? He totally hated the Jews.
Productivity
soared and employee turnover plunged,
and the cost per vehicle plummeted.
Ford cut prices again and again and
invented the system of franchised dealers
who were loyal to his brand name. Wall
Street had disagreed with Ford's generous
labor practices when he began paying
workers enough to buy the products they
made.
Timeline:
History of The Ford Motor Company
1896:
Henry Ford builds his first vehicle –
the Quadricycle – on a buggy frame with
4 bicycle wheels.
1901:
Henry Ford wins high-profile car race
in Grosse Pointe, Mi.
1903: Ford Motor Company incorporated
with 11 original investors. The original
Model A "Fordmobile" is introduced
- 1,708 cars are produced.
1904: Henry Ford teams up with Harvey
Firestone of Firestone Tires
1906: Ford becomes the top selling brand
in the US, with 8,729 cars produced.
1908: Model T is introduced. 15 million
are produced through 1927.
1911:
Ford opens first factory outside North
America – in Manchester, England.
1913:
The moving Assembly line is introduced
at Highland Park assembly plant, making
Model T production 8 times faster.
1914: Ford introduces $5 workday minimum
wage – double the existing rate.
1918:
Construction of the Rouge assembly complex
begins.
1919:
Edsel Ford succeeds Henry as Company
President.
1921:
Ford production exceeds 1 million cars
per year, nearly 10 times more than
Chevrolet - the next biggest selling
brand.
1922:
Ford purchases Lincoln Motor Company
for US $8 million.
1925:
Ford introduces Ford Tri-Motor airplane
for airline services.
1926:
Ford Australia is founded in Geelong,
Victoria, Australia.
1927: Model T production ends, Ford
introduces the next generation Model
A, from the Rouge complex.
1929: Ford regains production crown,
with production peaking at 1.5 million
cars.
1931: Ford and Chevy brands begin to
alternate as US production leaders,
in battle for automobile sales during
the Great Depression.
1932: Ford introduces the one-piece
cast V8 block.
1936: Lincoln Zephyr is introduced.
1938: The German consul at Cleveland
gave Henry Ford the award of the Grand
Cross of the German Eagle, the highest
medal that Nazi Germany could bestow
on a foreigner.
1939: Mercury division is formed to
fill the gap between economical Fords
and luxury Lincolns. Operated as a division
at Ford until 1945.
1941:
The Lincoln Continental is introduced.
Ford begins building general purpose
"jeep" for the military. First
labor agreement with UAW-CIO covers
North American employees.
1942:
Production of civilian vehicles halted,
diverting factory capacity to producing
B-24 Liberator bombers, tanks, and other
products for the war effort.
1943: Edsel Ford dies of cancer at the
age of 49, Henry Ford resumes presidency.
1945: Henry Ford II becomes president.
1945: Lincoln and Mercury are combined
into a single division.
1946: The Whiz Kids, former US Army
Air Force officers, are hired to revitalize
the company. Automobile production resumes.
1947: Henry Ford dies of cerebral hemorrhage
at the age of 83; Henry Ford II becomes
new chairman.
1948: F-1 Truck introduced. Lincoln
Continental is introduced.
1949: The '49 Ford introduces all-new
post-war era cars. The "Woody"
station wagon is introduced.
1954: Thunderbird introduced as a personal
luxury car with a V8. Ford begins crash
testing, and opens Arizona Proving Grounds.
1956: $10,000 Lincoln Continental Mark
II introduced. Ford goes public with
common stock shares.
1957: Ford launches the Edsel brand
of automobiles in the fall of 1957 as
1958 models. Ford is top selling brand,
with 1.68 million automobiles produced.
1959: Ford Credit Corporation formed
to provide automotive financing. Ford
withdraws the 1960 model Edsels from
the market in November 1959.
1960: Ford Galaxie and Ford Falcon introduced.
1960:
Robert Mcnamara is appointed President
of Ford by Chairman Henry Ford II.
1960: Ford President Robert McNamara
appointed Secretary of Defense by President
elect John F. Kennedy.
1964: Ford Mustang and Ford GT40 introduced.
1965: Ford brand US sales exceed 2 million
units.
1965:
Ford Galaxie 500 LTD debuts, Proven
to be quieter than a Rolls Royce.
1966:
Ford Bronco sport utility vehicle introduced.
1967: Ford of Europe is established.
1968: Lincoln Mark Series is introduced
as the company's first personal luxury
car to compete with the Cadillac Eldorado.
1970: Ford establishes Asia Pacific
operations.
1973:
Ford US brand sales reaches an all time
high of 2.35 million vehicles produced.
1975: Ford Granada and Mercury Monarch
introduced.
1976: Retractable seat belts introduced.
1979:
Ford acquires 25% stake in Mazda.
1981: The Lincoln Town Car and Ford
Escort are introduced.
1984: Ford Tempo and Mercury Topaz are
introduced.
1985:
Ford Taurus introduced with dramatic
and revolutionary "aero design"
styling, along with Ford Aerostar minivan.
1987: Ford acquires Aston Martin Lagonda
and Hertz Rent-a-Car.
1988: Ford Festiva, built in Korea by
Kia is introduced.
1989:
Ford acquires Jaguar. Mazda MX-5 Miata
is unveiled.
1990:
Ford Explorer is introduced, turning
the traditionally rural and recreational
SUV into a popular family vehicle.
1992: Ford Taurus becomes America's
top selling car.
1993: Ford introduces dual airbags as
standard equipment.
1994: Ford Tempo and Mercury Topaz are
discontinued - replaced by Ford Contour
and Mercury Mystique.
1994:
Ford Aspire replaces Festiva.
1995: Front wheel drive 4.6L V8 Lincoln
Continental is introduced.
1996:
Ford certifies all plants in 26 countries
to ISO 9000 quality and ISO 14001 environmental
standards. The V12-powered Jaguar XJS
is discontinued.
1996:
Ford increases investment stake in a troubled
Mazda Corporation to a controlling interest
of 33.4%.
1997: Full size 4-door SUV Ford Expedition
introduced replace the Ford Bronco.
Lincoln Navigator and Mercury Mountaineer
introduced.
1997: Ford Aerostar is replaced by Ford
Windstar. Ford Probe, and Ford Aspire
are discontinued.
1999: Ford acquires Volvo car division
from Volvo. Bill Ford becomes Chairman
of the Board.
1999: Jaguar Racing Formula One team
is formed, with Jackie Stewart at the
helm.
2000: Land Rover acquired from BMW.
Lincoln LS and Jaguar S-Type are introduced.
2001:
Retro-styled Ford Thunderbird is reintroduced,
based on the Lincoln LS/Jaguar S-Type
DEW98 platform.
2002: The Lincoln Continental is discontinued
after a roughly fifty year run. Jaguar
X-Type is introduced.
2003: Ford Motor Company's 100th Anniversary.
The Ford GT was released to celebrate
this occasion.
2004: Jaguar Racing team sold to Red
Bull GmbH.
2004: The Ford Escape Hybrid, the first
gasoline-electric hybrid SUV, is introduced.
2005: Ford Mustang redesigned with retro
styling reminiscent of the 1960s models.
Ford Five Hundred and Ford Freestyle
introduced. Mercury Sable production
ends.
2006: Ford Taurus ends production after
a 20-year run. Ford Fusion, Mercury
Milan, and Lincoln Zephyr introduced.
2006:
Ford announces major restructuring program
The Way Forward. Bill Ford steps down
as CEO, remains as Executive Chairman.
Alan Mulally elected President and CEO.
2006:
Ford mortgages all assets to raise $23.4
billion cash in secured credit lines,
in order to finance product development
during restructuring through 2009.
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