The Turnaround at Ford
Running head: CASE ANALYSIS – A TURNAROUND AT FORD 1
Case Analysis – A Turnaround at Ford Jerald Peet Saint Leo University
THE TURNAROUND AT FORD 2
The story of Ford (F) in the last couple of years is as impressive as Ford 's history. Ford is the second largest U.S.-based automaker, second only to General Motors (GM). It is also fifth largest in the world. Over the last decade, it has brought itself back from the brink of bankruptcy to winning back consumers and investors.
The U.S. auto industry took a heavy beating in the years leading up to the financial crisis of 2008 and 2009. Ford stood out from its two main rivals, GM and Chrysler, by not taking government bailout money to sustain its operations. This was a bold move given the fact that company losses were at a record high $14.6 billion in 2008. In 2009, however, just one year after GM and Chrysler started receiving bailouts; Ford posted its first profits in four years.
Under the leadership of current CEO Alan Mulally, the company has turned around its fate towards growth now and further into the future. Despite being viewed as an outsider from Boeing (BA), Mulally played an instrumental role in transforming Ford into a significantly better company.
He led the company through some very tough decisions. The previous culture took more pride in its luxury European brands that were not making any money. It was clear to him that it was time to focus on Ford 's own brand. High-end marks like Aston Martin and Mercury were the first to go. Jaguar and Land Rover were sold off to Tata Motors. Volvo was purchased by Chinese carmaker Geely for $1.5 billion. Ford 's major ownership stake of Mazda
Case Analysis – A Turnaround at Ford Jerald Peet Saint Leo University
THE TURNAROUND AT FORD 2
The story of Ford (F) in the last couple of years is as impressive as Ford 's history. Ford is the second largest U.S.-based automaker, second only to General Motors (GM). It is also fifth largest in the world. Over the last decade, it has brought itself back from the brink of bankruptcy to winning back consumers and investors.
The U.S. auto industry took a heavy beating in the years leading up to the financial crisis of 2008 and 2009. Ford stood out from its two main rivals, GM and Chrysler, by not taking government bailout money to sustain its operations. This was a bold move given the fact that company losses were at a record high $14.6 billion in 2008. In 2009, however, just one year after GM and Chrysler started receiving bailouts; Ford posted its first profits in four years.
Under the leadership of current CEO Alan Mulally, the company has turned around its fate towards growth now and further into the future. Despite being viewed as an outsider from Boeing (BA), Mulally played an instrumental role in transforming Ford into a significantly better company.
He led the company through some very tough decisions. The previous culture took more pride in its luxury European brands that were not making any money. It was clear to him that it was time to focus on Ford 's own brand. High-end marks like Aston Martin and Mercury were the first to go. Jaguar and Land Rover were sold off to Tata Motors. Volvo was purchased by Chinese carmaker Geely for $1.5 billion. Ford 's major ownership stake of Mazda
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