Ford and Toyota Analysis

Topics: Ford Motor Company, Toyota, General Motors Pages: 4 (1055 words) Published: October 13, 2013
1a. Ford Motor Company was incorporated in Delaware in 1919. Ford acquired the business of a Michigan company, also known as Ford Motor Company which incorporated in 1909 to produce and sell automobiles designed and engineered by Henry Ford. They are one of the world’s largest producers of cars and trucks. Ford operates in two sectors, Automotive and Financial Services. In the Automotive sector reportable segments are Ford North America, Ford South America, Ford Europe, and Ford Asia Pacific Africa. In the Financial Services sector reportable segments are Ford Motor Credit Company and Other Financial Services.

1b. Factors affecting Ford’s profitability include:

Wholesale unit volumes
Margin of Profit on each vehicle sold – which in turn is affected by many factors, such as: Market factors – volume and mix of vehicles and options sold, and net pricing (reflecting, among other factors, incentive programs: Cost of components and raw materials necessary for production of vehicles Costs for customer warranty claims and additional service actions Costs for safety, emissions and fuel economy technology and equipment A high proportion of relatively fixed structural costs, so that small changes in wholesale unit volumes can significantly affect overall profitability General economic conditions and other uncontrollable external factors affect the automotive industry as a whole 1c. Toyota commenced operations in 1933 14 years after Ford. Toyota operates in the Automotive and Financial sectors as does Ford, with reportable segments in Japan, North America, Europe and Asia NEED MORE Toyota Motor Corporation is a limited liability, joint-stock company incorporated under the Commercial Code of Japan and continues to exist under the Corporation Act. Toyota commenced operations in 1933 as the automobile division of Toyota Industries Corporation (formerly, Toyoda Automatic Loom Works, Ltd.). Toyota became a separate company on August 28, 1937. In 1982, the Toyota Motor...
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