1. Current Company Analysis on
Ford Motor Company
"Make Every Day Exciting"
Presented By :-
Devyani Vashisht
Pooja Kadam
Sneha Drolia
Tushar Nijhawan
Anshu Raj
Rudhir Kakoti
Renu Yadav
Krunal Thakkar
Nishit Rastogi

2. Ford’s History
• Ford set out to build a car which
everyone could afford to buy .
• The attraction of the Model T was
that its price never increased.
• Costing $1200 in 1909, the price in
1928 was only $295.
• By 1928 Ford was producing more
than one car per minute.

3. Evolution of Ford’s Logo

4. 1929 model AA
1931 model
Tudor Sedan
1928 model A
New ford fiesta
Ford fiesta
1946 ford sedan
Ford
Ikon
Endeavour

5. FORD ENTERING INTO INDIA

6. • Ford has been in India since 1907, but received
government approval to forge a 50:50
partnership with Mahindra and Mahindra in
1995.
• In 1998, got the green signal to increase its stake
in the joint venture to 92.18 percent and the
company was re-christened as Ford India Pvt. Ltd.

7. • special cell called the "Environmental Management
system”
• Apart from this , Ford India Ltd. has always been vital
in looking into the matters of social commitments.
• tries to employ locals in the manufacturing unit.

8. 10 March 2014

9. • Aggressively restructure to operate profitably at
the current demand and changing model mix.
• Accelerate development of new products their
customers want and value.
• Finance their plans and to improve the balance
sheet.
• Work together efficiently as one team.

10. • An exciting and viable FORD, delivering profitable
growth for all .
• To sell all its car manufactured under its name by
satisfying all the needs and demand of its
customers.
• To gain operational efficiency in its work place

11. CURRENT AFFAIRS
•
•
•
•
•
Ford India looking at new small car model.
Ford India sales up 19% in November in 2013.
Ford to inspect 386,000 cars for steering trouble.
India won’t get the new Ford Mustang.
Ford India sales up 51% in September by the
launch of Ford Ecosport.

12. Last 5 Year Analysis

13. Ford Motors Financial Performance
70000
60000
50000
40000
NET SALES(cr)
NET PROFIT(cr)
30000
RoNW
20000
10000
0
FY08
FY09
FY10
FY11
FY12

14. Important Ratios
3
2.5
2
D/E ratio
1.5
Current Ratio
1
Fixed Assets
0.5
Fixed Assets
Current Ratio
D/E ratio
0
FY08
FY09
FY10
FY11
FY12

15. Factor Analysis for Ford Motors
Rotated Component Matrix
Components
Service
User Friendly
Mileage
Spare Parts Cost
Resale Value
Brand Value
After Sales Service
Safety
Performance
Brand Value
.888
.777
.783
.924
.847
.913

16. Current Analysis

17. INCOME STATEMENT

18. 2013 BUSINESS ENVIRONMENT
OVERVIEW
Global
• 2013 global economic growth around 2% .
• Global industry sales expected to be about 84 million
units this year, up 3.8% compared with 2012 .
Americas
• U.S. economic growth projected in the 1.5% - 2%
range; short-term fiscal resolution pushes policy
uncertainty into First Quarter 2014.
• U.S. industry sales recovery supported by improving
housing sector and replacement demand.

19. Europe
• Incoming data suggest Euro Area economic and
industry conditions have begun to stabilize and
are consistent with a likely modest recovery .
• The European Central Bank stated interest
rates will stay low for an extended period .
Asia Pacific Africa
• China’s economic growth stabilizing in the 7.5%
range .
• Challenges remain in India with economic
growth below trend in the near term .

21. BALANCE SHEET AS OF 30-09-2013

22. COMPANY’S EQUITY & CREDIT RATING
• At September 30, 2013, Total equity attributable to Ford
Motor Company was $20.5 billion, an increase of about
$4.6 billion compared with December 31, 2012.
• The company’s short-term and long-term debt is rated
by four credit rating agencies designated as nationally
recognized statistical rating organizations (“NRSROs”)
by the U.S. Securities and Exchange Commission:
DBRS Limited (“DBRS”);
Fitch, Inc. (“Fitch”);
Moody’s Investors Service, Inc. (“Moody’s”); and
Standard & Poor’s Ratings Services, a division of
The McGraw-Hill Companies, Inc. (“S&P”).
On September 6, 2013, S&P raised the ratings of Ford and Ford Credit to BBB- from
BB+, both with a stable outlook.

23. DERIVATIVE FINANCIAL INSTRUMENTS
AND HEDGING ACTIVITIES
To manage various risks, the company has entered into
various derivative contracts:
• Foreign currency exchange contracts, including forwards
and options, that are used to manage foreign exchange
exposure.
• Commodity contracts, including forwards and options,
that are used to manage commodity price risk.
• Interest rate contracts including swaps, caps, and floors
that are used to manage the effects of interest rate
fluctuations and
• Cross-currency interest rate swap contracts that are
used to manage foreign currency and interest rate
exposures on foreign-denominated debt.

24. FORD PLANS
• Ford plans to launch 23 new cars, and 11000 new jobs in
2014.
• Ford plans to extend its momentum in North America,
which currently drives the vast majority of Ford's profits,
with 16 new vehicle launches .
• Ford aims to introduce two new versions of its highmileage EcoBoost engine family.
• Ford will invest $1.1 billion to retool and expand
its Kansas City assembly plant, which will also add more
than 2,000 jobs -- 1,000 of those jobs will be to help
support the expected strong demand for its next
generation F-150.

25. • First new launch is FORD MUSTANG- OFFICIAL CAR of
2014 International CES.
• Ford Mustang remains to be sports car icon and most
recognizable car ever.
• Ford F150 Tremor is first ever eco-boost powered
sport truck that address the need of street truck.
• People looking forward for high performance V8
power and V6 fuel efficiency.
• FX Appearance Package with an eco-boost
engine and a launch-optimized 4.10 rear axle – the
shortest final drive ratio offered in an eco-boost F150 – helping provide customers with fast
acceleration.

26. Shortcomings
•Narrow product portfolio.
•Less emphasis on compact cars.
•Less comfort, Suspension, hard
steering, Look, Design, Driving.
•Lacking in Services.
•Uncomfortable Seats.

27. Example :
•Ford Fiesta: The main complaint from the driver`s
viewpoint is that there is no area for the left foot
and therefore one has to place it under the clutch
pedal.
•Sec Gen Ford Focus: Lack of spack between head
room at back seat.
•Maintanence Cost.
•Image.

29. Future Endeavours:
•
•
•
•
•
1> Creation of the fuel conducive cars.
2>Development of Hybrid vehicles.
3>Circumstances in India and China markets.
4>Increasing demand for duel fuel vehicles.
5>Capitalizing on the models exclusively
designed for different markets e.g. ford Ikon
for India.

30. Thank you

31. Questions??