A bit of American history


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Ford Motor Company: The Pride of Michigan

The Ford Motor Co. is a well-known
international player in the automotiveFord's tactics worked. Employee turnover
industry. It is noted for models such as thesignificantly dropped, and production
Lincoln and Mercury, as well as the Jaguarincreased significantly. Sales also
and  Land  Rover  automobiles.increased, which meant Ford can now sell more
units at lower prices. Ford also established
The company is based in Dearborn, Michigan.the Ford brand name more by coming up with a
The company was first established in June 16,system of dealers that franchised the Ford
1903 by Henry Ford. It has been controlled byname.
Ford's descendants for over a century since
its  founding.The Ford Motor Co. officially expanded
internationally when it established Ford of
Early  YearsCanada in 1904. Seven years later, in 1911,
Ford opened several plants in Europe and in
Ford began his venture into the automotiveAustralia. By 1920, Henry Ford's firm
industry with only US$28,000 as capital,controlled 50% of the market share with its
which he gleaned from several investors.Model T cars. Henry Ford himself contributed
Interestingly, the founders of the Dodgeto the rising fame of his brand name by
Brothers Motor Vehicle Co. - John and Horacejoining other pacifists in 1915 when they
Dodge  -contributed  to  Ford's  capital.tried  to stop the First World War in Europe.
Ford gave his products a designation ofDevelopments During and After World War I and
letters, with the first one designed Model AWorld  War  II
in 1903. Ford's first six-cylinder car was
designated as Model K, which had a price ofAlthough he had earlier stated that he did
US$2800. The Ford model was the mostnot want to make profits from war, the Ford
expensive automobile at that time, as itsMotor Co. eventually handled production of
rivals sold for prices significantly lowerthe B-24 Liberator bomber for the war effort,
than that. For example, the Successprompting it to build the Willow Run plant in
automobile  sold  for  a  very  low  US$250.April 1941. Beginning August 1943, Ford's
assembly lines worked 24 hours a day to roll
Ford did not have his own factory when heoff one complete and functional B-24 in just
produced his first automobiles. He soonan hour, with pilots waiting for takeoff in
acquired his own factory in Piquette Avenuecosts while the bombers were rolled off the
in Michigan, from which he produced aboutproduction  line.
18,000 units of Model T automobiles in 1909.
High demand for the Model T prompted Ford toThe stress of the situation would ultimately
move his operations to a larger plant inlead to the death of Edsel Ford, who was
Highland Park, from which over 69,000 unitsnamed as Henry Ford's successor in 1919, in
of  the Model T were made and sold to buyers.the spring of 1943. Henry once again assumed
control of the company during these trying
Ford also came up with a moving assembly linetimes.
in 1913, the first of its kind in the whole
world. Ford had his engineers build up on theIn 1956, Ford went public under the
basic techniques of assembly line and massleadership of Henry Ford II, the son of Edsel
production in a bid to increase productionand Eleanor Ford, who was appointed president
and make improvements to assembly processes.in 1945 by Henry Ford himself. Despite being
Because it now only took 2 hours and 40public, the Ford family acquired enough
minutes to assemble a chassis, the companySpecial B preferred stocks to keep a
was able to output more than 200,000 units ofcontrolling  interest  of 40% in the company.
the  Model  T  in  1913.
Current  Years
Workforce  Problems  and  Rise  to  Fame
The Ford family still controls 40% of the
Ford's improvements to the assembly linecompany through the preferred stocks, and
caused high turnovers within his factoryabout 5% of the ordinary shares of the
workforce, because it became strenuous to thecompany.
employees who were used to the earlier
processes to adjust to the faster-pacedThe company is currently under restructuring.
assembly line processes. However, Ford foundIn fact, the company had announced the
a way by increasing the workers' pay to twicemortgaging of all of its assets in 2006 in
the original sum, and cutting down on workorder to earn about US$23.4 billion to
hours by an hour. He also limited work daysrefinance the rehabilitation until 2009.
up  to  Friday.



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