A bit of American history


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Ford Motor Company: The Pride of Michigan

The Ford Motor Co. is a well-knownFriday.
international player in the automotiveFord's tactics worked. Employee turnover
industry. It is noted for models such assignificantly dropped, and production
the Lincoln and Mercury, as well as theincreased significantly. Sales also
Jaguar and Land Rover automobiles.increased, which meant Ford can now sell
The company is based in Dearborn,more units at lower prices. Ford also
Michigan. The company was firstestablished the Ford brand name more by
established in June 16, 1903 by Henrycoming up with a system of dealers that
Ford. It has been controlled by Ford'sfranchised the Ford name.
descendants for over a century since itsThe Ford Motor Co. officially expanded
founding.internationally when it established Ford
Early Yearsof Canada in 1904. Seven years later, in
Ford began his venture into the1911, Ford opened several plants in
automotive industry with only US$28,000Europe and in Australia. By 1920, Henry
as capital, which he gleaned fromFord's firm controlled 50% of the market
several investors. Interestingly, theshare with its Model T cars. Henry Ford
founders of the Dodge Brothers Motorhimself contributed to the rising fame
Vehicle Co. - John and Horace Dodgeof his brand name by joining other
-contributed to Ford's capital.pacifists in 1915 when they tried to
Ford gave his products a designation ofstop the First World War in Europe.
letters, with the first one designedDevelopments During and After World War
Model A in 1903. Ford's firstI and World War II
six-cylinder car was designated as ModelAlthough he had earlier stated that he
K, which had a price of US$2800. Thedid not want to make profits from war,
Ford model was the most expensivethe Ford Motor Co. eventually handled
automobile at that time, as its rivalsproduction of the B-24 Liberator bomber
sold for prices significantly lower thanfor the war effort, prompting it to
that. For example, the Successbuild the Willow Run plant in April
automobile sold for a very low US$250.1941. Beginning August 1943, Ford's
Ford did not have his own factory whenassembly lines worked 24 hours a day to
he produced his first automobiles. Heroll off one complete and functional
soon acquired his own factory inB-24 in just an hour, with pilots
Piquette Avenue in Michigan, from whichwaiting for takeoff in costs while the
he produced about 18,000 units of Modelbombers were rolled off the production
T automobiles in 1909. High demand forline.
the Model T prompted Ford to move hisThe stress of the situation would
operations to a larger plant in Highlandultimately lead to the death of Edsel
Park, from which over 69,000 units ofFord, who was named as Henry Ford's
the Model T were made and sold tosuccessor in 1919, in the spring of
buyers.1943. Henry once again assumed control
Ford also came up with a moving assemblyof the company during these trying
line in 1913, the first of its kind intimes.
the whole world. Ford had his engineersIn 1956, Ford went public under the
build up on the basic techniques ofleadership of Henry Ford II, the son of
assembly line and mass production in aEdsel and Eleanor Ford, who was
bid to increase production and makeappointed president in 1945 by Henry
improvements to assembly processes.Ford himself. Despite being public, the
Because it now only took 2 hours and 40Ford family acquired enough Special B
minutes to assemble a chassis, thepreferred stocks to keep a controlling
company was able to output more thaninterest of 40% in the company.
200,000 units of the Model T in 1913.Current Years
Workforce Problems and Rise to FameThe Ford family still controls 40% of
Ford's improvements to the assembly linethe company through the preferred
caused high turnovers within his factorystocks, and about 5% of the ordinary
workforce, because it became strenuousshares of the company.
to the employees who were used to theThe company is currently under
earlier processes to adjust to therestructuring. In fact, the company had
faster-paced assembly line processes.announced the mortgaging of all of its
However, Ford found a way by increasingassets in 2006 in order to earn about
the workers' pay to twice the originalUS$23.4 billion to refinance the
sum, and cutting down on work hours byrehabilitation until 2009.
an hour. He also limited work days up to



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