Events on January 5 in history

The Ford Motor Company announces an eight-hour workday, but entitlement to the higher was subject to various restrictions.[1]

Ford Motor Company: An Automotive Pioneer with a Global Legacy

Ford Motor Company, universally recognized simply as Ford, stands as an iconic American multinational automobile manufacturer. Headquartered in Dearborn, Michigan, United States, Ford's expansive operations span continents, producing a diverse range of vehicles for consumers and businesses worldwide.

Founding and Core Brands

The company's illustrious journey began with its visionary founder, Henry Ford, who officially incorporated Ford Motor Company on June 16, 1903. From its inception, Ford aimed to make the automobile accessible to the masses, revolutionizing transportation and industry.

• Ford Brand: Under its flagship Ford brand, the company manufactures and sells a comprehensive array of automobiles, including passenger cars, sport utility vehicles (SUVs), trucks, and commercial vehicles. This brand is known for its durable and widely accessible vehicles.
• Lincoln Brand: Complementing its mainstream offerings, Ford also produces luxury cars and SUVs under its premium Lincoln luxury brand. Lincoln models cater to a discerning clientele seeking enhanced comfort, sophisticated design, and advanced features.

Global Reach and Strategic Investments

Ford's global footprint extends beyond its primary brands through strategic investments and joint ventures, fostering local production and market penetration in key regions.

Ownership Stakes:

Ford maintains significant minority stakes in other automotive entities, demonstrating its interconnectedness within the global industry.

• An 8% stake in Aston Martin, the renowned British luxury sports car manufacturer.
• A 32% stake in China’s Jiangling Motors Corporation (JMC), a prominent automotive manufacturer in China specializing in commercial vehicles and SUVs.

Joint Ventures:

To effectively navigate diverse international markets and production demands, Ford has established various joint ventures, combining resources and expertise with local partners.

• Changan Ford: A partnership in China, crucial for Ford's growth in the world's largest automotive market.
• Ford Lio Ho: A joint venture operating in Taiwan, serving the local market with a range of Ford vehicles.
• AutoAlliance Thailand: A manufacturing collaboration in Thailand, producing vehicles primarily for the Asia-Pacific region.
• Ford Otosan: A significant joint venture in Turkey, recognized for its production of commercial vehicles and engines, serving both domestic and export markets.
• Ford Sollers: A collaboration in Russia, focusing on local production and sales to meet regional demands.

The Legacy of Fordism and Industrial Innovation

A cornerstone of Ford Motor Company's enduring legacy is its pioneering contribution to modern industrial production. Henry Ford's ingenuity led to the development and implementation of methods for large-scale manufacturing and the meticulous management of an industrial workforce. This revolutionary approach, characterized by elaborately engineered manufacturing sequences and the iconic moving assembly line, became globally renowned by 1914 as Fordism.

Fordism dramatically transformed the automotive industry and, by extension, global manufacturing. It emphasized efficiency, standardization, and a division of labor that significantly reduced production times and costs. This innovation made the automobile, particularly the ubiquitous Model T, affordable for the average consumer, fundamentally changing societal mobility and economic structures worldwide.

Strategic Evolution and Brand Portfolio Shifts

Ford Motor Company has navigated a complex corporate landscape, marked by both strategic acquisitions and divestments to streamline its operations and focus on core strengths. While the company went public and listed on the New York Stock Exchange in 1956, its governance structure maintains a unique aspect: the Ford family, despite holding a minority ownership, retains a majority of the voting power through special Class B shares. As of the end of 2010, the Ford family still held 40 percent of these crucial voting rights, ensuring their continued influence over the company's strategic direction.

Throughout its history, Ford has adjusted its brand portfolio:

• Divestment of UK Subsidiaries: Ford acquired the esteemed British luxury marques Jaguar in 1989 and Land Rover in 2000. However, as part of a strategic realignment, both brands were sold to the Indian automaker Tata Motors in March 2008.
• Sale of Volvo: Ford also owned the Swedish automaker Volvo, renowned for its safety innovations, from 1999 to 2010 before its sale to Geely Holding, a Chinese multinational automotive company.
• Discontinuation of Mercury: In 2011, Ford made the decision to discontinue the Mercury brand, which had marketed entry-level luxury cars in key markets including the United States, Canada, Mexico, and the Middle East since 1938. This move allowed Ford to consolidate resources and focus on its core Ford and Lincoln brands.

Market Position and Resilience Through Challenges

Ford holds a prominent position within the global automotive industry. Based on 2015 vehicle production figures, Ford was the second-largest U.S.-based automaker, trailing only General Motors. Globally, it ranked as the fifth-largest automaker, following industry giants such as Toyota, Volkswagen, Hyundai, and General Motors. In the European market, Ford was the fifth-largest automaker at the close of 2010.

Navigating the 2008 Financial Crisis

The period of the 2007–08 financial crisis presented unprecedented challenges for the entire automotive sector, pushing many manufacturers to the brink of collapse. During this critical time, Ford Motor Company uniquely distinguished itself by avoiding a direct government bailout, unlike its competitors General Motors and Chrysler LLC. This was largely due to proactive measures taken by Ford years prior, including mortgaging nearly all its assets to secure a $23.5 billion line of credit in 2006. While President George W. Bush announced an emergency financial rescue plan, making $13.4 billion immediately available to the auto industry, Ford famously declined to draw from these government funds, preferring to navigate the crisis independently on its secured liquidity.

Ford Motor Company has since demonstrated remarkable resilience, returning to sustained profitability. This recovery was underscored by its strong financial performance, leading to its ranking as the eleventh-largest overall American-based company on the 2018 Fortune 500 list, reflecting global revenues of $156.7 billion in 2017. In 2008, a year of significant global production, Ford manufactured approximately 5.532 million automobiles and employed around 213,000 individuals across roughly 90 plants and facilities worldwide, showcasing its expansive global operational scale.

Frequently Asked Questions (FAQ)

Who founded Ford Motor Company and when?

Ford Motor Company was founded by Henry Ford and officially incorporated on June 16, 1903.

What is "Fordism"?

Fordism refers to the innovative methods for large-scale manufacturing and industrial workforce management introduced by Henry Ford, typified by the moving assembly line, which became globally recognized by 1914 for its efficiency and impact on mass production.

What are Ford's primary brands today?

Ford's primary vehicle brands today are the mainstream Ford brand and the luxury Lincoln brand.

How did Ford Motor Company handle the 2008 financial crisis differently from other U.S. automakers?

Ford uniquely avoided a direct government bailout during the 2008 financial crisis, having secured a substantial private line of credit by mortgaging its assets in 2006, allowing it to navigate the downturn without government loans.

What are some major brands Ford has previously owned?

Ford has previously owned significant automotive brands such as Jaguar, Land Rover, and Volvo, all of which were later divested. The Mercury brand was also discontinued in 2011.