Ford Motor Company - PowerPoint PPT Presentation

1 / 9
About This Presentation
Title:

Ford Motor Company

Description:

Hailed as the industry's newest auto baron ... Ford Mustang Cobra had to cancel entire 2000 model. Quality's Cost. Lousy Quality results in: ... – PowerPoint PPT presentation

Number of Views:610
Avg rating:3.0/5.0
Slides: 10
Provided by: Del8156
Category:
Tags: company | ford | motor | mustang

less

Transcript and Presenter's Notes

Title: Ford Motor Company


1
Ford Motor Company
  • Jacqui Deegan
  • Chris Corey
  • Matt Higgins

2
Ford Motor Co.
  • In 1999, Jacques A. Nassar became the new CEO of
    Ford Motor, Co.
  • Hailed as the industrys newest auto baron
  • Ford was leading its competitors and held a large
    portion of the market.

3
FordWhy Its Worse Than You Think
  • A few years after Nassar became CEO, quality and
    safety concerns are surfacing as an issue at
    Ford.
  • A year early, Ford incurred the disaster with the
    Explorer and Bridgestone/Firestone Inc. and was
    still feeling severe ramifications.
  • The tire scandal is only the most public crisis
    confronting Nassar. Ford is suffering from a
    series of embarrassing quality glitches, costly
    product delays and declining productivity.

4
Problems Ford Faces
  • Internal
  • Cultural changes
  • Extreme overhauling
  • Removing automatic promotions and seniority
  • Low employee morale
  • Transforming Ford from a global auto maker to a
    global company
  • Nassar losing support of employees, trust of
    consumers and confidence of Wall Street.
  • External
  • Slowing economy
  • Decreasing market share
  • Industrial trends

5
Problems Ford Faces Cont.
  • Originally well positioned
  • Firestone crisis
  • Suspended share buyback
  • Lawsuits and lost sales
  • Decreasing margins and market share
  • Internal quality issues

6
Examples of Fords Poor Quality
  • of recalls
  • Ford Focus 6
  • Ford Escape 5
  • Ford Explorer 2
  • Ford Mustang Cobra had to cancel entire 2000
    model

7
Qualitys Cost
  • Lousy Quality results in
  • Sales suffer if car perceived as unsafe
  • Higher warranty costs
  • Less resale value
  • Ford has a huge cost disadvantage compared to
    competitors
  • Toyota - 1800/car advantage because of greater
    efficiency

8
Possible Reasons for Poor Operations
  • With Ford employees concentrating on adapting to
    Nassers fast paced cultural revolution, more
    errors have occurred
  • Employee morale has suffered
  • Emphasis on cutting costs caused Ford to lose
    experienced employees due to buyouts
  • Open management positions
  • filled by outsiders
  • Evaluation system

9
What can Ford do to Improve its Operations?
  • For Six Sigma to be implemented, time is required
  • It is worth it for a product to spend extra time
    in production instead of recalling 53,000 SUVs
  • Improve employee morale
  • Change new employee
  • evaluation system
  • Committee to establish
  • criteria to be promoted
Write a Comment
User Comments (0)
About PowerShow.com