Ford has remained above water during this current recession. In 2009, the company's profits of $2.7 billion put it ahead of GM's sales for the first time in 80 years. This success is due to Ford's CEO, Alan Mulally, who joined the company in 2006. When he took over, the company was in shambles and was in desperate need of a new image. Mulally did exactly what the automaker needed. He shifted the company into a more prosperous and successful company, just like how it was many decades ago. To do so, he urged quality, value, and customer satisfaction as the main concerns for Ford. He has also created a strategic plan for the company to help it stay on a steady path. According to Mulally, "Ford plans to streamline the number of models or "nameplates" it produces to about 25 to 30 from the 97 models it used to build." This change can help make costs lower and the production process much simpler. Fewer models in production will allow Ford to have a greater focus on the quality of their vehicles.
In addition, Ford's CEO has said that there is a great potential to improve the combustion engine, including both the petrol and diesel. Along with this, Ford is pursuing electric vehicles and hydrogen technology. According to Mulally, this is the reason why college students are, "Choosing to study engineering at the University level, adding that the changing environmental focus and technological needs, will encourage people to enter the field and provide the necessary skill set." This demand is fueling the trend for many college students to become engineers as there is a very high recruitment rate for them upon their graduation. I expect that this demand will continue as this energy crisis continues.
I can sense that Ford's CEO will continue to help the brand keep its name. The company has proven that it is dedicated to building dependable cars and is willing to maintain its steady path. I believe that Ford is blessed to have a CEO that was prepared for the future and able to guide them through one of the toughest economic disasters to note. Thier commitment to improving themselves will help reestablish their name and make them a favored automaker among consumers.
Source: http://online.wsj.com/article/SB10001424052748704654004575517523508773954.html?KEYWORDS=auto+industry
Ford has been showing its strength ever since it didn't ask for a government bailout. It is pretty interesting that one person can change such a large company around in just a few years. Ford seems to be following the "quality over quantity" saying with such a reduction in car models. I agree that a lot of college students are going into engineering because of great employment prospects, as well as high salaries. Auto companies will always need engineers to design increasingly fuel efficient cars. I think Ford is in a very good spot in the auto industry.
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