Ford is in Troubled US Operations

Ford is in Troubled US Operations

Ford is currently facing some troubles in its operations. It might be doing fairly well overseas but is having very poor operations in the United States.

Latest reports say that Ford’s Volvo vehicle may be bought by German automaker BMW. According to Merrill Lynch, Ford could sell its premium brands, which also include Jaguar and Land Rover, at an estimated cost of billion.

With .2 billion as the cost of US operations for the first three months this year, ford lost almost billion. Revenue of billion for the first quarter was achieved on its overseas units which include South America, Europe, and Asia. Operating income of 1 million was also achieved. And if the operations of the premium group are added, their revenue would rise to billion and operating income could reach 0 million.

Part of the US arm of the company is many of Ford’s legacy problems with its units. Majority are on retirement, pension, and health-care costs. And most of the company’s debt is in its financial services operation. Ford’s balance sheet depicted 7 billion of the 7 billion.

DaimlerChrysler (DCX) has just halted its US operations. There is really no other way to look at the sale of Chrysler to minimize Cerberus fund operation.

It is about time that Ford should do the same. According to an article in Business Week, Alan Mulally, the company’s new CEO, is having some difficulty at present as regards to Ford’s fixed management structure. Restructuring the company may solve some of that.

Shareholders, including the Ford family, could earn something. This could be another benefit of Ford’s breaking off international operations. In the first three months in the current year, BMW has reached the revenue of an estimated billion. The company, however, was good in terms of profit as well as its stock.

The UAW would have very little bargaining power this Fall Season due to the very little left for Ford in America beyond union contracts, debt, and continuously declining revenue.

Ford has to be strong or else they will not be able to make it. Both the management and its employees need to focus in immediately solving this problem.

About Ford Motor Company

An American multinational corporation, Ford Motor Company, based on the worldwide vehicle sales, is the third largest automaker in the world. Maker of quality Ford oxygen sensor, Ford ranked seventh as an American-based company in the 2007 Fortune 500 list. This was based on the company’s global revenues of 0.1 billion. Ford produced about 6.6 million automobiles and employed about 280,000 employees to its nearly 100 plants and facilities around the world in 2006.

Founded by Henry Ford in June 16, 1903, the company now has several global brands. These include Lincoln and Mercury of the US, Jaguar and Land Rover of the UK, and Volvo of Sweden. The company also owns Mazda’s one-third controlling interest.

About BMW

BMW is the abbreviation for Bayerische Motoren Werke or Bavarian Motor Works, in English. This German company is an independent manufacturer of automobiles and motorcycles. With the English company slogan “The Ultimate Driving Machine”, BMW is from where the MINI and Rolls-Royce car brands came. It was also the owner of the Rover.

About DaimlerChrysler

DaimlerChrysler AG is a German car corporation and the fifth largest car manufacturer all over the world. It manufactures trucks and automobiles. It also provides financial services through its DaimlerChrysler Financial Services arm. The major stake in aerospace group EADS is also owned by the company.

Established in 1998, DaimlerChrysler was formed when Mercedes-Benz manufacturer Daimler-Benz of Baden-Württemberg merged with Chrysler, a US-based corporation. Unfortunately, the fuser was not able to produce the trans-Atlantic automotive powerhouse dealmakers had anticipated for. On May 14, 2007, DaimlerChrysler made an announcement that it would sell Chrysler to a private equity firm in New York, the Cerberus Capital Management. It specializes in restructuring troubled companies and effectively unwinding the original transaction.

The failed German merger company will use the name Daimler AG, with pending shareholder approval. Chrysler Holdings, a US company will be owned by a private firm.

Chrysler, Dodge, Jeep, Mercedes-Benz, Smart, Maybach, and GEM are the cars and truck brands that DaimlerChrysler manufactures. Moreover, it also provides parts and accessories in the market under the brand name Mopar.

About Merrill Lynch

Through its subsidiaries and affiliates, Merrill Lynch & Co., Inc., provides global capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services. With headquarters located in New York City, the firm is one of the well known and recognizable names in financial services. It has a 34-storey building at the Four World Financial Center in Manhattan.

Zeke Gervis has a degree in Human Resource Management. He is an F1 fanatic and is a collector of racing memorabilias. At present, he enjoys working at a consulting firm in Iowa.

This is another video showing various steps in the manufacture of the Ford Tri-motor in Dearborn, Michigan. 199 of these great ships were built on the late 1920’s and early 1930’s. They were the worlds first all-metal airliners.
Video Rating: 4 / 5

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