Essay Ford Motor Company Memo

Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, manufactures or distributes automobiles across six continents. It is a publicly traded company on the New York Stock Exchange. The Company has about 198,000 employees and 90 plants worldwide with the automotive brands include Ford and Lincoln. The Company also provides financial services through Ford Motor Credit Company. The revenue of the company is $136.26 billion with a net income of $20.21 billion by 2011.

* Existing assets with current book value of $6 mm. These assets will generate cash flows of either $8 mm or $8.8 mm next year, depending on whether the economy is in a recession or a boom.

In April 2000, Ford Motor Co. announced a shareholder Value Enhancement Plan (VEP) to significantly recapitalize the firm's ownership structure. Ford had accumulated $23 billion in cash reserves and under the VEP would return as much as $10 billion of this cash to shareholders. In exchange for each share currently held, the plan would give stockholders one new share plus the choice of receiving $20 in either cash or additional new Ford common shares. Shareholders electing to receive cash would be taxed on these distributions at capital gain rates. Among other things, the plan provided a means for the Ford family to obtain liquidity without having to dilute their 40% voting interest (even though they own

Grant & Co., it can be justifiable that it holds large levels of inventories. However, it must have enough cash and more liquid assets to pay for its suppliers and the procurement of resources, including payment of employee salaries, operational expenses and timely dues of interests and debts. With extra cash, the company can also invest for growth and expansion of the business and can able to share the profits of the business with its shareholders through payment of dividends. Thus, a positive cash flow is usually preferable (Clarke; Kokemuller; Williams, et

"It is doubtful if any mechanical invention in the history of the world has influenced in the same length of time the lives of so many people in an important way as the motor car." So writes an American historian, thinking of the automobile alone. But it does not stand-alone. It was the automobile factory that introduced mass production, a process that has changed the lineaments of our economic and social life more profoundly than any other single element in the recent history of civilization. Nearly everyone has heard of this process, yet few have any detailed or exact knowledge of its inception and development. Enter Henry Ford. The true answers of what inspired this Michigan farmer to develop a production process that

K-L Fashions’ balance sheet shows a company that has tremendous opportunities for investments. Allow me to explain. Any company with lots of cash is a reassurance to investors that the company can generate revenue. Their cash flows have been $272,640 in 2005, 82,540 in 2004, however their inventory increased by 7.13%, which indicates that the cash was invested in the inventory. In 2003 it was 321,390, and lastly it was 281,750 in 2002. The Cash & Cash Equivalents is trending in the right direction. Cash is king, you can’t manipulate cash. Either is there or not. Cash helps companies survive and grow. Secondly, the Accounts Receivables is trending upward. In my opinion this shows

GM’s pickup truck advantage through the first six months of the year exceeds 76,000 units. Prior to the release of its new pickup truck lines and its recent sales surge, Ford outsold GM for several years. Now GM leads Ford in the most profitable category and also battles Toyota and Nissan for midsize truck

Many companies filed bankruptcy due to the 2006 economic recession. However, Ford was able to stay afloat due to its significant changes in products it had to offer. It gained many befits through reorganizing, extending, and contracting its product line. Currently the economy is showing signs of growth and Ford is confident that it will improve on its performance and profits for years to come. Mullaly stated, “You make less money on smaller cars, but we can make a return”. This will certainly be key to Ford’s success for years to

Henry Ford incorporated Ford Motor Company on June 16, 1903 (H Staff, 2009). With 12 investors and 1000 shares, the company had spent almost all of its $28,000 cash investment by the time it sold the first Ford Model A on July 23, 1903 (F Staff, 2017). But by October 1, 1903, Ford had turned a profit of $37,000 (F Staff, 2017). Henry Ford was able to increase production thus increasing profits by inventing the first ever assembly line (H Staff, 2009). Ford operates in the stock market through the consumer durables sector and is a part of the motor vehicle industry with a market cap of $42.4 billion (FT Staff, 2017). Ford Motor Company engages in the manufacture, distribution, and sale of automobiles (CNN Staff, 2017). Ford is a globally run

Ford Motor Company is an American automaker and the world 's fifth largest automaker based on worldwide vehicle sales and is the second largest American automaker. Based in Dearborn, Michigan, a suburb of Detroit, the automaker was founded by Henry Ford, on June 16, 1903. In that same year, with 12 investors and 1000 shares, the company had spent almost all of its 28000 dollar cash investment by the time it sold the first Ford Model A on July 23 1903. By October 1 of that same year, Ford Motor Company had turned a profit of 37,000 dollars. By 1904, Ford Motor company built its first international plant in Walkerville, Ontario, right across the Detroit River from Ford’s existing facilities. The company was a separate organization with its own set of shareholders. it was created to sell vehicles not just in Canada, but also all across the British Empire (1904 current British Empire). Over the years Henry Ford Model T then put the world on wheels with a simple, affordable, and durable automobile.

Alan R Mulally, Ford’s Chief Executive, mortgaged all of the company’s assets, sold off a majority of its shares in many other companies and made job cuts in the hope to use the money to improve the fate of the company. Alan R Mulally, told the financial institutions that he plans to make Ford’s focus revolve around developing smaller, more fuel efficient vehicles in order to keep up with the foreign automotive producers, and increase domestic interest in the company’s products. After refocusing the company, Allen also introduce a new type of technology that would help Ford Motor Company appeal more to the eyes of the consumers. (Bill Vlasic, 2009)

The Ford Motor Company was founded in 1903 by Henry Ford and it is currently located in Dearborn, Michigan. Ford is in the auto making industry producing affordable cars under the brand of Ford, and luxury cars under the brand of Lincoln. Ford has a long term rating of Baa3 by Moody’s, meaning that it barely met the standard of being an investment grade and is subject to moderate credit risk. Almost all the Ford Bonds in Pimco’s portfolio have the time to maturity and duration.

* 3. Executive Summary Page 1 Introduction Page X Company Description Page X Ford’s Values Page X Ford Today Page X Strategic Focus and Plan Page X Mission Page X One Team Page X One Plan Page X One Goal Page X Vision Page X Goals Page X Nonfinancial Page X Financial Page X Core Competencies Page X Situational Analysis Page X The Situational Analysis Page X

11quadrupled, growing by 10,899,000,000. Then it was almost cut in half in the next year (2016), dropping by 6,864,000,000 – which remained almost twice as much in 2016 than it was in 2014. The reason could be that in 2015 they took out a large amount of debt to aide in expansion.The most significant source of Overall Cash Flow is from the Operating Activities; as Investing is a negative cash flow, and Financing Cash Flows fluctuate greatly. However, Finance Cash Flows had the most drastic changes over the listed years. Overall, it’s obvious that Ford Motor Company makes a decent majority of their money from Operating Activities. The most significant uses of cash are within the Investing Activities, the only cash flow activity that has a negative flow. Each year the Ford Motor Company consistently puts out more

The hiring of Hackett may not have been an exemplary decision on Ford’s part. Trey Chowder of Global Equities Research states Hackett is “clueless and hardly the innovator Ford needs right now.” It doesn’t feel Hackett is a forward thinker nor does he understand Ford’s challenges ahead. The R&D for electric and autonomous is cost prohibitive and in 2016, Ford spent $7.3 billion, up 8% from 2014. That is not encouraging, especially when Tesla is pulling ahead. Furthermore, Ford does not do a good job highlighting its innovations and this could be a reason why Ford shares do not trade at a premium. It is common knowledge in the automotive industry in order for an automaker remain competitive it must sell 15 million vehicles a year; Ford sold 6.5 million vehicles in 2016. Cloud computing and artificial intelligence are swiftly changing auto industry’s landscape. Although Ford recently announced it had invested $1.2 billion to build an R & D facility in Canada and hiring 400 engineers from BlackBerry Ltd, it will still be difficult to incorporate a software group within such a traditional automaker. It is a costly undertaking and Ford just does