Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

The Ford Motor Company (Ford), founded in 1903 by Henry Ford, is one of the largest auto makers in the world, based in Dearborn, Michigan. With about 166,000 employees and about 70 plants worldwide, the company’s automotive brands include Ford and Lincoln. During a time of crisis throughout the auto industry in recent years, Ford emerged as the sole American automaker in a position to survive the steepest sales downturn in decades without a government bailout. That helped the company improve its reputation and win new customers, as well as to pass Toyota as the No. 2 seller in the U.S. in 2010. In addition, the company had outsold G.M. in February 2010, something that had not happened in more than 50 years, aside from several months in 1998 when G.M. workers were on strike.

Revenues by Ford grew 10.9% percent in 2010, from $116,283 million to $128,954 million, even though it sold Volvo and closed the Mercury brand. In 2011, the company increased market share for the second consecutive year — the first time that has happened since 1993. With its new Focus compact car arriving in 2011, Ford will continue its shift to more small cars and away from trucks.  

Although Ford faced an increase in revenues in 2011, the firm’s brand value decreased by 1% to $16,556m. At the same time, enterprise value went down to $93,102m, a 14% decrease compared to 2010. Yet, Ford’s brand rating improved from AA in 2010 to AA+ in 2011.

 

Positive Aspects

Drive Green strategy

Ford is pursuing multiple technologies to find affordable ways to create safer, more fuel-efficient and quality products, while achieving efficiencies that are quickly leading to fuel economy improvements. Record investment in new engines, six-speed transmissions and fuel-saving technologies has raised Ford’s fleet average fuel economy performance faster and by a greater percentage than any major automaker. Since the successful launch of the 3.5-liter EcoBoost V6 in 2009, Ford is on track with plans to spread the technology around the globe. Along with the 3.5-liter, there are 1.6-liter and 2.0-liter four-cylinder EcoBoost engines as well.

Global expansion and growth 

Ford expects 70 percent of its growth in the next 10 years to come from its Asia Pacific and Africa region. This region encompasses markets on three continents, including Australia, China, India, Thailand and South Africa. Industry sales in the region increased from 24.5 million units in 2009 to an estimated 30.7 million units in 2010. Through its investments in Argentina and Brazil, Ford is also demonstrating high expectations for the opportunities and growth potential for this region. The One Ford plan includes a long-term growth strategy for South America and calls for Ford Argentina to play a major role in supplying key products for the Latin American markets.

The Ford Volunteer Corps help building communities by leveraging the volunteer muscle of Ford employees and retirees throughout the world. 

The Ford Volunteer Corps is made up of Ford employees and retirees from six continents. The Corps was formed in 2005 by Bill Ford, then Ford’s president and CEO, in response to the need created by three natural disasters. The Corps later was expanded and made a permanent part of the Ford Fund and Community Services.

In 2010, more than 26,000 Ford employees and retirees in 41 countries gave more than 112,000 hours to their communities as part of the Volunteer Corps. This included several Accelerated Action Days in 2010. Each has a special focus, such as families and children or the environment. Shelters and schools, children’s homes, soup kitchens, and parks and playgrounds have all benefited from the help provided by these volunteers.

Negative Aspects

With its latest recall, the Ford Motor Co. has recalled 14 million cars and trucks since 1999 because of a clear danger that the vehicles could erupt in flames without warning.

On October 13, 2009, Ford Motor Co. expanded its largest-ever recall by about 4.5 million vehicles equipped with  a faulty cruise-control switch linked to at least 550 vehicle fires nationwide, and the destruction of many homes and other properties.  Ford has now recalled more than 14 million vehicles in eight separate recalls over a 10-year period because of the problem.

Ford announced it was recalling millions of cars, trucks, and vans because a switch that deactivates the speed control can overheat and catch fire according to the National Highway Traffic Safety Administration (NHTSA). The NHTSA has reported receiving 1,472 complaints connected to the defect, including 65 fires. This long-running series of destructive fires has heavily affected the company’s image and caused consumer distrust in its cars.

 

 

Last changed September 2, 2011

League tables

Ford appears in the following brand league tables:

Rank 36 in the Global 500 2012.
Rank 40 in the Global 500 2011.
Rank 40 in the Global 500 2011.
Rank 52 in the Global 500 2010.
Rank 53 in the Global 500 2009.
Rank 52 in the Global 500 2008.
Rank 59 in the Global 250 2007.