Abstract

US based automobile manufacturer Ford Motor's North American business was facing problems since the early 2000s due to external business environment factors like severe competition from the Japanese automobile manufacturers, rise in gasoline prices and decline in the sales of SUVs. Other factors like old vehicle models, rising pension and healthcare costs and changing customer preferences also had an adverse affect on the division. As a result, Ford has been losing market share in North America and in 2005, the division posted huge losses. To revive its business in North America, Ford introduced a restructuring plan called 'The Way Forward.' The case discusses in detail about the plan and explains how it aims to turnaround Ford's North American business. Industry analysts' views on the efficacy of the plan are also covered.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Critically examine the ‘Way Forward’ restructuring plan and determine its efficacy
• Study and analyze the problems that organizations face with rapid globalization
• Understand the effect of huge legacy costs on the organization.

Keywords

Ford Motor, Way Forward, Corporate Restructuring, Corporate Turnaround, Pension and Healthcare Costs, United Auto Workers, Premier Automotive Group, Jobs Bank Agreement, Product Innovation, Aligned Business Framework, Straightforward Pricing, Ford Revitalization Plan