Ford Motor Company Case Study

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Register to read the introduction… In 1926, the General Motors Corporation introduced it’s Chevrolet automobile, a more stylish and powerful car. Since sales of the Model T dropped sharply, Ford decided to discontinue it in favor of the new Model A.
     The economic crisis of October 1929, which lead to the Great Depression, forced many companies to close. Ford Motor Company managed to remain in business, despite losses as much as $69 million per year. If it wasn’t for the sales of the Model A, which sold 4.5 million units between 1927 & 1931, Ford’s situation would have been much worse.
     Unionization activities climaxed in April 1941 when Ford employees went on strike. The NLRB called an employee election, and when the ballots were tabulated in June, the United Automobile Workers union drew 70% of votes. Henry Ford, an avowed opponent of labor unions, suddenly altered his stand. He agreed to contract with union representatives which met all worker
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The B class was reserved for family members and constituted the controlling 40% voting interest. The ordinary common shares were to be retained by the company until January 1956, when they were to be offered to the public for the first time.
     The Ford Motor Company purchased the Philco Corporation in 1961 and established a tractor division in 1962. The following year Ford introduced it’s highly successful Mustang; more than 500,000 of these cars were sold in the first 18 months.
     Ford Motor Company subsidiaries in Europe entered a period of strong growth and high profitability in the early 1970’s, and these subsidiaries produced components for the Pinto, a sub-compact introduced in the US in 1971. Pinto models from 1971 to 1976 drew a great deal of attention after numerous incidents involving explosions of the gas tank in a rear-end collision. The unfavorable publicity from news reports greatly damaged Ford’s public

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