Ford Motor Co. is a company that specializes in the production, distribution, and sales of automobiles. It is divided into three segments: Automotive and Mobility. The Automotive segment is responsible for developing, manufacturing, and marketing Ford and Lincoln vehicles. The Mobility segment includes Ford Smart Mobility LLC and the autonomous vehicle business. Ford Credit focuses primarily on vehicle-related financing and leasing activities. Henry Ford founded the company on June 16, 1903, and it is located in Dearborn, MI.
The company’s fiscal year ended December 2020 (FY2020) revenues were US$127,144 million. This is a decrease of 18.4% from FY2019. In FY2020, the operating loss was US$4,409 million, while FY2019 saw an operating profit of US$519million. This company lost US$1,279 million in FY2020, while it made US$47 million in net profit in FY2019. For the quarter ended June 2021, revenues were US$26.752 million, a 26.2% decrease over the previous quarter.
Ford Business Segments:
The automotive segment includes the sale of Ford and Lincoln vehicles, service parts, and accessories on a global scale. The electric vehicle division is also a part of this segment. In 2020, Ford sold approximately 4,187,000 vehicles globally.
This segment includes the development costs for Ford’s autonomous vehicles and other related businesses, such as Ford’s equity ownership in Agro AI (a developer of autonomous driving systems) and Spin (a micro-mobility service provider). Moreover, from January 1st, 2021, the costs and benefits related to Ford enterprise’s connectivity activities included in the mobility segment will be reported in the automotive segment.
Ford Credit Segment:
This segment deals with vehicle financing and leasing. Ford credit deals with a wide range of offers of automotive financing products to and through automotive dealers across the globe. This segment earns revenue from payments made under retail installment sales and finance leases, operating lease contracts originating from purchases, interest rate supplements, other support payments from them and their affiliates, and payments made under dealer financing programs.
Ford Motor Company Strategy:
Ford Motor Co. plans to improve its automotive business, speed-up transformation, improve execution, and boost economic growth by incorporating modernized methods of operation to simplify its processes and explore new opportunities. Despite the challenges of COVID-19, Ford finished the 2020 financial year in a strong position. Ford plans on focusing on investing in their electric vehicle, self-driving vehicle, and connected solutions business segments. The company plans to improve its product quality, lower costs, and accelerate the restructuring of its global businesses. It specifically plans to invest more capital, resources, and talent in its strongest businesses and vehicle franchises, and expand its commercial vehicle business with software services that boost loyalty and subsequent revenues.
Ford Motor Consolidated Joint Ventures:
Ford Li Ho Motor Company Ltd. (FLH) – It is a joint venture between Ford and the Li Ho Motor Company. Ford owns a 70% stake, while the Li Ho Motor Company owns a 25% stake, and the remaining 5% belongs to individual stakeholders. FLH assembles a variety of Ford vehicles. One plant is operated through this joint venture in Taiwan.
Ford Vietnam Limited – a joint venture between Ford (75% stakeholder) and Diesel Song Cong One Member Limited Liability Company, which is a subsidiary of Vietnam Engine and Agricultural Machinery Corporation, accounts for the remaining 25%. Ford Vietnam Limited assembles and distributes a variety of Ford passenger and commercial vehicle models in Vietnam.
- In January, Ford’s micro-mobility subsidiary, Spin, partnered with Tortoise to launch Spin S-200 remotely-operated e-scooters in cities across Europe and North America in 2021.
- In February, the company announced an investment of US$1.05 billion to modernize and grow its Ford Silverton assembly plant to support the expanded production of the all-new Ranger pickup truck.
- In February, Ford Motor and Google entered into a strategic partnership to accelerate their transformation strategy.
- In January, Ford Motor secured approvals from the European Commission to acquire Getrag Ford Transmissions.
- In February, Ford entered into a partnership with Hermes to trial a sustainable courier service.
- In February, Ford Motor divested its 7.6% stake in Velodyne Lidar.
- In February, Ford Motor and Arity entered into a partnership to enable efficient usage-based insurance offerings.
- In March, Ford launched the new F-150 Police Responder.
- In March, Ford and HP entered into a collaboration to transform 3D waste into auto parts.
- In April, Ford announced to build a new light commercial vehicle in Romania by 2023.
- In May, Ford Motor along with the BMW Group and Volta Energy Technologies invested US$130 million in Solid Power, a producer of all-solid-state batteries for electric vehicles.
- In May, Ford Motor along with SK Innovation announced to form of a battery joint venture in the US.
- In May, the company announced the introduction of the all-electric F-150 Lightning pickup truck for commercial customers.
- In June, Ford launched a new compact hybrid pickup truck, the Maverick.
- In June, Ford Motor announced its plans to acquire Electriphi, a provider of charging management and fleet monitoring software for electric vehicles.
- In July, Ford Motor and MS-RT announced the establishment of a new vehicle conversion facility at Ford Dagenham.
- In August, Ford Motor’s Spin entered into a partnership with Moovit in the UK, Germany, and Spain to enable Moovit users to find Spin e-scooters.
- In July, Ford announced to build Ford Ion Park for US$100 million.
- In September, Ford Motor’s Spin announced to expand its micro-mobility services in Portugal.
- In October, Ford Motor is in talks to sell its units in Tamil Nadu and Gujarat to Tata Motors, an automotive manufacturer.
- In October, Ford Motor announced an investment of up to US$316 million to build electric car components at its Halewood factory in the UK.
- Ford was America’s best-selling vehicle brand for the tenth consecutive year in 2020.
- In 2020, Lincoln SUVs marked its best annual sales since 2003.
- F-series sales totaled 896,526 units marking its 43rd year as America’s bestselling pickup truck (2020).
- In 2020, it announced the expansion of its alliance with Volkswagen to include investments in Agro AI, an autonomous vehicle development entity, and cooperation in the development of electric vehicles.
- Achieved a 5.5% absolute reduction in global waste sent to landfills in 2018.
- Achieved a 7.8% absolute reduction in global water use for manufacturing in 2018.
- Achieved 30% CO2 reduction per vehicle from its manufacturing facilities leading to a new goal for a further 18% reduction by 2023.
Ford Motor Fun facts:
- Ford is the world’s second-largest family-owned company.
- Ford’s first car was “The Model A”, which was sold to Dr. Pfennig in 1903 for $850.
- Ford’s signature logo was introduced 4 years after being in production.
- Ford made history by displaying the Ford Mustang in 1965 on the observation deck of the Empire State Building, using the resident elevator to transport the car in 4 parts.
- In 2012, Chevrolet used a Ford SuperDuty to set up their Chevy Truck display at the Texas State Fair.
- Ford began manufacturing airplanes during WWI.
- Ford won the Le Mans race in 1966, ending their sixth-year winning streak of Ferrari.