Rebirth of Ford Motor Company

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When one thinks of the perfect job they consider a lifelong career where they can achieve loyalty and commitment to a company, and in hopes of receiving the same back from their employer. In some cases this is not always the outcome; today many employees are experiencing betrayal from companies they had once devoted their lives too, but these companies concerns are not their employees but the profit that they are making from these employees. The Ford Motor Company, one of the largest car manufacturers in the world is currently in need of recreating their business structure, which ultimately results in a company downsize. The company has recently made the decision to decrease their workforce between 25,000 to 30,000, this decision is largely due to the $5.8 billion third-quarter loss this year (Bush). Though the company hopes to increase productivity and profit by the downsize, their will be tremendous effects on those who are forced to leave their careers, and also those who are lucky enough to stay with the company.

On June 16, 1903, an intelligent man named Henry Ford and 11 associates opened the Ford Motor Company with $28,000 in cash, like most companies Ford started out modest, but soon rose to be the most successful manufacturer in the country. One thing that separated Ford from all other manufacturers was the assembly line. The assembly line allowed Ford to produce cars faster and more efficiently that many other companies. By the time the 50’s had reached, Ford had adapted to fulfilling its customers needs, and had increased the number of stockholders to 350,000. Soon after, the Ford Company made the decision to go global, which was a great success. Today the company has grown to consist of a number of brands that are formatted to meet the needs of the constantly changing consumer (History).

Though the company had continuous success for many years, last year started a downfall for the company. In October of last year the CEO of Ford, Bill Ford Jr., announced that the company would need a dramatic change in order to stay alive. The company reported a $1.3 billion pretax loss in 2005 compared to a $609 million loss in 2004 (Hoffman). Recently the company reported a $5.8 billion third-quarter loss, which has been the biggest in the past 14 years (Bush). Due to these enormous losses the company plans to largely reduce its company’s employment, in hopes of strengthening the company as a whole and increasing profitability (Hoffman).

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