Motor Company: Financial Profile
If looking at the Governance Profile of the Ford Motor
Company, it is obvious why this corporation is the leading force in the
automotive industry. Ford Motor Company’s President and Chief Executive
Officer, Alan R. Mulally, has an excellent list of qualifications. Mulally is
on the Board of Directors, and was elected Chief Executive Officer of Ford in
September of 2006. In addition, Mr. Mulally’s experience consists of:
“Executive Vice President of the Boeing Company and Chief Executive Officer of
Boeing Commercial Airplanes. He was also a member of the Boeing Executive Council”
(Corporate Ford, 2011). Mr. Mulally’s impeccable experience does not stop
there, as a member of many advisory councils and the U.S. National Academy
of Engineering; he has the education to keep Ford Motor Company the leading
force in the industry (Corporate Ford, 2011).
In addition to Alan Mulally’s expertise, the Chief
Financial Officer and Executive Vice President Lewis W. K. Booth packs a truck
load of knowledge and experience to Ford. Mr. Lewis was elected in November of
2008; Booth has also been Director of Land Volvo Brand, Director of Ford of
Europe and Non-Executive Director of Volvo Cars Division, Ford Motor Company.
It is reported that his ability is worth $1.2 million in compensation per
year (Bloomberg, 2011). Ford Motor Company is proud to have these men and their
experience on staff.
Ford Motor Company’s financial reports show that the
corporation has employed the most experienced minds available, and they are
taking care of business. Ford Motor Company’s 2010 Financial Report shows a
strong comeback. In 2008, when other major competitors were receiving
government bailouts, Ford stood on their own, independent and proud. And
although the company was reporting huge losses, they opted out of taking money
from American Tax Payers. Ford Motor Company earned global respect for their
determination to carry out the tradition, ‘help the fellow-man’, and not take
from them (Ford Reports 2010, 2011).
In 2008, Ford Motor Company reported a net income loss of
$14.7 billion, with a $2.7 billion loss in the earlier year. With the world
economy in crisis, and a plethora of new regulations to follow, along with
below average auto sales, Ford Motor Company’s future looked bleak. But, 2009
birthed new promise into Ford with a reported net income of $2.7 billion; 2010
followed with a reported $6.6 billion net income profit. “The progress that we
made improving our core Automotive business has allowed us to strengthen
significantly the balance sheet in 2010, and this will remain a key area of
focus for us in 2011,” stated Lewis Booth (Ford Reports 2010, 2011). Ford is
focused on improving production and profit, while keeping the environmental
impact to a minimum (Ford Reports 2010, 2011).
Ford Motor Company is back on top and investing in their
future; Ford announced that it will not only invest $600 million in Louisville
Assembly, creating 1,800 jobs, but, they will also be investing $630 million in
Kocaeli, Turkey, for Transit production (Ford Reports 2010, 2011). Ford Motor
also unveiled a new fuel-efficient engine in the 2011 F-150, and redesigned the
Explorer and new Fiesta, “which earned IIHS Top Safety Picks in the U.S.” (Ford
Reports 2010, 2011). Ford Motor Company is performing better than it has in
previous years, and the economy is working with them. As a matter of fact,
because of the corporation’s recent great performance, Ford Motor Company will
be giving qualified employees almost $5,000 each (Ford Reports 2010,
there will always be certain risks in business; Ford is not exempt from these
risks. But, Ford Motor Company has implemented ‘risk management’ processes to
combat such issues. Ford Motor Company sees these risks as being, compliance,
reporting, and strategic risks. “The Audit Committee assists the Board of Directors
in overseeing compliance and reporting risk. The Board, the Sustainability
Committee, the Compensation Committee and the Finance Committee all play a role
in overseeing strategic management” (Proxy, 2010). Such risks include, but are
not limited to, disclosure controls, accounting compliance, sales, technology
development, sustainability, capital allocation, retention and compensation,
and geopolitical development. Taking a combined responsibility, and being
proactive in limiting these risks are what keeps Ford Motor Company thriving in
an economic crisis (Proxy, 2010).
The proof of such risks being minimal is in the financial
profile and longevity of the corporation; Ford Motor has survived through wars,
the Recession, and government bailouts. In fact, when compared to other
competitors in the Automotive industry, Ford Motor is the best investment
choice. In 2010, Ford Motor Company reported an annual net income of $6.6
billion; the first quarter showed a net income of $2.1 billion, and continued to
grow. Additionally, the second quarter showed a $690 million improvement from
the previous year, reporting a net income of $1.7 billion; as well as a fourth
quarter income of $190 million (Ford Reports 2010, 2011). Ford has no doubt
earned their spot on the Fortune 500, and leading in the Automotive industry.
In conclusion, Ford is the leading force in the
Automotive industry because of the expert staff, quality products and services.
This company is the perfect investment opportunity; paying close attention to
the risks and regulations and protecting their investors’ interests. Furthermore,
the Ford Motor Company has stood on their own merit and money through
historical economical crises, keeping investor money safe. Investing in this
company is a wise choice, and is highly recommended. Finally, Ford Motor has
taken high quality performance and entwined it with experience and ability,
while concentrating on ethics and Corporate Social Responsibility; making them
the number one investment opportunity (Proxy, 2010).
Annual Report. (2010).
2010 Annual Report. Ford Motor Company.
Bloomberg. (2011). Ford
Motor Co (F: New York). Bloomberg businessweek.
Corporate Ford. (2011,
March 7). Board of Directors. Ford Motor Company.
Ford Reports 2010.
(2011, February 14). Ford reports 2010 full net income of $6.6 billion;
Fourth quarter net income of $190
million. Ford Motor Company.
Proxy. (2010). 2010
Proxy. Ford Motor Company. http://corporate.ford.com_proxy.pdf