Essay on Ford

Words: 1044
Pages: 5

Microeconomics of the Ford Motor Company
Final Paper – ECO201 14EW1
Karen J. Cassady
Southern New Hampshire University

(Brief Summary of paper aprox 150 words) to be added for final draft.

The purpose of this paper will be to explain how the supply and demand as well as the elasticity of demand exists for the automobiles produced by the Ford Motor Company. The early history of the company through the present will be highlighted in an effort to show how the firm became a global leaders in the production of automobiles.

Ford Motor Company The firm that I have chosen for this paper is the Ford Motor Company. The Ford Motor Company has become one of today’s largest most profitable
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The mounting losses in sales revenue caused a different kind of loss: The loss of executive talent. Many of Ford’s top managers left the company to head a new Nissan venture in Tennessee while others went to Ford’s domestic competitors, the most famous of whom was Lee Iacocca who left to head Chrysler. All this came during a recession, soaring gasoline prices and sky-high interest rates (Ford 100: From red ink to glory: The '80s story). Philip Caldwell would be the man who would turn things around in a huge way. Mr. Caldwell succeeded Henry Ford II as Ford’s top man and he would bring the slogan: “At Ford, Quality is job 1” to the company and he would do so in fuel efficient vehicles that had a European flair.
The 90s to the present saw a diverse wave of changes to not only Ford but the entire American automotive industry. Perhaps the most notable event was the acceptance by Ford’s chief competitors GM and Chrysler to accept billions of dollars of tax pay funds to help stave off bankruptcy. Ford was in the enviable position of not having to accept any funds at all and would close 2008 $13.4 billion in available cash (The New York Times Business)

Supply and Demand for Ford Motor Company
Ford adjusts its output of vehicles on a quarterly basis to meet the demand. As the graph shows, the supply of vehicles over the last five years has increased to