Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 12 pages
Data source: Published sources
Share a link:
https://casecent.re/p/68002
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
In 2004, with the entry of Japanese, Chinese and Asian automakers into the US automobile market, the ''big three'', General Motors (GM), Ford and Chrysler experienced a decline in their market share and sales. Their warranty and pension costs had increased and consumers complained of low quality parts used in their vehicles. GM and Ford were downsizing their work force to compensate for their lost sales. The year 2005 turned out to be a major shake-up for Ford, as it had to recall about 6 million vehicles to rectify defects. Though key players like GM, Toyota and Chrysler recalled their vehicles to revamp defects, Ford recalled its vehicles 17 times. Ford had experienced quality problems in the past years, but in 2005, it was facing a crisis of confidence. The National Highway Traffic Safety Administration was grilling Ford for details of problems in Ford vehicles that had resulted in fire accidents in the Middle East, South America, and Southeast Asia. In order to regain its position in the US automobile market, Ford planned to revitalise its brands and to improve the quality of its vehicles. It also planned to introduce low-cost models in segments where the automakers had been largely absent. With the entry of automakers like Chery and Geely, into the US automobile market, as well as local competitors like GM and Chrysler, would Ford regain its credibility in the US market in the near future?
About
Abstract
In 2004, with the entry of Japanese, Chinese and Asian automakers into the US automobile market, the ''big three'', General Motors (GM), Ford and Chrysler experienced a decline in their market share and sales. Their warranty and pension costs had increased and consumers complained of low quality parts used in their vehicles. GM and Ford were downsizing their work force to compensate for their lost sales. The year 2005 turned out to be a major shake-up for Ford, as it had to recall about 6 million vehicles to rectify defects. Though key players like GM, Toyota and Chrysler recalled their vehicles to revamp defects, Ford recalled its vehicles 17 times. Ford had experienced quality problems in the past years, but in 2005, it was facing a crisis of confidence. The National Highway Traffic Safety Administration was grilling Ford for details of problems in Ford vehicles that had resulted in fire accidents in the Middle East, South America, and Southeast Asia. In order to regain its position in the US automobile market, Ford planned to revitalise its brands and to improve the quality of its vehicles. It also planned to introduce low-cost models in segments where the automakers had been largely absent. With the entry of automakers like Chery and Geely, into the US automobile market, as well as local competitors like GM and Chrysler, would Ford regain its credibility in the US market in the near future?