Ford motor company is an American Multinational Automobile Corporation founded in 1903 by Henry Ford and 11 associate investors.
The headquarter of the company is located in Dearborn, Michigan, United States. The company produces automobiles, Automotive, Truck, Fordism, Model T, commercial vehicles.
Its production output is 4,187 million vehicles (2020). It is joined with China (Changan Ford), Taiwan (Ford Lio Ho), Thailand (Autoallians Thailand), Turkey (Ford Otosan), and Russia (Ford Sollers). The Ford family controls this company.
Ford India Private Limited is a subsidiary of Ford motor company. The headquarter of this company is located in Sholinganallur, Chennai, Tamil Nadu. The founder of the company, Anurag Mehrotra, is currently the President & Managing Director of Ford India.
Ford re-entered the Indian market in October 1995 as Mahindra Ford India Limited (MFIL), which joined Mahindra and Mahindra Limited with 50-50 joint ventures. Ford increased its interest to 72% in March 1998 and renamed the company Ford India Private Limited.
There are around 10,000 employees who work in the company.
How their production affects their business and market
The moving Assembly and $5 work per day plan –
Ford was instrumental in giving higher wages to employees; he changed the way of the manufacturing plants operation. Ford had introduced his labourers with $5 per day increasing their wages and with this decreased the shifts by one hour and gave higher salaries.
The shift length decreased so that ford could create a third shift and hire more workers. When they announced this plan in 1914, it more than doubled his labour forces salary.
The Impact of this Plan
1) Soon, the company could choose the best workers they wanted from a large pool of candidates who also did wonders for the Detroit economy with higher wages.
2) Ford was able to increase the living of many of his employees, taking most of them from the working class up to the middle class, where they could enjoy many of those luxuries.
3) Because of this, Detroit is America’s 13th largest city, with a population of 285,704 people living in it.
4) In 1930, over 1 million people lived there and increased the population by 57% over the decade.
5) Before the 20th century, automobiles prior were only for the rich, and were only for the rich, and are still not reliable forms of transportation.
But ford debuted the Model T in 1908 for the working-class family with a very low price of $825 so that workers could use their vehicles.
Ford India merged with Mahindra company
1) Mahindra and Mahindra Limited and Ford Motor Company signed an agreement to create a joint venture to develop, market, and distribute Ford brand vehicles in India.
2) Mahindra owning a 51% controlling stake, and Ford owning a 49% stake. Mahindra and Ford’s bonding is a long history of cooperation and mutual respect between the two companies.
Reasons for stopping the Ford India Production
After 27 years, America carmaker is stopping the production of its cars and SUVs in India. There are various reasons for ceasing ford India.
1) The main reason behind this is that plant capacity consumption has been unsustainably low.
2) Ford India has made a loss of around $2 billion in operating the past ten years. Demand for new vehicles has been weaker than forecast. Because of this, Ford failed to find a manufacturing partner.
Future of Ford in India
According to the announcement, Ford will continue its presence in India and increase its business support and solution team to support Ford at the Global level.
They will focus on engineering, technology, and business operation.
Impact of ceasing of the company on the workers
According to Ford, about 4000 employees has lost their job.
Conclusion
The Ford company is an American Multinational Company that produces automobile and commercial vehicles and exports in different parts of the world. So we can say that it is a good and reliable company that provides good facilities.
Ford made considerable changes in the company. Ford India, which is a subsidiary of ford Ford India, which is a subsidiary of ford company, is about to cease in India for some fundamental reason. Ford made considerable changes in the company. But Ford claimed that it would continue its presence in India with some improvements.
