FordMotorCompany,Americanautomotivecorporation

foundedin1903byHenryFordand11associateinvestors.In
1919thecompanywasreincorporated,withFord,hiswife,
Clara,andhisson,Edsel,acquiringfullownership;they,their
heirs,andtheFordFoundation(formed1936)weresole
stockholdersuntilJanuary1956,whenpublicsaleofthe
commonstockwasfirstoffered.Thecompanymanufactures
passengercars,trucks,andtractorsaswellasautomotiveparts
andaccessories.HeadquartersareinDearborn,Michigan.
HenryFordbuilthisfirstexperimentalcarinaworkshopbehind
hishomeinDetroitin1896.AfterformationoftheFordMotor
Company,thefirstFordcarwasassembledattheMackAvenue
plantinJuly1903.Fiveyearslater,in1908,thehighly
successfulModelTwasintroduced.Demandforthiscarwasso
greatthatForddevelopednewmassproductionmethodsin
ordertomanufactureitinsufficientquantities;in1911he
establishedtheindustrysfirstU.S.branchassemblyplant(in
KansasCity,Missouri)andopenedthecompanysfirstoverseas
productionplantinManchester,England;in1913heintroduced
theworldsfirstmovingassemblylineforcars;andin1914,to
furtherimprovelabourproductivity,heintroducedthe$5daily
wageforaneighthourday(replacing$2.34foraninehour
day).
ThecompanysfirstinternationalsalesbranchopenedinParis
in1908.Bymid1914thereweremorethan500,000ModelTs
ontheroadsoftheworld;by1923thecompanywasproducing
morethanhalfofAmericasautomobiles;and,bytheendofthe
1920s,Fordhadmorethan20overseasassemblyplantsin
Europe,LatinAmerica,Canada,Asia,SouthAfrica,and
Australia.TheFordhadbecometheworldsmostfamiliarmake
ofcar.In1927thelastModelTandthefirstnewModelAwere
produced,followedin1932bythefirstFordV8.In1922Ford
hadacquiredtheLincolnMotorCompany(founded1917),
whichwouldproduceFordsluxuryLincolnsandContinentals.
In1938FordintroducedthefirstMercury,acarinthemedium
pricedrange.

Asearlyas1906HenryFordhadacquired58.5percentofthe
companysstock;and,whentheotherstockholdersbalkedatthe
ideaofbuildingthegiant(andexpensive)RiverRougeplantin
Dearborn,heboughtthemout;EdselFord(18931943)became
president(1919).OnEdselsdeathin1943,HenryFordreturned
tothepresidency,butin1945heturneditovertohisgrandson,
HenryFordII,whoreorganizedthecompanystangledsystem
offinancialmanagementandreinvigorateditscorporateculture
byhiringtalentedyoungermanagers.Thefailedintroductionof
theEdsel(modelyears195860)occurredamidthesesuccesses.
HenryFordIIcontinuedtoguidethecompanyaschief
executiveofficer(194570)andchairmanoftheboard(1960
80).
Inthe1950sand60stheFordMotorCompanybeganlimited
diversification,butbythe1990sithadrefocusedattentiononits
automotiveconcernsandfinancialservices.In198990Ford
acquiredJaguar,aBritishmanufacturerofluxurycars.Aston
Martinbecameawhollyownedsubsidiaryin1993.Later
acquisitionsincludedtherentalcarcompanyHertzCorporation
in1994,theautomobiledivisionofVolvoin1999,andtheLand
Roverbrandofsportutilityvehiclesin2000.Fordalso
purchasedasignificantshareoftheMazdaMotorCorporation.
However,asFordstruggledintheearly21stcentury,itbegan
sellinganumberofitsbrands.In2007thecompanysoldAston
Martin,andthefollowingyearitsoldJaguarandLandRoverto
TataMotorsLtd.ofIndia.
InDecember2008Pres.GeorgeW.Bushannouncedan
emergencyfinancialrescueplantoaidtheBigThree
automakersChryslerLLC,GeneralMotorsCorporation,and
Fordtopreventthecollapseofthecountrysstrugglingauto
industry.Theplanmadeimmediatelyavailable$13.4billionin
governmentloansfromtheTroubledAssetsReliefProgram
(TARP),a$700billionfundapprovedbyCongresstoaidthe
financialindustryfollowingthesubprimemortgagecrisis.The
loanswouldallowtheautocompaniestocontinueoperating
throughMarch2009,whentheywererequiredtodemonstrate

financialviabilityorreturnthemoney.Anadditional
stipulationrequiredthecompaniestoundergorestructuring.The
moneywasinitiallymadeavailabletoGeneralMotorsand
Chrysler;Fordpurportedlypossessedadequatefundsto
continueoperationsand,thus,didnotimmediatelyrequire
governmentrelief.
AbletoavoidbankruptcyforwhichbothGeneralMotorsand
ChryslerfiledFordexperiencedincreasedsalesandmarket
sharein2009.Thegrowthwaspartiallyduetothefederal
governmentscashforclunkersplan,whichgaveconsumers
upto$4,500towardtradeinsofoldercarsfornewfuelefficient
models.Inaddition,Fordadoptedvariouscostcuttingmeasures
andfocusedonstrongerbrands.InMarch2010theautomaker
agreedtosellVolvototheChinesecompanyZhejiangGeely
Holding.SeveralmonthslaterFordannouncedthatitwould
discontinueitsMercuryline.