WEEK THREE CURRENT EVENTS:
Ford Motor Co.

There are many factors that contributed to the financial decline of Ford in recent years. Such issues are competition, outsourcing, and product decisions.


Japanese competition is a huge factor. Toyota is one of the largest automotive company in the world. It is making good cars, for relatively cheap prices. The public likes the cars. They want to spend less on more efficient vehicles. Another reason for Ford's financial decline is that it didn't make the correct decisions in what cars to design.

Because of rising gas prices, the auto market has made a shift into more fuel-efficient, smaller cars. Ford has been spending a lot of money and time designing SUV-type vehicles. The engineers and designers of the cars just didn't look into the future and decide what they would do, if the gas prices raised as dramatically as they have. Other companies have outsourced many jobs, allowing them to lower prices, and in return gain more profit.