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Ford Motor Company SWOT analysis


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Full information and free links to download or obtain Ford Motor Company SWOT analysis is shared here! The SWOT analysis available in PDF, Ms Word, and Zip file. This analysis has included the marketing strategies, the company strengths, weakness, opportunities, as well as Threats. If you look at Ford Motor Company Timeline, Ford Motor Company (Ford) has become one of the largestcarmanufacturers in world. It has produces a lot of branded vehicles over the years. These vehicle brands include the famous Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury, and Volvo.

The Ford Asia, Ford Africa, and Ford Mazda operations have recorded strong performance in fiscal 2005 and this has made the company manufactures and distributes their vehicle to over 200 markets in the world. The strategy has got nothing to compare to marketing strategies of Tata Motors as they do not have the similar point.


1. Strong Ford Asia, Africa and Ford Mazda operations

An obvious and strong performance in fiscal 2005. The revenue from Ford Asia, Africa and Ford Mazda itself has reached $8,245 million in 2005, up 18.5% over 2004. More importantly, this segment recorded an income before taxes of $297 million in fiscal 2005, up from $82 million in fiscal 2004. This could prove Ford to be a large revenue and profit driver in the upcoming years.

2. Growing Ford Europe and PAG

The Ford Europe and Premier Automotive Group (PAG) recorded strong revenue growth in fiscal 2005 as well. The PAG brand vehicles are such as Aston Martin, Volvo, Jaguar, and Land Rover. The revenue from Ford Europe and PAG hits nearly $60,258 million in 2005, and this has shown a growth of 11.3% over 2004. This revenue is primarily the sale in Europe and Turkey only.

3. Profitable financial services division

Ford Motor Credit (The financial services division) has kept the company buoyant. In fiscal 2005, Ford Motor Credit has recorded a before tax income of $5,891 million, approximately $873 million growth compared to $5,008 million in fiscal 2004. On the other hand, the automotive division recorded loss before taxes of $3,895 million in fiscal 2005, up from $155 million in fiscal 2004. As a result, the company was able to record a net profit of $2,024 million in fiscal 2005. In recent years, financial services division continues to remain profitable. This has really makes it different with Tata Motors Company if you read the SWOT analysis of Tata Motors.


Ford Motor Company faces 3 major weaknesses which are:

1. Weakening North American automotive operations

In fiscal 2005, the company’s operation in North America recorded a weak performance. The revenue fell 2.4% to approximately $80,600 million in fiscal 2005. The automotive operations in North America have also recorded a loss before taxes of $2,500 million in fiscal 2005. If compared to fiscal 2004, the company recorded an income before taxes of $684 million for North America.

Reason why weakening of automotive operations in North America:

2. Tarnished brand image

Image of Ford has been flawed due to constant Ford Motor Company Recalls. For example the Ford Focus recall. Ford spent $2.1 billion in 2001 replacing 13 million tires made by Bridgestone/Firestone. Other than that, Ford recalled approximately 792,000 pickup trucks. All these has made a huge cost to the company as well as tarnish the brand image and make a negative impact to Ford’s sales in the US. Other than that, complaints to some of the product such as Ford Escape problems have also affect the brand image.

3. Large unfunded pension and other obligations

Ford has significant unfunded pension, health care and life insurance obligations.


1. The way forward plan

Ford had launched a new plan to improve the performance of automotive business in North America in year 2006. This plan aims to make the business more product-driven, customer-focused, and efficient.

2. Hybrid vehicles

By year 2010, more than half of Ford Motor Company’s product are expected to switch to Hybrid electric engines due to the limited resources – petroleum. Higher fuel prices and growing environment-consciousness will make Hybrid vehicle a good sale. The hybrid vehicle may include Ford Flex Crossover.

3. Opportunities in India and China

China and India is world well-known country with high population. Ford reinforced its commitment to both these countries by launching Ford Fiesta in India during 2005 and light vehicle in China. High demand for light vehicle from these countries would provide an opportunity for the company to diversify its revenues.


1. Rising new material prices

Unstable steel price, hot rolled steel coil price, has become one of the biggest threats not to Ford Company but most of the automotive company. Ongoing industry consolidation in the steel industry could push prices to higher levels at anytime when the demand grows.This could obviously affect the company’s profit margins.

2. Increasing competition

Ford market share in the US light vehicle market has declined from 22.8% to 18.2% from 2001 to 2005. This is because the major competition from Japanese companies and some other Europe companies such as Audi, Mercedes-Benz…etc The growth of Japanese company such as Toyota, Honda, and Nissan has also threatened Ford’s market share.

3. Low capital spending

Ford’s capital spending is lower than its competitor. This capital spending has include the Research and Development (R&D) expenditure which could affect the company from going forward. In 2005, Ford’s capital spending was only $1,766 per vehicle compared to Honda’s $3,193 per vehicle and Toyota’s $2,937. In automobile industry, any aging vehicle range would adversely affect growth of the company.

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