Historical Account Ford Motor Company started in 1903 in United States of America and Is headed by Henry Ford. In 1 908, the company launched a car that would change the history of transportation: the Model T. It was the result of Henry Ford’s dream to build a car that everyone can afford, one that was easy to operate and maintain. It became such a hit that during the first year of production, 10,660 units were sold – a record- breaking feat in the automotive Industry. Ford’s history In the Philippines can be traced back to 1913 with the Ford Model T of the United States being assembled In the Philippines.
Henry Ford founded the Pleasant Ford Car Works, Inc. (FCC) In 1 929 but later became the Ford Philippines Corporation (FPC) In 1963. Production began In 1967. The original assembly plant was located In Scat, Appearance City, Metro Manila, while a body stamping plant was established In Bataan Province. The company changed its name to Ford Motor Company Philippines Inc. (FMC) in 1997 and proceeded to launch us-made vehicles such as the Expedition, F-150, Clubbable and Lincoln Town Car. In the early sass’s, the company expanded its line-up with the introduction of the Escape SLAV, Explorer SUB and Everest SUB.
Towards the end of the decade, the Fiesta and Mustang were also introduced in the local market. Ford Philippines has achieved record vehicle sales in the Philippines for 2013 – making Ford the fastest-growing car brand in the Philippines and among the Top Five vehicle brands in the Philippines. The success of Ford upon launching in the Philippines resulted to several branches and dealers throughout the country. Among these branches are, Ford Alabama – which is now the official Ford Philippines’ main office, Ford Cavity, Ford Zebu, Ford Negroes, Ford Laguna, Ford Batting’s, Ford Lillo, Ford Tactical, Ford Nag, Ford Bhutan, Ford Lip,
Ford Mangling, Ford Balalaikas, Ford Guenon Avenue, Ford Manila Bay and Ford Commonwealth. Ford Commonwealth, where the group conducted an interview, is one of the active dealers of Ford and was established in 2004 and has almost 10 years of existence. It also stands as the supplier of Ford Guenon Avenue. Production As a well-known and trusted automotive company, Ford ensures that It manufactures high quality of cars and motors. Ford Commonwealth generally gets Its equipment and ready-made cars from Its mall supplier which Is the Ford Philippines located at Alabama.
All vehicles are basically USA and Thailand made. Ford Commonwealth supplies another dealer of Ford located at Guenon City. The dealer makes sure that there are no defects In their cars and ensures that it functions well. Since Ford uses American technology, which necessitates high quality and durability of the equipment being used, it requires higher price than usual but which is somehow reasonable. Ford also assures that their motors and services meet the satisfaction of the consumers. Balalaikas, Ford Manila Bay and Ford Commonwealth has a total sale of 300 – 400 units a month.
For instance, the Ford Fiesta and Ford Rangers which are the best leers cost around PH 800,000. 00+ (Ford Fiesta) and PH 1 (Ford Ranger) would be equal to PH 32,318,000,000. 00 if 200 units are sold for each model. In terms of labor, the company is committed to equal opportunity in employment and to fostering diversity in work force. The hiring policies and practices require that there be no discrimination because of race, color, religion, age, gender, national origin, or veteran status.
Ford recognizes that diversity in work force is a valuable asset, and strives to provide an inclusive work environment in which different ideas, perspectives, and beliefs are respected. Violations of the Company’s equal opportunity policies may result in discipline, up to and including termination or release. Market Share Ford Commonwealth dealer is one of the NC (Anthony N. Change) group of companies and is in partnership with Mazda Guenon Avenue, Mazda Paisa, Honda Calm, Ford Balalaikas, Ford Guenon Avenue, Ford Manila Bay, Suzuki, Microsoft and Sony for audio.
Ford also ranked 5th in automotive companies in the Philippines. Ford Philippines offers huge discount to Ford Commonwealth. Example, for the El 50 model, the Ford Commonwealth benefits 200,000 discount from Ford Philippines. Ford’s main strength is its brand image because of the Ford and Lincoln brand name. The company’s market share throughout the world greatly enhances their competitive advantage and has increased bargaining power (Ford, 2012) Elasticity Consumer behavior or elasticity is a consumer’s response to a change in price of a good or service.
Automobiles tend to have elasticity in them in regards to make, model, and features that the consumer is willing to pay for. Basic models and good fuel mileage become important as income goes down and elasticity for automobiles goes up. In fact, Ford is known for having the best features among the other car brands in the Philippines. Ford has quickly become the vehicle of the people. It has decoded the key of elasticity and consumer behavior to again become a formidable competitor in the automobile industry.
Ford’s characteristics of reliability, fuel economy, and “world class dependability’ have made it easy for consumers to choose Ford (Valves-Depend 2010). In fact, Ford Balalaikas, under the leadership of its Dealer Principal Anthony N. Change, was named Ford’s ‘2013 Dealer of the Year’ in Metro Manila. Financial Performance and accessories; it generally treats sales and marketing incentives as a reduction to revenue. Revenue is recorded when all risks and rewards of ownership are transferred to the customers (generally, the dealers and distributors).
Most of the vehicles sold by Ford to the dealers and distributors are financed at wholesale by Ford Credit. Upon Ford Credit originating the wholesale receivable related to a dealer’s purchase of a vehicle, Ford Credit pays cash to the relevant legal entity in automotive sector in payment of the dealer’s obligation for the purchase price of the icicle. Ford’s financial services sector’s revenue is generated primarily from interest on finance receivables, net of certain deferred origination costs that are included as a reduction of financing revenue, and such revenue is recognized over the term of the receivable using the interest method.
Also, revenue from operating leases, net of certain deferred origination costs, is recognized on a straight-line basis over the term of the lease. Income is generated to the extent revenues exceed expenses, most of which are interest, depreciation, and operating expenses. Costs and Expenses Ford’s income statement classifies automotive total costs and expenses into two categories: (I) cost of sales, and (it) selling, administrative, and other expenses. Ford includes within cost of sales those costs related to the development, manufacture, and distribution of our vehicles, parts, and accessories.
Specifically, Ford includes in cost of sales each of the following: material costs (including commodity costs); freight costs; warranty, including product recall and customer satisfaction program costs; labor and other costs related to the development and manufacture of products; appreciation and amortization; and other associated costs. Ford includes within selling, administrative, and other expenses labor and other costs not directly related to the development and manufacture of products, including such expenses as advertising and sales promotion costs.