Question

In: Operations Management

What are some long-term contracts that Ford Motors is facing as an investor need to know...

What are some long-term contracts that Ford Motors is facing as an investor need to know to make an investment? [200 words or more][Will give thumbs up]

Solutions

Expert Solution

Solution -

Ford is a multinational automaker established in Detroit from 1903. The company has its presence globally barring a few countries.The expansion of Ford has been done through many business tie-ups and partnership contracts. This information makes it necessary for the investors as it influences and determines the future growth of Ford. The major business tie-ups are as below -

1. Ford Joint Venture with Sollers - This is a Russian tie-up and has allowed Ford to expand profitably in Russia since the last 8 years. This partnership amounts to nearly 12% to the bottom line of the company.

2. Ford and Changan Automobile - This is a Chinese partnership that allows for production in China and capture 3% of the total market share of China.

3. Ford and India - Ford has been in India since 1998 but in 2019 a joint venture with Mahindra and Mahindra has allowed Ford to solidify ita position in India with a sale of over 100,000 units every year.

4. Ford has a subsidiary ownership in Europe which allows for sales across France, Gemany and UK. The Brexit agreement has influenced Ford and investors must take note of this as a major factor.

5. Ford and Volkswagen have come up with a world-wide partnership that allows them to share knowledge and market their products more aggressively in the market. In future this would continue to have a huge impact on investor's wealth.

The above are the major contracts that influence the revenue of the company and should be carefully reviewed by investors as a sway in these contracts can lead to heavy volatility in the market.


Related Solutions

What would an investor need to know for making an investment decision on Ford Motor Comapny...
What would an investor need to know for making an investment decision on Ford Motor Comapny legal point of view (what specific analysis would help the investor make an informed decision)? [200 words or more] Thank you for your time and effort. Will give thumbs up.
What would an investor need to know for making an investment decision on Ford Motor Company...
What would an investor need to know for making an investment decision on Ford Motor Company marketing point of view (What specific analysis would would help th einvestor make an informed decision)? [200 words or more] Thank you for your time and effort. Will give thumbs up.
Is Ford Motor effective at developing and manging external partnerships? [As a need to know investor:...
Is Ford Motor effective at developing and manging external partnerships? [As a need to know investor: Please have 200 words or more][Will give thumbs up]
As a detective seeking evidence [need to know investor]: Does Ford Motor have an effective leadership...
As a detective seeking evidence [need to know investor]: Does Ford Motor have an effective leadership model (that supports the objectives) fostered and effectively deployed ?
Are Ford Motor JIT practice effectively developed? [As a need to know investor: Please have 200...
Are Ford Motor JIT practice effectively developed? [As a need to know investor: Please have 200 words or more][Will give thumbs up]
As a detective seeking evidence [need to know investor]: How well does Ford Motor focus and...
As a detective seeking evidence [need to know investor]: How well does Ford Motor focus and capitalize on individual differences?
What are the two basic methods of accounting for long-term construction contracts? Indicate the circumstances that...
What are the two basic methods of accounting for long-term construction contracts? Indicate the circumstances that determine when one or the other of these methods should be used.
What are the characteristics of short-term and long-term liabilities? What are some examples of each that...
What are the characteristics of short-term and long-term liabilities? What are some examples of each that you own? How do businesses account for at least two long-term liabilities?
One day, investor A takes a long position in 10 contracts of a certain futures, and...
One day, investor A takes a long position in 10 contracts of a certain futures, and investor B takes a short position in 10 contracts of the same futures. If this is the only transaction for the futures on the day, the trading volume for the futures is 20. Group of answer choices True/ False
Part 1 – Current and long-term investments: From the perspective of a potential long-term investor, describe...
Part 1 – Current and long-term investments: From the perspective of a potential long-term investor, describe what you might look for when examining the assets of a corporation. Include in your answer an understanding of how short-term assets and long-term operating assets are different and what role they each play in a company’s performance. Part 2 - What might the different asset balances indicate to you as they change from year-to-year? Part 3 - What relationships would you look for...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT