Ford’s Cost Cutting Strategies Essay

Lack of competitive strategy coupled with the economic downfall brought the big three to their knees. This generated a call to action and forced a shift in quality, perceived value and brand loyalty. While GM and Chrysler took the bailout from the American government, Ford sold off nearly 1/3 of its debt through the exchange of stock, sales of Hertz rental, reduction of 2,700 American jobs and by restructuring market operations.While the American auto industry makes up over 50% of global sales, it is important to note that American auto makers have been slipping in sales and quality ratings for decades.

The U. S. Auto industry has lost almost 10% of its global market share, while Asia has gained a lofty 9% market share.

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With the exception of Fords F-series, Taurus and Expedition the rest of the lineup has been mediocre at best. Ford newest CEO recognizes that innovation and value proposition is key to regaining market share in an industry that is fast changing.In the wake of slumping sales and the collapse of the big three, Ford has standardized it’s product offerings for both its brands, Ford and it’s luxury brand Lincoln. Ford has helped its perception of leadership and quality nearly 37% in the last five years largely in part due to rejecting the bailout moneys and implementing ONE, a new standardized strategy that includes cutting costs and integrating the same frames and parts for both lines, a reform in the internal focus of corporate image and branding, and lastly by emphasizing fuel efficiency on new model line ups.