Ford Motor Company

Corporate Issue Paper

"Failure is simply an opportunity to begin again more intelligently"
- Henry Ford - 1863 - 1947
Summary and Issue Identification
The events as they transpired in the fourth quarter of 2008 may certainly be considered the result of a nationwide economic failure, with the auto industry placed front and center in the full media spotlight, but for Ford it marked an opportunity to show a sense of responsibility and to shine as an industry leader. The “Big 4” U.S. automakers would find themselves having to report to Congress the reasons for the collapsing auto industry as well as each having to propose a plan as to how their respective company planned to turn business around and how they would use the bailout money which would amount to more than $100 billion. This tough stance by Congress was, perhaps, a response to the negative criticism and dismal public opinion that was surmounting after the insurance and banking industries had just received an even larger sum without such tough, and well-deserved, questioning.
During the course of the hearings, as the other three major automakers each accepted their cut, Ford chose an alternative solution. Rather than accepting the available bailout money they declined and, instead, presented a four-part plan to recover from their 3-year backslide, thus preserving the hundreds of thousands of jobs that would be affected if Ford Motor Company were to collapse.
The issue Ford is facing is twofold. Ford faces the challenge of making a rapid recovery from the toll that the economic recession has taken on today’s auto industry while simultaneously positioning themselves to remain a global leader in the auto industry of tomorrow.
Stakeholders and their incentives
Throughout the domestic automotive market collapse, Ford, and their attention to three particular major stakeholders, enabled the company to remain focused and operating efficiently.
Considering much of the grief within the market...