The automaker's centennial celebration has been marred by the economic slowdown, which has impacted the traditional Big Three car companies, but more so on Ford and the Chrysler Group of DaimlerChrysler AG. Ford produces seven of the top 20 vehicles, including the No. 1 pickup truck, the F-Series, and the No. 1 sport utility vehicle, the Explorer, but the Japanese big three--Toyota, Nissan, and Honda --have successfully dominated the car market and are now launching full size pickup trucks and sport utility vehicles in the market segments that Detroit still holds majority control.
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| Ford produces seven of the top 20 vehicles, including Explorer the world's No. 1 SUV, but the Japanese big three are increasing pressure. (Photo: Ford Motor) |
While General Motors has tremendously improved its productivity during the past five years, its market share has slipped below 30 percent and even with high incentives on its cars; it has only slightly improved its share. Ford and Chrysler have been forced to follow GM's incentive war, with Chrysler going from an anticipated $543,000 (US$400,000) profit for the second quarter of 2003 to projecting a staggering $1.63 billion (US$1.2 billion) loss.
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| After 100 years of production there is speculation that Ford may be skirting on the edge of bankruptcy. (Photo: Ford Motor) |
Some automotive analysts have projected that GM, Ford and the Chrysler Group are skirting the edge of bankruptcy due, in part, to their pension obligations to older workers, a problem that their foreign competitors are not burdened as much with, and due to the high vehicle incentives that are draining their profits.
Edsel Ford demurred when asked to comment on the financial status of the Chrysler Group, saying that such questions would be better directed to his cousin, company chairman and CEO Bill Ford Jr. However, when asked if the automaker is looking at a future where it will be a significantly smaller company, he replied, "That's not something we've talked about."