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Bus Adm 600

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Brian Laitsch Bus Adm 600-­‐006

CASE FIVE Case 5: Ford and the World Automobile Industry in 2012 This case explores the development and evolution of the automobile industry. Although this case covers the industry and all of its major players on a global level, a large portion of it is about the U.S. automakers – especially Ford. The automobile industry is one of the largest industries in the world, and like every other industry, it is not always a profitable one. Because of saturated markets, new competitors, environmental concerns, new technologies, and the growing use of electronic cars, has had a strong impact on the industry.

Similar to other industries, the rapid growth of technology has caused automakers to constantly adjust their manufacturing process and product designs. This technology boost allowed car manufactures to now produce cars in a fraction of the time it took previously. This lean production allowed plants to increase their capacity and output. This growth of production capacity had surpassed the growth in the demand for cars. This caused an extreme surplus of cars and excess capacity – especially in North America. This new technology also prompted

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