Aside from the obvious impact upon the Ford employees who found themselves out of jobs, a general effect was the increased unemployment rate. And this was not only because of the positions lost within Ford, but also because of the jobs indirectly lost due to the crisis at the American manufacturer. In a more simplistic formulation, the automobile maker had ongoing contracts with various suppliers and other intermediaries, purchasing various technologies and vehicle components. Once the demand for Ford automobiles had decreased and their supremacy was lost to the Japanese producers, they no longer required the services of all of their purveyors. Then, as the demand and production became reduced, there was also limited need for dealers store to sell the cars. Ergo, additional jobs were lost and the lives of more and more individuals were impacted.
The negative outcome could have been avoided had the company been more receptive to the changes affecting the environment. They should have realized the potential implications of the economic instability in the background of sky-rocking oil prices and they should have developed strategies to implementing change as an ongoing process strengthening and increasing the capabilities of Ford Motor Corporation.
The battle is not lost however. The American manufacturer possesses decades of expertise in the industry, has access to various resources and still possesses the highest skilled workforce and the latest technologies. Therefore, their revival is nothing farfetched. But even so, words and desires are insufficient to make an actual recovery and re-become America's number one employing and profit generating industry. Clear courses of action must be developed and implemented, and they must all promote change and...
Their supremacy was lost to the Japanese manufacturers because they adapted their products to the population's needs of fuel efficient and cheap upkeeping vehicles. Ford on the other hand continued to manufacturer large size and luxurious cars, hoping for a revival of the market. When this did not occur however, the producer was forced to close numerous plants and layoff tens of thousands of individuals. Even if the skies are not all that blue at Ford, with the support of their reputable brand and more than a century of experience, they can still recover and once again become the world' greatest car manufacturer.
Works Cited
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Ramstack, T., May 23, 2001, Ford Plans Total Recall of Wilderness at Tires, the Washington Times
Randall, K., August 2001, Ford to Cut Up to 5,000 white-collar Jobs in North America, World Socialist Website, http://www.wsws.org/articles/2001/aug2001/jobs-a18.shtmllast accessed on June 23, 2008
Studer-Noguez, I., 2002, Ford and the Global Strategies of Multinationals: The North American Auto Industry, Routledge
Woellert, L., April 13, 1996, Ford Boosts Stake, Takes over Mazda: Move Opens Door to Sales in Japan, the Washington Times
September 17, 2006, at Ford, Restructuring Now Job 1; Automaker Rides Bumpy Road in Rapidly…
