The Challenges and Opportunities Facing the Ford Motors Company Essay

The Challenges and Opportunities Facing the Ford Motors Company - Essay Example This research will begin with the statement that Ford Motors is a U.S. automaker and is among the leading automakers in the world. Ford was incorporated on June 16, 1903, by its founder Henry Ford. The company’s headquarters is based in Dearborn, Michigan. Ford has emerged as one of the automaker giants in the world. For instance, the company ranks fourth largest automobile company globally and second largest in America according to annual sales volume. Ford sells in a variety of brand names such as Ford, Mercury, and Lincoln. The company has also been the manufacturer of Land Rover and Jaguar, which were sold off to Tata, an Indian automaker. In the U.S. market, the company currently ranks second after General Motors, which is the world’s leading automaker. PESTEL analysis implies political, economic, social, technological, environmental analysis that helps in understanding the macro-environmental factors that affect the operation of Ford. These factors are discussed h ereunder: Politics of a country is very important as far as far as car manufacturing is concerned. The U.S. politics influence the legislation and laws by which car manufacturing companies like Ford operates. For instance, Ford’s operation has hugely been affected by the political pressure from the government of the United States regarding the global warming caused by greenhouse gaseous emissions. In this regard, the government has imposed certain measures aimed at limiting the level of gaseous emissions that a particular vehicle has to emit to the environment. This has threatened the operation of Ford because complying with some of these laws is not easy, as they require a total change of the manufacturing process. Ford is also required to comply with the tax policies imposed by the government. The changes in tax policies by the U.S. government particularly by increasing taxes on the automobile industry has affected the operation of the company in recent times where it servi ce high taxes in order to be able to operate. For instance, the idea to introduce a road tax proportional to the number of gaseous emissions is affecting the company’s operations.