It is clear than many of the automobile producers, Ford included, have based so much of their production activity on large vehicles, adapted to the then-necessities of the U.S. market, but nevertheless unsuited for the economic trends that saw high oil prices and an increasing concern for the environmental problems such cars caused.
Ford seems to have been one of the car producers that eventually realized the impact and danger of such a policy, but the current economic and financial crisis affected its operational activity and the viability of a statement declaring valid its change of path. Investments have since gone towards an attempt to change this approach and diverse the portfolio of product sufficiently for the company to survive.
Most likely, the right combination of access to the governmental funds and its own cash and credit line may bring about, at least in microeconomics theory, the economic salvation for Ford. However, this financial and microeconomic process will also need to be backed by the appropriate marketing and management actions and instruments that will allow the company to put to good use the money it still has.
Bibliography
1. Vlasic,...
January 2009. Ford Reports a Record $14.6 Billion Loss for 2008. The New York Times. On the Internet at http://www.nytimes.com/2009/01/30/business/30ford.html?_r=1&hp. Last retrieved on April 21, 2009
2. Brody, A. (1987). "Prices and Quantities," The New Palgrave: A Dictionary of Economics, v. 3, p. 957.
3. Jordan, J.S. (1982). "The Competitive Allocation Process Is Informationally Efficient Uniquely." Journal of Economic Theory, 28(1),
4. Hicks, John Richard (1939). Value and Capital. London: Oxford University Press. 2nd ed., paper, 2001
5. Baumol, William J. (2007). "Economic Theory" (Measurement and ordinal utility). The New Encyclopaedia Britannica
Vlasic, Bill. January 2009. Ford Reports a Record $14.6 Billion Loss for 2008. The New York Times. On the Internet at http://www.nytimes.com/2009/01/30/business/30ford.html?_r=1&hp. Last retrieved on April 21, 2009
Ibid.
Hicks, John Richard (1939). Value and Capital. London: Oxford University Press. 2nd ed., paper, 2001
Baumol, William J. (2007). "Economic Theory" (Measurement and ordinal utility). The New Encyclopaedia Britannica
