Wednesday, February 9, 2011

Ford GM comparison 1999- 2009








The story shows that Ford and GM are the two largest US vehicle manufacturers, and how Ford which had always been number two, had made big gains thru the ten year cycle, especially with its focus on trucks. However when oil prices began to spike in early 2008 it had a dramatic effect on larger vehicle sales and GM had expanded its total lead over FORD because of a larger number of smaller fuel efficient vehicles. However after GM accepted Government bailout money and FORD declined it, the buyers market showed approval to FORD by increasing sales. This created a closer market share for FORD starting in 2009 and subsequent years in began to produce more smaller cars and the market share was closing. So the huge market advantage that FORD was trying to take from GM, was affected by two major events, the price increases to over $4 a gallon ( was a tipping point ) and then the economy falling into a recession.