Ford is 100 Years Old
This week, Ford Motor Company officially celebrates its 100th anniversary, a milestone which few companies in the world’s largest single industry have reached. While Henry Ford was not the man who invented the car, he was certainly the one who popularized it and brought it within reach of the masses. He put mankind on the road to the future and in doing so, changed life in a very significant way, extending the horizons of the individual beyond those that could be reached through only personal physical energy (or with the aid of animals).
“In terms of economic and social influence, no company had a greater impact on the lives of people around the world in the 20th century than Ford Motor Company,” said Chairman and CEO Bill Ford. “We helped put the world on wheels by mass-producing simple, reliable automobiles that the average family could afford. Clearly, that’s a legacy worth celebrating.”
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Among the many lasting legacies of Henry Ford are the widespread use of the moving assembly line which revolutionized manufacturing and made it possible to offer cheaper and more affordable cars, the introduction of the US$5 per day wage that helped create the working middle class in the United States, and the creation of the Model T, voted “Car of the Century” by a panel of international journalists in 1999.
“If you look at our 100-year history,” Bill Ford said, “it’s clear that our success has always been driven by great products. Our centennial gives us an opportunity to rededicate ourselves to that heritage of outstanding products, and use it to build our future.”
Ford’s global presence began even from its early days of business with factories being set up in Europe and then in other continents. While it is hard to find official records of the first Ford cars in Malaysia (then Malaya), there is sometime mention of the cars in historical writings. In one book on the history of the country by noted historian J.M. Gullick, the author wrote about a Ford being owned by a well known Chinese businessman in the first decade of the 20th century.
It has always been Ford’s philosophy to build its products where they are sold, not just because it makes better business sense but also because the company knows such an activity can contribute to the host nation’s economy. Thus, before long, an assembly plant was established in Singapore in the early 1940s to serve Malaya as well. The plant remained in operation till the late 1970s when the Singapore government’s policy relating to management of the vehicle population limited sales and made local assembly pointless.
By then, Malaysia already had assembly operations for Ford vehicles which had commenced when the Malaysian government announced a local assembly programme in the mid-1960s. Ford had appointed Associated Motor Industries (AMI) in Shah Alam, Selangor, to assemble some of its products which were sourced from Europe. The products were models like the Escort, Cortina and Granada.
Ford also set up a representative office in 1972 to handle marketing activities and this was in operation till the early 1980s when the company decided on a new strategy for Malaysia, going into a joint-venture operation with Tractors Malaysia (a Sime Darby unit) to form AMIM Holdings Sdn Bhd. By then, the source of Ford models had switched to Japan where Ford and Mazda had started joint product development for Asian markets from 1979. The first products were the Laser and Telstar, both of which were very well received when they were launched and went on to challenge the Japanese makes a their own game.
During the mid-1990s, Ford reviewed its operations in many parts of the world, including Malaysia, and decided that it needed greater and more direct involvement in its markets. In the words of Wayne Booker, a vice-chairman of the company during that period, “Ford had to control its own destiny”. Until then, Ford’s business model had been to let distributors and dealers handle the business of selling its vehicles in the various markets.
This led to an increase in Ford equity to 30% in AMIM Holdings in the initial phase in the late 1990s, and then another increase to 49% by 2000. By then, AMIM Holdings was renamed Ford Malaysia Sdn Bhd to reflect Ford’s substantial presence. This development saw a major change in Ford product planning and additional investments in the plant. Ford had representatives on the board and senior executives in top management positions, as well as stepped up the number of manufacturing personnel coming and going to assist in assembly operations.
“Once our equity rose to such a significant level, the Malaysian operations began to be noticed in Dearborn, Michigan [where Ford’s World HQ is situated]. It meant that we would receive more attention in terms of product development and quicker response to market demands which required model upgrades or changes,” Richard Canny, the first MD of Ford Malaysia, told AUTOWORLD.COM.MY back in June 2000.
As Ford passes its 100th year, the commitment to all its markets is even stronger and more significantly, its desire to be a good corporate citizen wherever is does business. It not only sells vehicles but also helps in community activities through various sponsorship programs.
“At Ford, it’s not only about profit. We believe in our responsibilities to the communities in which we operate and the world as a whole. We at Ford Malaysia believe that we must give back to the community,” said Deborah Aronson, MD of Ford Malaysia today. “Over the last 3 years under the Ford Motor Company Conservation & Environmental Grants Programme, over RM700,000 has been given to local conservation and environmental groups who were spearheading efforts to preserve and improve the environment, and this programme is a continuing effort. Ford Malaysia employees have also conducted several community initiatives such as spending quality time with Down’s Syndrome children and senior citizens.”
“Ford has been in Malaysia for over 40 years and we have our roots firmly planted in Malaysian soil. We are very proud of our history and contribution here in Malaysia. We have been, and will continue, to invest in Malaysia and the people in Ford Malaysia. We believe very much in the future of this country and are very proud to be a part of it,” she declared.
HAPPY BIRTHDAY, FORD!
