what do you see as the 3-4 top priority issues for CEO Jim Hackett? At a minimum, your recommendations must address the 3-4 priority issues identified in question 6.

The years before the Bronco was disconti und, the automobile gained a great deal of atten tion when Al Cowlings drowe OJ Simpson down * Los Angeles freeway after Simpson charged with the murders of his wife and her friend. More than 95 million people across the United States watched the two hour pursuit on television while crowds gathered on overpasses to cheer on the NFL football legend cvents and other factors wich the COVID-19 vins threat in 2020 Some of the greatest challenges to Ford in 2020 Mentified by management included the following 1. Acceptance of new and exiting products by the market 2. Sales of more profitable larger vehicles, especially in the United States 3. Increased price competition resulting from indus try excess capacity 4. Puctuations in commodity prices for exchange rate and interest rates 3. Global macroeconomic factors such as proto tionist trade policies and other events including Bredt 6. The company's ability to maintain a competitive cost structure 7. Pension and other post-retirement liabilities 8. Defects that result in delays in model launches 9. Operational systems could be affected by cyber Incidents Ford Credit Company Although the company experienced profitability di ficulties in 2018 and 2019, its financial arm. Ford Credit Company. posted its best results in 2019 of the past nine years. Their profits jumped to $3 billion before taxes. The result was that this arm of the com pany accounted for 50 percent of Ford's profits. This was up from 15 to 20 percent in the past. Ford Motor Company had, thus, been able to subsidie Ford's losses and allowed the company to maintain a bih dividend Yold. Unfortunately, data reted by the New York Federal Reserve Bank in late 2019, Inde cated that the volume of 90+ days delinquent loans had the sharply. The value of the overall auto loan and lose balance had surged to $3 trillion that year. In addition, subprime loans reached $66 billion in the final quarter of 2019, There were several tisks for the company in the 2020s regarding the Fond Credit Company. One tisk was that this financial arm of the company could experience higher than expected credit losses, lower than anticipated residual values on higher than expected return volumes for leased vehicles Another Tik was that Ford Credit could face increased com mitutions or other third par Ford and the Coronavirus Pandemic. In carly 2020, new virus called the coronai of COVID-19 been to cause serious illness and death round the world Because of an increasing incidence of this in the United States, many was declared helter in place ander intended to prevent the spread of the Virus by forcing people to work from home. Ford on March 31, stated that it delaying the restart of a car plant in Mexico well four track SUV and van plants in the United Sate to help protect it workers. This postpone exchange rates, and interest rates 5. Global macroeconomic factors such as protec- tionist trade policies and other events including Brexit. 6. The company's ability to maintain a competitive cost structure. 7. Pension and other post-retirement liabilities 8. Defects that result in delays in new model launches 9. Operational systems could be affected by cyber incidents ficulties in 2018 and 2019, its financial arm, Ford Credit Company. posted its best results in 2019 of the past nine years. Their profits jumped to $3 billion before takes. The result was that this arm of the com- pany accounted for 50 percent of Ford's profits. This was up from 15 to 20 percent in the past. Ford Motor Company had, thus, been able to subsidize Ford's losses and allowed the company to maintain a high dividend yield. Unfortunately, datas released by the New York Federal Reserve Bank in late 2019, indi- cated that the volume of 90+ days delinquent loans had risen sharply. The value of the overall auto loan and lease balances had surged to $1.33 trillion that year. In addition, subprime loans reached $66 billion in the final quarter of 2019. There were several risks for the company in the 2020s regarding the Ford Credit Company, One risk was that this financial arm of the company could experience higher than expected credit losses, lower thun-anticipated residual values on higher than expected return volumes for leased vehicles. Another risk was that Ford Credit could face increased com petition from financial institutions or other third par ties seeking to increase their share of financing Ford vehicles. Finally, Ford Credit could be subject to new or increased credit regulations, consumer or data protection regulations or other types of regulations Challenges for 2020 The automotive industry is affected by micro- economic conditions over which the companies have little control Vehicles are durable soods, and con sumers exert strong choices about when and if they will buy a new car This decision is influenced by such factors as slower economic growth, geopolitical Ford and the Coronavirus Pandemic. In early 2020, a new virus called the coronavirus or COVID-19 begin to cause serious illness and death around the world. Because of an increasing incidence of this disease in the United States, many states declared thalter in place onder intended to prevent the spread of the virus by forcing people to work from home. Fond, on March 31, stated that it was delaying the restart of a car plant in Mexico as well as four truck, SUV and van plants in the United States "to help protect its workers. This postpone ment came just two days after President Donald Trump extended the national social distancing guide lines through the end of April 2020. The shutting down of the economy resulted in the loss of more jobs than had occurred since the Great Depression and the stoppage of purchasing non essential goods Because of a shortage of ventilators to treat coronavirus patients. Ford and General Electric's Health Care Division announced on March 30 that they together planned to produce 50.000 ventilators over the next 100 days. Ford planned to use a plant in Rawsonville, Michigan, and about 500 workers to 100% Source Olkar, 2003 Galar Auten My destinations for tomobile product. The historic methodology for manufacturing automotive vehicles was to assemble cars at a domestie plant and then export them to their final destination. However, the mupply chain has become more complex. The thin has been toward manufacturing cars close to their final destination to save on logistics costs. Another part of this strategy is to focus on very specific brand ing devices to appeal to the customer. An example of this is the logo "Made in America make 30,000 ventilators a month. GE had licensed the design of the ventilator from Airon Corporation of Melbourne, Florida. The device works on ait pres sure and does not need electricity. Both Ford and GE announced that Ford would help increase produse tion of another ventilator based on a design from GE Healthcare Global Automobile Status A survey of the mange of products and services pro vided by the global automobile manufacturing Indus try is shown below in Exhibit 5. Although the production of cars accounts for 36.6 percent of global Industry revenue, this was lower than its production volume because cars normally sell at a lower price than SUVs and com mercial vehicles. Therefore, they contribute less to revenue on a pervenit basis. The car segment had been growing as consumers opted for more fuel efficiency. Ford sales in the United States, however, showed a lower total sales of cars than trucks or SUV-se Exhibit Generally, Germany, Japan, the United States and Canada are expected to be the world's largest exporters of cars and automobiles (SUVs, trucks, etc.). On the other hand, Germany, China, the United Kingdom, and Belgium are expected to be the largest A Future Strategy By 2020, the Ford Motor Company Bourd had some difficult decisions to make. Although the developing economics of the world primarily demanded smaller atitomobiles, the deyeloped economies preferred the larger crossover, SUV, and truck. The com pany had already made a decision to discontinue the Ford Fusion, its largest automobile, and the public wondered if they would drop selling all of their cars except for the Mustang in the United States Another question that rose was What would happen to large vehicle sales if the price of petroleum rose to alarming rates again? That had seemed to be remote possibility until the United State Russia and the United Arab Emirates decided in the spring of 2020 to limit the daily production of petroleum There was also the question of what would happen it people began financing their vehicles at some place other than Ford Credit, and what could they do about that The Bound had much to think about they put their strategic plan together