The key is in the ignition, the gears are set, the engine running in full throttle : Ford’s latest plan to greatly expand production and rival other car manufacturers is a step closer towards being number 1 in the car manufacturing industry. The No 2 U.S automaker in the world, according to the article, has targeted to build one – third more vehicles globally by expanding globally and adding more factories to increase production. This increases the economies of scale.

With the increasing commitment of boosting output and increasing margin, Ford could potentially attract further investment from stakeholders and increase their market share in the car manufacturing industry. However, Ford needs to consider the ethical implications of such a move; increasing working hours of employees might lead to disillusioned workers. In turn, disillusioned workers might demand higher wages increasing the factors of production for the firm, or workers might sway towards trade unions which would further stall Ford’s growth. In contrast, however, Ford could and is investing in better technology to optimize and increase production efficiency and hence the aforementioned scenario might not occur. Regardless, increasing efficiency through adding more factories and expanding globally would help increase efficiency and production and might reduce variable costs per unit due to operational efficiencies which could benefit Ford in innovation of new products thus resulting in increased investment and greater growth.

References:

https://www.youtube.com/watch?v=tl8f4CLb5x0

http://www.theglobeandmail.com/report-on-business/international-business/us-business/ford-aims-to-make-its-factories-more-flexible-efficient/article14725318/

http://finance.yahoo.com/news/ford-aims-factories-more-flexible-180233234.html