Conduct your own research about 2008 crisis which affect these 3 companies differently- Ford, GM, and FCA.
Discuss the difference in reaction and outcome
The global crisis on 2008, not only affects the housing market or the financial market. It also affects the automobile market. “By Fall 2008, the “Big Three” US car companies of General Motors, Chrysler, and Ford faced potential insolvency, and without swift government intervention, their futures were in doubt.” (Pascus, B., 2018) Clearly some of these companies were more affect than the others. For example, Ford did a good job preparing itself before the crisis. Ford’s chief executive, Alan R. Mulally decided to get $23.6 billion in loans. In that moment this action was criticized “Mr. Mulally had been on the job as Ford’s chief executive less than 90 days when he asked for the loans.” (Vlasic, B., 2009) This action that some people saw as a crazy and unnecessary move, was the one that saved Toyota from being hitting so bad from the crisis.
Unfortunately it was a different history for GM and FCA. “Plunging car sales have driven its two American rivals, General Motors and Chrysler, to the brink of bankruptcy, forcing them borrow $17.4 billion from the federal government to stay in business.” (Vlasic, B., 2009) both companies were to bankruptcy because they don’t anticipate the crisis. Even though GM us to be more robust company than Ford before the crisis. GM was more disturbed by the crisis than Ford.
Lets remember that when the crisis detonate people where to afraid of buying stuff. They prefer save the money they have. Here is when Ford had to thing about renovates and innovate. They have money to start with their campaigns and marketing. “Since then, he has accelerated Ford along that path, pursuing a top-to-bottom transformation that extends from its global product lineup to its renewed focus on the Blue Oval trademark.” (Vlasic, B., 2009) People start choosing Ford vehicles more than GM vehicles. At this point GM and FCA Chrysler still figure it out of how to star over. It is a long process when, the company is not prepared and has to wait until in this case, the Federal Government help them with some resources. Now in 2020 the 3 companies are back in the market
Companies can’t predict every risk or crisis that can appear in the future, more if those are cause for external factors. For example many companies didn’t expect that a global pandemic will happened on 2020. Now, the companies that had or took smart decisions are the ones are going to survive. Fortunately for this industry this crisis of covid-19 make them going up. Their sales are getting better. Also the marketing that companies get along with the pandemic will help them to find a good position inside the market. Be aware of problems and take decision over it before it happens is the ideal, but in real life sometimes companies are not well prepare for crisis. They will have to find out the way to recover from it.
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