PI and Unemployment Ford Motor Term Paper

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The government estimates that quality improvements in light trucks have an estimated retail value of $361.76 (Robb and Schroeder, 2006). Improvements included many high demand items such as tire monitoring systems, better air bags, improved power trains, reduced emissions, and a number of other changed to standard option packages (Robb and Schroeder, 2006). The Bureau of labor Statistics reports that similar changes have been made to passenger cars, totaling $139.96 for the average 2007 model (Foster, 2006).

Drops in prices, combined with rising costs means that many other manufacturers like Ford will have to do some drastic restructuring. Ford's lay offs will add to national unemployment levels in the future.

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Ford has a solid plan for recovery, although it may not be fast enough for many analysts. Ford estimates that it will be in the black again by the end of 2009 (Gharib, 2006). The immediate future does not bode well for Ford, or any of the other major car manufacturers. New car prices and sales are closely tied to the Consumer Price Index and other confidence indicators. In order for the situation to improve, consumers will have to feel that they are comfortable making major purchases. Ford will return to profitability, it will just require a little belt tightening on their part......

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