This year, Ford Motor Company has reorganized our business units across the globe. So, through the platform of "Business 101", we would like to explain the changes Ford has made.
The topic of this Business 101 is Business Unit Reorganization.
When Ford reports automotive profits, we separate our results into business units. In 2013, we had four automotive business units, but in 2014 we have restructured into five. We have reorganized our business unit in order to increase focus on growth markets and to ensure clear responsibility and accountability for all markets within each geographical region.
This also includes the realignment of our direct export markets on a geographical basis, and having revenue and profits for direct export markets report on a “where sold” basis, not on a “where produced” basis. And since our business units have been reorganized, we have had to adjust how we communicate our financial results as well. Ford still uses a Year-over-Year analysis to explain our financial results to our investors, but we’ve recut the Company’s 2013 reporting to reflect the new business structure, so now we can compare AP in 2013 and AP in 2014—comparing apples to apples, instead of apples to oranges.
Click here to get an overview of Business Unit Reorganization, what has changed, and to see which markets are now part of our region.
We hope you find this information helpful, and we invite you to share your opinions with us at Go Further AP (firstname.lastname@example.org). If you have ideas for future Business 101s, please let us know.
CFO, Ford Asia Pacific