With the dawn of the new century, legacy health care costs, higher fuel prices, and a faltering economy led to falling market shares, declining sales, and diminished profit margins. Health care costs for an aging workforce, soaring gasoline prices, eroding market share, and an over dependence on declining SUV sales. Profit margins decreased on large vehicles due to increased “incentives” (in the form of rebates or low interest financing) to offset declining demand. In the latter half of 2005, Chairman Bill Ford asked newly appointed Ford Americas Division President Mark Fields to develop a plan to return the company to profitability.
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