Influence of technological change in Ford.

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Influence of technological change in Ford

Generally speaking, technological changes have an enormous impact upon business, resulting in new products and markets and new methods of production and distribution. Ford Motor Corporation, which is the largest motor manufacturing company in the world, is huge influence by technological change that impacts upon Ford’s investment, innovation and leads to uncreased employment.

On 2 Oct 2001, the Ford motor company announced that it would increase its share of ownership from 13.5 to 19.5 in Ballard Power System, which is the world’s leading producer of fuel cell components; this will increase the company’s commitment to the development of advanced powertrain fuel cell systems. Investment is the increase in the stock of capital over time, which is the second input into the production process after people; investment will serve to increase the productive potential of the firm. According to Wayne Booker, vice chairman of Ford Motor Company, their investment in fuel cell technology was extremely important to the future of the Ford Motor Company, and they had a history of investing the resources needed to develop environmentally responsible products and bring them to market in the fastest, most effective way. Therefore investment is important for the firm as it is a mechanism for growth and it is an important part of the innovation process which showed that Ford invested more in advanced technology instead of normal fuel vehicles. And what is more, this satisfies customers’ desires for fuel cell vehicles and related technology. Because technological change in new type of vehicle can bring extra profits, Ford will continue to maintain a significant interest in the advanced electronics and powertrain systems, as Booker said. Consequently investment can form the basis for improvements in technology which bring about new ways of producing goods and will lead to greater investment.

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The impact of technological change does not only show in Ford’s investment, but also in innovation. In January 2001, Ford Motor Company announced that new technology, 42-volt electronic system, which accurately controls fuel injection, would be used in Ford’s new sport vehicles in 2004. It will replace the 14-volt standard that has reigned since 1955. It shows that product innovation, which technological change leads to, is the development of new product, which will have far-reaching effects on business. New product impacts upon the product of company, as new product grows and old product disappears. Product innovation also has an ...

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