What does a Financial Analyst at Ford do?

What does a Financial Analyst at Ford do?
2018-07-11T18:28:03Z 1
2018-07-11T18:28:03Z

Former Finance Analyst at Ford Motor Company

over 1 year ago
I worked at Ford's Product Development Center (PDC) in Dearborn, Michigan. That is where all the new cars are hand assembled before going to the production lines at various areas around the country. Ford, if I recall correctly, molds clay models of its products in California, as do many of the other car companies. But the actual models are put together underground at the PDC. For my part, as a finance analyst, I was responsible for tracking four vehicle lines models' costs, i.e., I tracked the cost of four different kinds of cars. I don't recall which ones now, sorry. One of them was the Ford Transit Connect, or something like that, now that I think about that. Think about it this way: a car has a particular number of parts. Each part has a cost, which, when put together, has a total cost. If all those costs are too much when put together, that car is priced out of the market. Ford and all other car makers know more or less what their public will pay for a particular kind of car nowadays. So they need to see the cost of each part and make sure that each one is as low as can be without destroying the profit of the supplier who supplies them, because if you do that, you don't have a supplier. So there is a hard fight in getting both the price point of each supply correct and being able to charge a fair price to your audience, or car purchaser, as well. If you get that wrong, you can't see your vehicle line, lose profits, and ultimately go out of business. When the price of an individual part changes (and they did weekly), if could have a big ripple effect across your entire model line of cars, in either a good or bad way, depending. Ford wanted and needed to know how things were tracking, which lead up the line and allow it to ultimately guide revenues and earnings forecasts to its stockholders. In the auto industry, you are always hedging here and hedging there. It is fascinating.
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