For much of the 20th century, the Ford Motor Company (FoMoCo) was a representation of American build quality and manufacturing expertise. From a legacy of innovation under its founder Henry Ford, the company pioneered the assembly line, created the Model T, and built decades of iconic vehicles such as the F-series trucks and the Mustang. FoMoCo was on an upwards spiral, becoming one of the “Big Three” of American auto industry, along with General Motors and Chrysler Corporation.

But over the past 30 years, Ford has struggled to keep up — losing market share, declining in innovation, and watching competitors take over the market share, particularly in the electric vehicles race.

Once a hallmark of the auto industry, Ford now faces shrinking profits, internal turmoil, and an uncertain future ahead. What happened to FoMoCo? From missed opportunities in new and emerging markets to slow adaptation of new technology, one of America’s most prized and historic companies is currently facing an uphill struggle in the past three decades.

FoMoCo’s Legacy

Ford’s legacy is well known both domestically and internationally thanks to its golden era during the 20th century. We all recognize icons such as the Ford Model T, Model A, the F-series of trucks, the Bronco, the Mustang, the Thunderbird and the GT40 made to compete with Ferrari — all engineered and designed by FoMoCo. These cars showed consumers domestically and internationally that FoMoCo was still an innovator just as they were when they first started. FoMoCo was the pride of Americans, along with GM and Chrysler — it evoked patriotism, an assurance of quality, and affordability compared to European imports such as Mercedes-Benz and Volkswagen.

In spite of this golden age, Ford is shown to have declined in ingenuity and innovation, overtaken by competitors both foreign and domestic. Tesla’s market share of 44.4% (2024) in the U.S. electric vehicles (EV) market alone dominates FoMoCo’s 8.7%, which sits at fourth place behind GM (12.6%) and Hyundai Motor Group (11.4%).

Ford holds 0% market share in the small vehicles market after pulling out in 2018, allowing for competitors to fill the void. Ford is still successful in the SUV and truck markets, with models such as the Bronco, the Explorer, the Expedition and their tried-and-true truck lineup. 55.7% of vehicles sold in 2024 were trucks, 42.1% being SUVs, while the rest being vans and other vehicles. It equates to a total market share of 12.8%, trailing behind GM and Toyota.

So how did FoMoCo lose its edge in the U.S. auto market?

Enter the 1990s: Initial Cracks

During the 1990s, Ford was increasingly focused on their SUV and truck platforms, based on the appearances of models such as the Chevy Blazer, Suzuki Samurai, Honda CR-V, the Jeep Grand Cherokee and the Toyota 4Runner. This shift in funds caused FoMoCo to neglect their small vehicle models, leading to a decline in quality, as seen in the Ford Taurus (once a legendary sedan in the 1980s) and flops such as the Ford Contour. FoMoCo’s luxury brands Lincoln and Mercury also took a hit in quality, losing their unique charm and becoming more just Fords with leather seats, while other luxury brands became more unique.

Ford is notorious for the Bridgestone Scandal during this period — responsible for over 300 deaths and 500 injuries. Tire manufacturer Firestone produced tires that were prone to tread separation, causing sudden tire blowouts. Combined with the Ford Explorer’s high center of gravity, rollover reports skyrocketed. FoMoCo had to settle a $3 billion lawsuit and end the partnership between FoMoCo and Firestone. This damage in reputation allowed competitor brands such as Honda and Toyota to capitalize on the SUV market, proving they are more reliable than their American counterparts.

Another crack is Ford’s lack of innovation to emerging trends. The Toyota Prius was launched in 1997, and Ford did not have a hybrid model until 2004, with the Ford Escape. Additionally, Ford did not make many luxury SUVs to compete with models such as the Lexus RX and the Mercedes ML. The Lincoln Navigator was a rare sight compared to other luxury companies.

Ford had already started to fall behind competitors both domestic and foreign. Consumers preferred the fuel efficiency and reliability of Japanese imports, luxury buyers bought European and Japanese luxury brands as there was practically nothing from FoMoCo, and enthusiasts preferred the Camaro over the comparably sluggish Mustang.

All of this was part of the leadership’s “bean counter” fiscal policy, prioritizing short-term cost cutting and profits over innovation. The early signs showed that FoMoCo was a sitting duck while rivals out-innovated the company. By the time of the Great Recession, FoMoCo had no safety nets to recover smoothly.

2000s: Financial Crisis

Back in the 2000s, Ford really started to show its lack of innovation. A lot of it came down to outdated designs and quality problems. Take the early 2000s Focus—people liked the idea of a small, affordable car, but it was riddled with issues like electrical failures and rough transmissions. When Ford rolled out models like the Five Hundred and Freestyle, buyers weren’t impressed—they just felt bland and behind the times. Decent cars in the market, sure. But it reinforced the idea that Ford was unappetizing and for people with no stylistic taste. Those cars were cut off after one production run due to low performance in the market.

While all of this was going on, overseas competitors such as Toyota and Honda were building reliable, fuel-efficient cars that people actually wanted. Ford, on the other hand, was still banking on big SUVs and trucks—right as gas prices were climbing. Then the 2008 financial crisis hit. Car sales tanked, credit dried up, and Ford was bleeding cash. Unlike GM and Chrysler, they avoided bankruptcy, but only by mortgaging assets and overhauling everything under new CEO Alan Mulally. It was a rough decade that forced Ford to finally rethink its entire strategy.

2010s: “One Ford” Strategy

After the financial crisis, Ford made it back. After the chaos of the 2000s, Alan Mulally’s “One Ford” strategy brought focus and discipline. The Fusion finally looked like a car people wanted to drive, the Explorer got a stylish reboot, and EcoBoost engines gave buyers performance without killing fuel economy. For a while, it felt like Ford was back on track.

But then came the pullout—dropping sedans almost entirely to double down on trucks and SUVs. They were the biggest sellers in the U.S. market, but was abandoning cars really the move for a brand that once gave us icons like the Mustang and the Taurus? And while Ford’s pushing into electrics with the Mach-E and F-150 Lightning, it’s still playing catch-up to Tesla and others.

Ford has the legacy, the name, and the resources, but the question still remains. Is Ford cooked or are they cooking? Will we see FoMoCo reinvent itself in this decade?