Founded by Henry Ford in 1903, Ford is the second biggest US carmaker. It weathered the Great Depression intact, but only survived the Global Financial Crisis by raising more than US$20 billion in cash and mortgaging its trademark blue oval. It was the only major US carmaker to avoid a US government bailout.
China sales key to Ford's Asia target of 1 million cars this year
Ford is catching up to its competitors in key Asian markets and expects to sell more than one million vehicles there for the first time this year, a senior executive said Wednesday.
Key to that growth is China, where Ford’s sales were up 51 per cent in the first nine months of the year to 647,849 vehicles, said David Schoch, Ford’s group vice-president for the Asia-Pacific region.
“We’re gaining a lot of traction with the new products we’ve brought into China,” Schoch said.
The second-largest US carmaker expects to double its market share in China to nearly 5 per cent by the end of this year from 2.5 per cent last year, he said.
“We expect Ford Asia-Pacific to be a major contributor to Ford profits by the middle of the decade,” Schoch said.
He acknowledged that Ford was “slow” to enter the Asian market, and the plan to expand in China wasn’t put in place until four years ago.
Prior to that, Ford was distracted by a lengthy period of serious financial problems and a major reorganisation.
Rival General Motors was much faster to move into the Asian market and is expected to sell more than three million vehicles in China alone this year.
Ford is building manufacturing hubs in China, India and Thailand and recently relocated its regional headquarters to Shanghai.
While those plants will boost Ford’s regional capacity of 1.9 million units – which vastly exceeds current sales – the carmaker is also moving ahead with the construction of six new regional assembly plants, including four in China.
That will bring total capacity to 2.9 million vehicles by 2015.
“When you’re in these emerging markets, you have to think long term,” Schock said. “We have very aggressive growth targets.”
Ford is also expanding the number of models it sells and will soon be introducing the Fiesta, the Mondeo and the Transit Van to the region.
The carmaker expects that China – and the region – will play an increasingly important role in the global car industry.
Annual vehicle sales are expected to hit 32 million in China by the end of the decade, more than in the United States and Europe combined, Schoch said.
Meanwhile, sales in the Asia-Pacific region are expected to make up 46 per cent of global sales in 2020, up from 41 per cent this year. Ford also forecasts that global vehicle sales will rise to 109 million in 2020 from 82 million this year.
In addition to China, Ford’s Asia-Pacific region includes India, Vietnam, Indonesia, Thailand, Myanmar and the Philippines.