Ford plans to increase presence in Asia

By Angel Cuala on Aug 27, 2010 in Automobile, Business • No comments

Ford Motor Company announced on Thursday its plan to increase presence, particularly in the fast-growing Asian and African markets, and will account for 70% of Ford’s global growth over the next decade.

Ford plans to launch eight new vehicles in India in the middle of the decade to meet the rapidly increasing of demand overseas.

While Ford Figo subcompact sold more than 30,000 vehicles in 25 weeks which was launched in the first quarter, Fortune 500 escalated more than 1% in morning trading, according to the company.

The Figo was designed exclusively for overseas markets that have a preference of small vehicles. Exports to South Africa began in May. Ford also plans to export the subcompact to 50 new markets starting in 2011, which includes Mexico, North Africa and the Middle East.

Analyst for CRT Capital Group Kirk Ludtke said “The transaction prices might be lower in India, but the vehicle (Ford Figo) itself is probably equipped in such a way that they can deliver it at a profit.”

“It’s very important for car manufacturers to be in emerging markets, because that’s where the growth is,” Ludtke added. “Over time, as the economy develops and as average incomes increase, the consumers in those areas can afford increasingly expensive vehicles, so carmakers can benefit from a favorable shift and mix.”