Ford steps up One Ford Plan in Asean markets

Sales of Ford motor vehicles rose 8 percent to 96,000 units in the Southeast Asian market last year, indicating the successful implementation of the One Ford Plan in the region. At the Bangkok International Motor Show last week, Ford Motor Co. sought to continue the momentum by showcasing its growing lineup with the Everest Concept, the 1.5-liter 2014 Fiesta and the all-new EcoSport mini urban SUV as the main attractions among the 18 Ford vehicles displayed.

 

Ford is aiming for an annual sales target of 8 million globally by mid-decade and expects 60 percent of its sales growth to come from the Asia-Pacific region, with Asean markets including the Philippines playing a significant role. Ford’s changing geographic mix of volume shows that in 2000, Asia-Pacific and African markets comprised only 4 percent of Ford’s total sales worldwide. By 2010, these “emerging markets” had grown to 15 percent of Ford’s total global sales and by 2020, the percentage is projected to increase to 32 percent.

 

Global Vehicles. At an open forum with Philippine motoring journalists during Media Day at the Bangkok International Motor Show, Ford Asean president Matt Bradley said that the auto show gave Ford the opportunity to bring more segment-leading global Ford vehicles to consumers in Thailand and across the Asean region. Ford’s manufacturing hubs in the Asia-Pacific are in Thailand, China and India, in sync with the One Ford objective to align product development, manufacturing and marketing organizations worldwide to deliver the right products to the right markets as efficiently as possible. (This may explain why the Ford assembly plant in Sta. Rosa, Laguna, was shut down in December 2012 and why Ford will stop production in Australia in 2016 after 90 years of manufacturing there. Reason: locally made Ford products are unprofitable while imported products are profitable in Australia.)

 

The One Ford Plan is focused on only two brands: Ford and Lincoln.  According to the Ford website, One Ford encourages focus, teamwork and a single global approach, aligning employee efforts toward a common definition of success. It emphasizes the importance of working together as one team to achieve automotive leadership, which is measured by the satisfaction of Ford customers, employees and essential business partners, such as dealers, investors, suppliers, unions/councils and the communities in which Ford operates.

 

ECO-CARS. Adhering to the One Ford practice of anticipating and responding to changes in customer demand, Ford is studying the eco-car market, including the sub-B segment below 1.5 liters. At the media forum in Bangkok, Ford Asia-Pacific president Dave Schoch said that Ford at present does not compete in the sub-B market and their B vehicle, the Fiesta, is premium B. On the other hand, Ford Thailand managing director Yukontorn Wisadkosin told The Bangkok Post last Wednesday that the domestic eco-car market “still has potential for Ford.” If Ford manufactures an eco-car in Thailand, can exporting it to other Asean countries be far behind to compete with the Mitsubishi Mirage, Toyota Wigo and Hyundai i10?

 

Ford’s changing product segmentation indicates that small vehicles made up only 29 percent of Ford’s global sales in 2000. By 2010, it had increased to 48 percent and in 2020, it is projected to grow to 55 percent. For Ford, the best-selling brand in the United States in 2012, the small vehicle mix will continue to grow while large vehicles including trucks remain important. The outstanding success of the Ford Focus (the No. 1 selling vehicle nameplate in the world in 2012 and the personal ride of Pope Francis), the 1.5-liter and 1-liter EcoBoost Fiesta and now the 1.5-liter EcoSport mini urban SUV proves that Ford is responding effectively to changing consumer demand.

 

SALES 41% UP.  In the Philippines in 2013, Ford posted total sales of 13,285 units, 41 percent up over the previous year. The Ranger (the Wildtrak variant of which won the 2014 Truck of the Year Philippines award) accounted for one-third of overall sales and the Explorer was the second best-seller. “With each all-new global Ford vehicle that we introduce, we make further progress on our One Ford Plan,” Ford Philippines managing director Kay Hart said last Jan. 13. Ford topped the 2013 JD Power-Asia Pacific Sales Satisfaction Index Study for the Philippines, outperforming nine other brands. This year, Ford Philippines plans to increase its nationwide network of dealerships to 37.

 

For consumers like me, the biggest improvement that One Ford has achieved is the fuel efficiency of new Ford cars. Whereas before some Ford cars and SUVs were notorious for gas-guzzling, the One Ford Plan made a new global commitment, regardless of vehicle or region, to improve fuel efficiency. Technologies like EcoBoost, direct fuel injection, six-speed transmissions and hybrid and plug-in hybrid powertrains promise that, indeed, as the slogan says, you will Go Further in a new Ford.