Ford’s ‘One Ford’ strategy is to develop only global models, that means, one platform for all cars sold globally. Now, the analysts are saying that this strategy may not be suitable for the Chinese market as Ford is losing its market share to other companies and their current models have not been successful. GM outsells Ford in China because they sell cars specially developed for China like the Chevrolet Sail. Ford is developing an affordable sub-$10,000 compact car know as ‘Value B-Car’ for the Chinese market and it is expected to hit the roads by 2015.
‘B’ represents the B-segment the car is designed for and it will also be based on a global platform. This car will rival the second-best selling vehicle in China, the Chevrolet Sail. To make the Value B-Car affordable, Ford is planning to cut costs and improve margins by widening its local supplier base. The company is also planning to introduce several low-cost models including the “Value B” car by 2015. The Fiesta, Ford’s cheapest model in China, starts at $12,300 (approx Rs. 6.5 lakhs) and about one-fifth of China vehicle sales this year were priced less than $12,000 (approx Rs. 6 lakhs). Ford will launch its Fiesta-based EcoSport, next year, which will be the lowest-priced SUV in its portfolio. It is longer than the Indian and Brazil EcoSport.
Mr. Joe Hinrichs, Ford’s head of Asia and Africa operations said that the Ford Figo in India has been done on a legacy platform out of Germany, and it’s been a great vehicle for them, but they won’t do that again because they have their global strategy now. Ford is planning to introduce eight new products for India by 2015, which includes the newly launched Ford Fiesta and the soon to be launched Ford EcoSport. The ‘Value B’ car could make its way to India, with manufacturing happening at the Sanand plant. The vehicle could also spawn a sedan version that replaces the ageing Ford Classic.
Source – Reuters