Ford plans to launch series of small cars in Asia

Ford Motor,the second largest car maker in Detroit, is all set to push its sales in Asia,particularly in China through introduction of a family of new small cars which will the focus of the company's product profile.In its pursuit towards small cars.Ford displayed a new version of Focus,its top most selling car in Detroit this week According to Alan Mully, Ford's chief executive,the company's strategy would be to move quickly to invest in one of the fastest growing economy China.The company is now converging on manufacturing a series of small and mid sized cars built on the platform,One Ford strategy something that is followed by the company on a global basis. The fundamental structure of the revamped Ford Fiesta will be common around the world except for the changes that will be required at the top of the car to meet with the local standards,rules and regulations.Around 10 models will be manufactured using the new platform,resulting in the production of 2m units annually by the year 2012.

The company,in its expansion of the plant has invested $500m.The plant will holds the capacity to build 200,000 cars and 250,000 engines,out of which a few will be exported.Ford plans to build a new car  Figo on the Fiesta platform in India at a plant in Chennai and plans to sell it under $8000 in the market.The comapny will also build its new car Focus at a new plant in Chongqing which will be at a running in 2012.Ford sold 440,000 cars and launched Fiesta in China recently. All this aggressive approach is the result of its lack of sales in India owing to the tough competition there.The company was able to sell 40,000 cars only during last year.

According to a survey done by Joe Hinrichs,who will take the charge of Asia Pacific region of  Ford Motors next week,70 percent of Indian customers and 40 percent of Chinese customers buy a car priced below $7500 which in his opinion will be a good opportunity for the company.But they do not wish to give competition to the world's most cheapest cars,Tata Nano by Tata Motors. Mr. Mullay conveyed his concern over the impact on the motor industry globally because of intervention from the government in its effort to prop up local car makers.He told the media that it is time when the industry understands its not about market share rather profitable growth.He further added that it will be hard to expect a practical response when one has overcapacity.