Thursday, August 26, 2010
Ford to Unveil 8 New Vehicles in India
With the increasing demand in the fast-expanding car market, Ford Motor Co. said it is going to introduce eight new vehicles in India by 2015. Mr. Hinrichs, president of Ford Asia Pacific and Africa, said industry sales in Asia Pacific and Africa will more than double to about 35 million vehicles by 2018, up from 16 million units in 2009. He also said that vehicle sales in India have grown at an average annual rate of 17% over the past five years, and that as many as 10 million to 11 million people will no longer use scooters and motorcycles and instead use small cars. While there is slower growth in the markets of the U.S. and Europe, it is a great idea for Ford Motor Co. to capitalize on the rising auto market in countries like India, and as well as in other countries like China and Brazil.
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I do think this is a great idea for Ford to start up business out of the United States because of the dramatic downfall car industries have gone through during the past couple of years. The Ford industry started in Michigan and Michigan's fall from the recession has concluded to Ford closing down many plants there and losing much business. Ford unveiling new cars in a different country is good improvement for Ford as a company.
ReplyDeleteI agree with Maria. The car industry faced a pretty big hit at the start of the recession. While it was one of the first industries to show growth as others were falling, reports today indicate that US car sales may be slowing again. This is going to force US automakers to start looking into other alternatives for survival. Increasing market share in foreign countries may be just what Ford needs. Furthermore, Ford's involvement in foreign markets could help improve the US GNP. Ultimately, Ford's announcement could produce positive benefits for both Ford and the US economy.
ReplyDeleteI would say American auto industry should aim toward emerging market such as India and China more, I'm a Vietnamese, and I think a lot Vietnamese and Chinese like American cars.
ReplyDeleteFord does need to target new emerging markets, however with this need comes a great responsibility. India for example, has a GDP per capita of just $3100, meaning that car purchases in India are most likely seldom and infrequent for the majority. In addition to the business Ford brings into India's economy, they will also need to make strong efforts to grow and develop the economy in other ways. Ideally, this would lead to an increase in consumer wealth and spending, which would in turn solidify their presence in India.
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