Ford: sales goal for 2015 projected to be eight-million vehicles
Increasing sales in emerging countries and launching fuel-efficient small cars
2012/06/04
- Summary
- Mid-Decade Outlook: Asian markets account for 30% in sales in 2020 with small vehicles accounting for 55%
- Emerging markets: Enhancing production capacities in China, India, Thailand and Brazil
- US: A new labor agreement between Ford and UAW will hire 12,000 additional workers by 2015
- New model launch: Launching the new Escape and the new Fusion/Lincoln MKZ in North America in 2012
- EcoBoost engines: Supplying 400,000 EcoBoost-powered vehicles in 2012, producing 1.5 million EcoBoost engines in 2013
- Vehicle sales: Global sales in first quarter 2012 decline by 3.2 percent to 1,358,000 vehicles owing to slow sales in Europe and Asia
- Business results: Pre-tax profit in first quarter 2012 declines by 26.6 percent to US$ 2.04 billion due to deficits in Europe and Asia
Summary
In its mid-term business plan "Mid-Decade Outlook" running through 2015 and published in June 2011, Ford expects its annual worldwide sales to increase by approximately 50 percent from the result in 2010 to 8 million vehicles in 2015. Most of the increase will come from sales expansion in emerging countries and increased sales of highly fuel-efficient, small cars. The mid-term business plan is expected to bring Ford to a major turning point from the time of business reconstruction to the time of business expansion.
Ford has been quite active in the growth markets in Asian emerging countries. In China, in particular, a second plant in Chongqing began operating in February 2012 after which Ford's production capacity in China at the new and existing plants combined rose to 600,000 vehicles. Ford has plans to build a third plant in Chongqing and a new plant in Hangzhou by 2015 after which Ford's capacity will total 1.2 million vehicles.
Ford reached an agreement with the United Auto Workers (UAW) in the US regarding a four-year labor agreement. Ford will hire more workers while increasing the ratio of lower hourly wage workers. Ford will also make additional investments to increase production in the plants in the US where the company is enjoying brisk sales.
With regard to improving fuel efficiency, Ford will increase vehicles powered by EcoBoost, a direct injection turbocharged gasoline engine of low fuel consumption. Their sales will triple year-on-year to 400,000 units in 2012 and Ford plans to produce 1.5 million of that engine in 2013.
Ford's worldwide vehicle sales in 2011 increased 3.1 percent over the previous year to 5,695,000 units thanks to sales increases in North America and Asia. The revenues also increased 5.7 percent along with 21.4 percent increase in pre-tax profit year-on-year. However, Ford's vehicle sales in the first quarter of 2012 declined 3.2 percent from the same period a year earlier to 1,358,000 units along with declines in revenues and pre-tax profit. The vehicle sales and performance increased in North America but the overall decline was inevitable because of the significant deficit in Europe suffering from a shrinking market after a borrowing binge.
Related reports:
Ford of Europe (Mar. 2012), Detroit Auto Show: US OEMs (Feb. 2012)
New regulations on fuel economy in US (2) (Nov. 2011), Ford in China (1) (Nov. 2011), (2) (Nov. 2011)
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