Ford launch first global C-platform car Focus

Its pretax profit grows 2.8 times to $7.15 bn in 2010, thanks to booming sales in North America


Booming sales in North America produce sales of $129 bn, up by 10.9%, pretax profit of $7.15 bn, up by 2.8 times

 Ford's 2010 sales volume were up by 9.2% over the previous year to 5.313 million units. Noteworthy growth was recorded as 25.2% in North America and 38.7% in Asia-Pacific and Africa. Ford posted revenues of 129 billion dollars, up by 10.9% over the previous year. This was underpinned by sales in North America at 64.4 billion dollars, up by 29.6%

 Ford posted a pretax profit of 7.15 billion dollars, up by 2.8 times (it was positive 2.6 billion dollars in 2009 owing to a special profit of 4.71 billion dollars from debt reduction). By region, pretax profits all turned to black in North America, Europe and Asia-Pacific from the red in 2009. The surplus of pretax profit in North America stood out in 5.41 billion dollars.

 From the first quarter to the third quarter, Ford posted a pretax profit of around two billion dollars every quarter, while the surplus was reduced to 0.28 billion dollars in the fourth quarter. This drop in pretax profit was attributable to declining inventory in North America and the negative results of the European division due to a decrease in sales, and costs allocated to debt reduction.

Ford's sales volume by region (wholesale)

(Units in 1000)
  Ford and Lincoln brands PAG Grand total
North America South America Europe Asia-Pacific
and Africa
2005 3,410 335 1,753 505 764 6,767
2006 3,051 381 1,846 589 730 6,597
2007 2,890 436 1,918 535 774 6,553
2008 2,329 435 1,820 464 359 5,407
2009 1,927 443 1,568 604 324 4,866
2010 2,413 489 1,573 838 - 5,313
Source:Ford 2010 Fourth Quarter and Full Year Earnings Review and 2011 Outlook (2011/1/28)
NOTES 1. Wholesale volume includes vehicles produced by Ford (including those supplied under OEM deals), and production volume of non-consolidated affiliate companies under local brands.
2. The data include sales volume of the Mercury brand vehicles, of which production was discontinued in October 2010.
3. Sales volume in North America before 2008 includes Mazda6 produced at Automotive Alliance International, but it is not included in the data after 2009.
4. PAG data after 2008 include only Volvo brand vehicles.
5. Sales volume in Asia-Pacific and Africa before 2008 includes sales volume of Ford brand vehicles by non-consolidated affiliates in China. Data after 2009 include Ford brand and Jiangling brand vehicles sold by these affiliates.
6. Volvo's 2010 sales volume was 211 K units. Total sales volume of Ford and Volvo is 5.524 million units.

Ford: Sales and pretax profit by region and division

  Sales (Dollars in billions) Pretax profit (Dollars in millions)
2009 2010 2009 2010
North America 49.7 64.4 (639) 5,409
South America 7.0 9.9 765 1,010
Europe 28.3 29.5 (144) 182
Asia-Pacific and others 5.6 7.4 (86) 189
Volvo 12.4 - (662) -
Other automotive divisions     (1,091) (1,493)
Special items   8.1 2,642 (1,151)
Total of automotive sections 103.9 119.3 785 4,146
Financial section 12.4 9.7 1,814 3,003
Ford Grand Total 116.3 129.0 2,599 7,149
Source:Ford 2010 Fourth Quarter and Full Year Earnings Review and 2011 Outlook (2011/1/28)
NOTES 1. The special item in the 2010 sales is sales of Volvo which will be sold to Geely.
2. The special items in the 2010 pretax profit are debt reduction costs of 853 million dollars, personnel cut costs of 164 million dollars, costs for discontinuing Mercury of 339 million dollars and Volvo's operating profit of 179 million dollars.
3. The special item of 2009 pretax profit includes a special profit of 4.71 billion dollars from debt reduction.
Quarterly business results
  2009 2010
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
(Dollars in billions)
North America 10.0 10.7 13.4 15.6 14.1 16.9 16.2 17.2
South America 1.4 1.8 2.1 2.6 2.0 2.6 2.5 2.8
Europe 5.8 7.0 7.3 8.2 7.6 7.5 6.2 8.1
Asia-Pacific and others 1.2 1.2 1.5 1.7 1.6 1.8 1.8 2.2
Volvo 2.6 2.9 3.0 3.9

Other automotive sections

Special items

3.5 3.7 0.9 -
Total of automotive section 21.0 23.6 27.3 32.0 28.9 32.6 27.6 30.3
Financial section 3.4 3.2 3.0 2.8 2.7 2.5 2.3 2.2
Ford grand total 24.4 26.8 30.3 34.8 31.6 35.1 29.9 32.5
Pretax profit
(Dollars in millions)
North America (665) (899) 314 611 1,253 1,898 1,588 670
South America 63 86 247 369 203 285 241 281
Europe (585) 57 131 253 107 322 (196) (51)
Asia-Pacific and others (97) (27) 22 16 23 113 30 23
Volvo (249) (237) (136) (40) - - - -
Other automotive sections (430) (129) (237) (295) (391) (551) (369) (182)
Special items 453 2,795 101 (707) 125 (95) (168) (1,013)
Total of automotive sections (1,510) 1,646 442 207 1,320 1,972 1,126 (272)
Financial division (152) 595 670 701 815 875 761 552
Ford grand total (1,662) 2,241 1,112 908 2,135 2,847 1,887 280


2011 Plan to advance improvement of business performance for auto division's operating margin higher than 6.1%

 Ford achieved business targets as set in the beginning of 2010, with the exception of its market share in Europe, which was aimed to be maintained at previous levels. Specifically, the share in the US expanded by 1.1 points to 16.4%; thereby, the auto division's operating-related cash flow turned to positive 4.4 billion dollars.

 Ford expects the US market to expand by more than 10% from 13 million to 13.5 million units in 2011 (11.8 million units in 2010). By contrast, Ford sees that the European market, which it has entered, will slightly decrease or stay unchanged at 14.5 million to 15.5 million-unit scale (15.3 million-unit scale last year).

 In 2011, Ford will commit to the recovery of its business performance, aiming for the automotive sector's operating margin, as a new target, at 2010 level (6.1%) or higher.

Datum for the plan

  2010 plans (initial) 2010 results 2011 plans
US Market (Note 1) 11.5 - 12.5 Mils. 11.8 Mils. 13.0 - 13.5 Mils.
19 European markets (Note 1) 13.5 - 14.5 Mils. 15.3 Mils. 14.5 - 15.5 Mils.


2010 results and 2011 plans for key management targets

  2010 plans (initial) 2010 results 2011 plans
US market share Similar to or improved
from the 2009 level
(up by 1.1 point)
Similar to or improved
from the 2010 level
EU market share Similar to the 2009 level 8.4%
(down by 0.7 point)
Similar to or improved
from the 2010 level
Company-wide pretax profits Up Up by $4.6 bn Up
Automotive sector's fixed costs Slightly up Up by $1.2 bn Up
Automotive sector's
operating margin (Note 2)
- 6.1% Similar to or improved
from the 2010 level
Automotive sector's
Operating-Related Cash Flow (Note 3)
Turn to positive Surplus of $4.4 bn Up
Capital investment $4.5 bn - $5 bn $3.9 bn $5.0 bn - $5.5 bn
Source:Ford 2010 Fourth Quarter and Full Year Earnings Reviews and 2011 Outlook (2011.1.28)
NOTES 1. The US market includes medium to heavy duty commercial vehicles (on which Ford's US market share is based). Nineteen European markets are the markets where Ford has its presence.
2. Operating margin of automotive sector = (its pretax profit - its other pretax profits - special items) / (its sales - special items)
3. Operating-related Cash Flow of the automotive sector is equivalent to free cash flow, which is calculated by deducing capital investment from cash flow from operations.


Ford launches Global C-platform models including EV

 Ford launched in March 2011 the Focus, which uses the Global C-platform. This platform has been employed according to the One Ford Strategy. Ford sets a target for selling the 850 K Focuses annually in about 120 countries. Ford will develop ten models based on this Global C-platform, aiming to sell a total of two million units per year by 2012.

 Ford focuses the Global C-platform-based models such as the Focus and the C-Max on the electric-driven vehicles--EVs and HEVs--under its global electrification strategy.

 Models developed outside the US and Europe will be introduced all over the world. The Ranger, a compact pickup truck developed in Australia, will be launched worldwide as a global strategic model. In Brazil, the small SUV EcoSport will be developed on the same B-Platform as used for the Fiesta. This SUV will be also exported to all the countries of the world. Ford will develop five models based on this B-Platform, targeting annual 1.6 million sales from these model vehicles by 2014.

Models based on the Global C-platform

Model name Release
Focus March 2011 The Focus is a compact car. It will be released in three models of 4-door sedan, 5-door hatchback and wagon. The Focus will be produced in five countries of the US, Germany, Russia, China and Thailand by using 80% common parts.
Focus EV Latter half
of 2011
The Focus EV is an EV version Focus. It will be the first electric passenger car for Ford.
C-Max 2012 The C-Max is a seven-seat minivan. It is the first time in four years for Ford to launch a minivan in the US. In Europe, the five-seat C-Max is already launched. There are plans to launch the HEV model C-Max Hybrid and the PHEV model C-Max Energi from 2013.
Escape/Kuga successor 2012 Ford is going to launch the successor model of the small SUV Escape and the small SUV Kuga, which has been sold in the US and Europe, respectively. The model name will be announced. The concept car Vertreck was unveiled at the 2011 Detroit Motor Show.
Next generation HEV 2012 This is a next generation hybrid vehicle based on the Global C-platform
New Transit Connect TBD The new Transit Connect is the next generation compact LCV model.
Lincoln Compact Car TBD This is a Focus-based compact car under the Lincoln brand. It will be launched by the 2013 model year.
Lincoln SUV TBD The Lincoln SUV is a Lincoln brand SUV based on the successor model of the Escape and the Kuga.
Ford Coupe TBD The Ford Coupe is a three-door coupe, which will be launched from the Ford Brand.

Source:Ford News Release 2010/3/2, 6/11, 2011/3/14, Automotive News 2010/3/2, 6/11, 8/2, 12/8, 12/20, 2011/3/14

Other models to be launched
Model name Release
Lincoln MKZ Hybrid 2011MY The Lincoln MKZ is an entry level medium sedan MKZ hybrid model under the Lincoln brand. It achieves EPA fuel economy of 41 mpg for city driving. This is a sister model of the Ford Fusion Hybrid.
Explorer 2012MY The Explorer is an SUV. Its body structure will be changed from the body-on-frame to a monocoque.
Fusion/Lincoln MKZ 2013MY This 2013 model is the next generation of the medium sedan Fusion and its sister Lincoln MKZ. This may be downsized from the current models by using the Global C-platform.
Ranger November
The Ranger is a compact pickup developed in Australia as a global strategic vehicle under the One Ford Strategy. It will not be launched in North America.
Figo March 2010 The Figo is a sub-compact sedan, which is produced at the Chennai Plant in India (launched in March 2010). The Figo is based on the Fiesta of two generations earlier. The Figo is exported to South Africa and Nepal. It will be also exported to 48 more countries including Mexico, as well as Middle Eastern, North African and Caribbean countries starting in April 2011 and over the next few years.
EcoSport To be
by 2014
The EcoSport is a small SUV, which is being developed in the Camacari R&D Center in Brazil. There are plans to launch it not only in Brazil but also in other countries in the world. Ford is employing the same platform for the EcoSport as used in the B-segment Fiesta which was developed in Europe. It also plans to develop five other models using this platform, targeting annual sales of 1.6 million from these model vehicles by 2014.

Source:Ford News Release 2010/7/26, 2011/3/23, Ford "2011 MKZ Overview", Automotive News 2010/8/2


Strategies for emerging countries: more aggressive investment in South America, China, India and Thailand to develop and produce global strategic vehicles

 In Brazil, Ford will invest 2.4 billion dollars by 2015 to locally develop the small SUV EcoSport, which will be exported to all the countries of the world. Ford will also spend 250 million dollars to update the facilities of the Argentine Plant to build new models.

 Ford plans to introduce 15 models in China by 2015, including the global strategic car Focus. It will spend 490 million dollars to build the second plant in Chongqing, which will start production of the Focus starting in 2012.

 In India, Ford invested 500 million dollars in the Chennai Plant to increase the production capacity to 200 K units. Ford plans to produce and export the subcompact sedan Figo to 48 countries in the world. The Chennai Plant will also produce the Fiesta. There are plans to introduce eight global models in four to five years in India. The Fiesta will be the first model of them.

 To produce the Focus in Thailand, Ford is building a passenger car plant by investing 450 million dollars on its own. It also invested a total of 850 million dollars in Auto Alliance Thailand, a joint venture with Mazda, to produce the Fiesta and the Ranger. Ford will make Thailand the export center of the Asia-Pacific region.

South America

Brazil Ford announced in April 2010 an increased investment in the Brazilian market from 2.2 billion to 2.4 billion dollars from 2011 to 2015. The recent investment will be allocated to development of small SUV EcoSport at the Camacari Development Center in the north eastern part of Brazil. It will be produced for both Brazilian and export markets.
In addition, Ford will make an investment to increase productivity and update facilities of the Camacari Plant which produces the Fiesta and other models, and the Troller Plant which produces pickup trucks.
Argentina Ford will invest a total of 250 million dollars in the Pacheco Plant in Argentina from 2010 to 2012. The plant is planned to produce a new model for the South American market.
Models to be introduced Ford has launched the global strategic Fiesta in September 2010.
The B-segment SUV EcoSport will be developed in Brazil and be exported worldwide. Ford attempts to penetrate the small SUV sector in the South American market with this model.

Source:Ford News Release2009/9/25, 2010/4/7, 8, 9/25


Chongqing Plant Changan Ford Mazda (CFMA), a joint venture of Ford, will invest 490 million dollars to build a second plant in Chongqing. The plant has an initial production capacity of 150 K units. There are plans to produce the Focus starting in 2012.
Chongqing 2nd
engine plant
CFMA and the Chongqing-city government signed the memorandum with respect to building the Chongqing second engine plant in September 2010. The plant will have an annual production of 400 K engines, and the total production capacity of the Chongqing engine plant will be 750 K units, including the existing first engine plant. Investment will aggregate to 500 million dollars, all of which will be at CFMA's expense. The construction will start in 2011 and production will start in 2013.
Dealer network Ford strengthened the dealer network by adding one hundred dealers in 2010. The total dealership network is 340 dealers in China as of the end of 2010.
Models to be
Ford launched the global strategic model Fiesta in March 2009. It was the first four-door sedan version introduced in the world from China. It is produced at the Nanjing Plant of CFMA, a joint venture in China.
The compact sedan Focus will be the first model of 15 models to be newly launched.
Ford will produce and introduce the next generation of small SUV Kuga in China

Source: Ford News Release 2009/3/6, 9/25, 2011/4/15
NOTE: It was reported that Changan Ford Mazda would split and Ford and Mazda would establish a joint venture with Changan Automobile, respectively (May 2010). Changan Ford will produce vehicles at the Chongqing Plant, and Mazda at the Nanjing Plant. The reorganization will be complete by 2012.


Figo The Figo is a subcompact sedan (launched in March 2010), which is produced at the Chennai Plant in India. It is based on the Fiesta of two generations earlier. The model is exported to South Africa and Nepal. Export destinations will be increased to 48 countries over a few years from April 2011, including Mexico, the Middle East, North Africa and Caribbean countries.
New Fiesta The global strategic model Fiesta will be introduced in the Indian market as a high-end sedan in the latter half of 2011. This is the first model of eight global models to be introduced over the next four to five years.
Chennai Plant Ford invested 500 million dollars in the Chennai Plant in India to double the annual production capacity to 200 K vehicles for the Figo which was launched in 2010. The production capacity of engines was also expanded to 250 K per year. Ford will make the plant as the key plant for the Asia-Pacific and African regions. From 2011, the plant will start production of the new Fiesta.

Source: Ford India Newsroom 2011/3/9, 4/7


car plant
Ford announced in June 2010 to spend 450 million dollars on its own to build a passenger car plant in Thailand. Ford will produce the new Focus from 2012, planning to export 85% of the production. It plans to procure parts amounting to 800 million dollars per year from local suppliers in Thailand.
AAT 2nd Plant Ford and Mazda invested 500 million dollars in their joint venture Auto Alliance Thailand (AAT) to build a new passenger car plant. Ford has produced the Fiesta since September 2010. The Fiesta is sold in Thailand and exported to ASEAN countries.
AAT pickup
truck plant
Ford announced in August 2010 that Ford and Mazda invested 350 million dollars in the pickup truck plant of AAT to strengthen production facilities to prepare for production of the next generation pickup trucks. Ford plans to produce the new Ranger from the middle of 2011.

Source:Ford News Release2010/6/24, 7/6, 8/26


Ford to invest a total of 1.55 billion dollars in Michigan, Kansas and Louisville plants

 Ford also makes investments in the US under "Ford's Road Ahead". Ford spent 550 million dollars in the Michigan assembly plant to establish the production system, which is capable of manufacturing four different powertrains for gasoline vehicles, EVs, HEVs and PHEVs. In addition, it will invest 400 million and 600 million dollars in the Kansas and the Louisville plants, respectively, to update their facilities.


Michigan Ford invested 550 million dollars in the Michigan Assembly Plant to refurbish its facilities. The plant has became the world's first plant (according to Ford), which is able to produce four different powertrains for gasoline engine vehicles, EVs, HEVs and PHEVs. The plant began to produce the new Focus in March 2011. The plant will produce the Focus EV in the latter half of this year, and C-Max Hybrid and C-Max Energi PHEV in 2012.
Kansas Ford announced in January 2011 to invest 400 million dollars in the Kansas City Plant to update the facilities to produce new model vehicles. The production of small SUV Escape was transferred to the Louisville Plant, while the Kansas City Plant continues to produce the F-150.
Louisville Ford will invest 600 million dollars in the Louisville assembly plant to update the facilities. This investment will enable Ford to establish a flexible production system to produce at most six different models at the same period. The plant will restart operations in the latter half of 2011. It will produce the next generation Escape.

Source: Ford News Release2010/12/9, 2011/1/18, 3/11


Ford slips out of the largest shareholder of Mazda and sells Volvo to Geely

 Ford has sold 7.5% of its 11% stake in Mazda in November 2010. While Ford used to be the largest shareholder of Mazda, it now has a 3.5% stake and becomes the fourth largest shareholder. Ford and Mazda said that they would continue the current partnership.

 In addition, Ford-owned Volvo was sold in August 2010 for 1.8 billion dollars to Zhejiang Geely Group Holding, a wholly private auto manufacturer in China.

Ford sells Mazda share and slips out of the first to the fourth largest shareholder

 Ford reduced its stake in Mazda from 11% to 3.5% by selling its Mazda stocks through the stock markets in November 2010. Ford slipped out of the largest to the fourth largest shareholder. To grow in emerging markets, Ford will increase flexibility in business. Ford said that it would continue the current partnership and technical alliance at the joint ventures with Mazda. According to news reports, the sale of stocks was about 30 billion yen.
 The background of the sale was that Ford attempted improving its financial conditions. It was pointed out that there were discrepancies from Mazda in directions of strategies for emerging countries and green vehicles.

Source: Ford News Release 2011/6/24, 7/6, 8/2
Note: Ford became the largest shareholder by taking a 25% stake in Mazda in 1979. In 1996, Ford increased the stake to 33.4%. After that, Ford reduced the stake to 13.8% in 2008 to improve its balance sheet (in 2009, as Mazda increased its stake, Ford's stake was down to 11.0%).

Ford sells Volvo to Geely for 1.8 billion dollars

 Ford completed the sale of Volvo to Zhejiang Geely Holding Group in China in August 2010 for 1.8 billion dollars. According to the One Ford Strategy, Ford will concentrate its operation resources on the Ford brand.

Source: Ford Press Release 2010/8/2 and Zhejiang Geely Holding Group Press Release 2010/8/2

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