Ford eyes 10% share in Asian market
Ford eyes 10% share in Asian market
BANGKOK (Reuter): U.S. auto giant Ford Motor Co wants to reap the benefits of Asia's rapid growth and has set a long-term goal of obtaining a 10 percent market share in the region, a Ford executive said yesterday.
"Ford has a goal of 10 percent market share across Asia. That's a long-term goal," David Snyder, president of Ford's Thailand Regional Office, told reporters.
"I can't really put a timeframe on it, but we want to get a share of the world automotive market," said Snyder. He said Ford now had between one to two percent market share in the Asian market, and about 13 percent worldwide.
Ford, the world's number two auto maker, has announced new involvement in India, Thailand and Vietnam, and plans to expand in Malaysia and South Korea.
"Indonesia is a concern at the moment...with the latest policy announced in Indonesia that there may be an advantage given to national cars," Snyder said. "If those policies stay we'll have to modify our plans in Indonesia."
In February, Indonesia announced measures including tax and tariff incentives for domestic car makers that meet stringent conditions. Indonesian officials have said the only firm that could meet the new requirements was PT Timor Putra Nasional, which is controlled by President Soeharto's youngest son Hutomo Mandala Putra.
Ford had planned to set up a complete knock-down facility in Indonesia, but it is now reassessing the plan.
Thailand is one of the countries pinpointed by Ford as a major growth area, Snyder said, and it has invested millions of dollars recently for expansion.
"This is a growing market. We expect Thailand to grow to more than one million units in the medium term, by 2000-2003," he said. Total industry volume in 1995 was about 570,000 vehicles, up from 485,000 the previous year.
Earlier this year Ford set up two truck component plant projects worth $53 million to supply a new pickup truck factory it is building in Thailand with Mazda Motor Corp, in which Ford has a 33.4 percent stake.
Snyder said the truck plant, which should be up and running in May 1998, will produce 130,000 units at first but it has the capacity to expand further.
"Our plant can be expanded to more than 200,000 units. We're studying what prospects there are for special production," he said, noting the plant will not necessarily produce only trucks but could also make passenger cars.
Ford is setting up a manufacturing facility in India about the size of the Thai plant, and it should also be on stream in mid- 1998.
A new plant will be running in Hanoi next year to give Ford a presence in Vietnam. Ford has also set up sales and manufacturing facilities in Malaysia and a sales company in South Korea.