Fidelity bank banner Bayelsa State banner
Ford halts emerging markets vehicle plan

By News Express on 07/09/2016

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 979

Ford Motor has shelved plans to produce a new compact family car designed mainly for emerging markets such as India and China, industry sources said, reflecting disappointing sales of mainstream models in the world’s fastest growing car markets.

India and China were expected to be the main manufacturing hubs for the new B500 range, slated to begin production in 2018 and to include a premium sedan, hatchback and sport utility vehicle (SUV), two sources with direct knowledge of Ford’s plans said.
The car maker had also planned to build its new models in Brazil, Russia and Thailand, one of the sources said.
Ford’s decision, communicated to its suppliers in July, follows a similar move by General Motors (GM) to postpone the launch in India of a new $5bn family of compact vehicles.
Ford is now planning to redesign the EcoSport, Figo and Figo Aspire in India in 2020-21, according to two separate US sources familiar with Ford’s plans. Its more ambitious B500 programme, though, is on ice because of muted demand for some small and mid-sized hatchbacks and sedans in India and China, where SUVs and “crossovers” combining the hatchback and SUV have proved increasingly popular.
The cost of upgrading plants to produce the new cars would also be prohibitively high, the first source said. All of the sources declined to be named as they have not been cleared to discuss the plans publicly.
“We are constantly evaluating opportunities to better meet the needs of consumers and do not comment on speculation about future product programmes,” a Ford spokesman said.
That said, Ford has invested more than $2bn in India and plans to spend more to set up a global engineering centre in the southern city of Chennai that will help tweak products for the local market and more swiftly adapt to changing consumer trends.
The car maker is also ramping up exports, including to Europe, to maximise usage of its two plants in India.
“India is a key market for us in Asia Pacific,” said the spokesman, adding that the car maker is committed to introducing new products and technologies in the South Asian nation.
But instead of the bigger plan for the key markets of India and China, Ford will focus on updating existing models and develop and build more SUVs and crossovers, moving away from sedans and hatchbacks, the US sources said.
That would allow the company to boost profit margins.
“The global shift to crossovers makes competing in small cars a tough proposition for GM and Ford,” said Sam Fiorani, vice-president of global vehicle forecasting at US-based AutoForecast Solutions. “It makes more sense for them to refresh older products now, harness lower development costs in China in the mid-term, and move towards small crossovers over the long haul.”
Chinese buyers have flocked to SUVs and sales rose 52%in 2015 but growing competition in the small SUV segment from Chinese car makers is putting more pressure on pricing. (Reuters)

Source News Express

Posted 07/09/2016 1:14:50 PM


Share on facebook Yahoo mail icon Gmail icon Share on Google+



REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...


You may also like...
Keke operators write Okorocha, seek extension of time...

Dickson threatens to expose politicians behind militants

Rivers APC accuses PDP of dishonest interpretation of...

Stranded Dream Team to arrive Brazil hours before...

Rio Olympics: Go for gold, Saraki urges Nigerian...

Air Force engages personnel in 10km rain exercise...

African Union Condemns Assassination of Tunisian Political Leader...

Presidential Spokesman Femi Adesina bags chieftaincy title in...

Journalist, 4 others die in Osun auto crash...

Arik Air to train Presidential Air Fleet pilots...

Labour Party blasts PDP over statements on Delta...

Wealth of the world’s millionaires and billionaires grows...


Latest News TRUE CONFESSION: I receive N5,000 for facilitating each suicide bomb attack — Dwarf Charge Buhari for genocide, Rights activist tells ICC Federal Character: Senate to probe Buhari’s appointments Boko Haram kills six traders in Borno ambush FG plans to frame Atiku for herdsmen attacks, group alleges Doctor slaps nurse over patient care Gunmen assassinate Federal Poly Idah Director of Works Obi marks birthday with students •Warns against lavish celebrations Nigeria to need up to $300m for new national carrier — Document Govt not losing control of security despite challenges – Adesina Jubilation as Gov. Ugwuanyi inaugurates reconstructed historic Enugu Miliken Hill road How we improved tax collection to boost Bayelsa IGR to above N1bn – BIR Chairman


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (362,742 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (358,805 views) Shameless Genevieve Nnaji exposes breasts in public (287,184 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (235,660 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (214,924 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (212,751 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (186,815 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (168,746 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (156,435 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (153,005 views) Lagos plane crash: Journalist releases victims’ names (147,825 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (139,022 views)


Categories Advertorials (3) African Press Organisation (81) Art & Literature (52) Business & Economy (3,357) Business Verdict (45) Columnists (888) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (516) Features (615) Global Business Monitor (285) International (2,142) Interview (157) Live Commentary (28) Love Matters (127) News (37,270) Opinion (1,024) Pidgin (10) Politics (5,614) Religion (785) Sports (1,612) Stock Watch (33) AMA & Al Jazeera Global Update


CBN banner

Firstmobile banner




FRANCE vs CROATIA 4-2 Highlights & Goals 2018


APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera