Ford Motor Co., the second largest US automaker is focusing on Asia to boost its sales volumes, according to the company’s Asia-Pacific and Africa chief, Mr. Joe Hinrichs. To increase its production, the company in early August 2011 announced its plan to invest Rs. 4565 crore to build a second car-and-engine complex in India. This would be the company’s seventh plant in Asia.
Mr. Hinrichs recently stated in an interview that Asia was the only region in the world where the company was building new plants. Of late, international players like Ford, GM and Toyota are focusing on Asia-Pacific region and Africa to boost their sales, as they feel these regions have the buying potential owing to young population and rise in income levels. Substantiating the company’s reason to invest in these regions, Mr. Hinrichs stated that one out of every six Ford vehicles is currently sold in this region and the company expects about a third of Ford vehicles sales to come from this region by the end of the decade.
The company which has only a 3% presence in both China and India is working towards increasing its presence in these countries.