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Old 26th January 2016, 00:20   #1
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Default Ford exiting Japan and Indonesia

http://www.reuters.com/article/us-fo...-idUSKCN0V3112

Wonder how they thought of being competitive without local manufacturing. Luckily for Ford, India has been good with almost 50% of production in the last 2 years exclusively in exports.

There is an talk of India made EcoSoport reaching this brand home market, ie USA
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Old 26th January 2016, 11:37   #2
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Default Re: Ford exiting Japan and Indonesia

Yeah, definitely a half-hearted effort from Ford.

Contrary to popular perception, the Japanese market is big, but not HUGE. In terms of car sales, about 4.5 million vehicles were sold in Japan in 2014 (India = 2.5 million). That's a long, long way off markets like USA & China.

Japanese car makers can dominate USA, but American car makers have always had a tough ride in Japan . It's a highly protected market, directly (as it was 3 decades back) or indirectly. Plus, Americans don't build the kind of cars that are popular in Japan.

In the future, we'll see many car makers exiting markets that are simply not profitable for them. Yes, they must try first, but if after years of effort, there are still no fruits, it's better to withdraw from the market and strengthen your position in countries with potential. It's certainly not necessary for every car manufacturer to have a presence in every country. Heck, closer home, I'd say Chevrolet will give India another shot or two. If things don't work out, they'll leave the market.
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Old 26th January 2016, 11:46   #3
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Default Re: Ford exiting Japan and Indonesia

I agree GTO. With the news of SAIC thinking of contract manufacturing GM models if it gets clearance from Gujrat government to get hold of GM Halol factory, it will be one shot for sure. GM has a fair portfolio of models but success is still distant.
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Old 27th January 2016, 19:18   #4
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Default Re: Ford exiting Japan and Indonesia

Do we see Chevy exiting from India in the near future, though the company has been talking about new investments yet the closure of Gujarat facility is not taken well by Industry Pundits.

Fiat also seems to be on a exit trajectory considering that their only savior in the country is MJD and not the cars produced by them.

Mitsubishi? Are they still present? Cedia recall is the only thing which is in news.

Last edited by i74js : 27th January 2016 at 19:21.
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Old 1st February 2016, 10:49   #5
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Default Re: Ford exiting Japan and Indonesia

Here's Forbes take on the exit.

Full Article

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What Ford also does not want you to know is that the company has left Japan’s import market to its European competitors. More than 80% of the more than 300,000 foreign cars brought to Japan last year carried European marques; the American share was a minuscule 4%. Home to more than 10 domestic manufacturers, Japan is a highly competitive market, but sometimes one can’t help but get the impression that Ford and its Detroit peers aren’t even trying to compete. Ford’s imported cars often have the steering wheel on the wrong side. Since 2008, Detroit’s automakers have boycotted Japanese auto shows. The boycott was only broken when Chrysler went to Fiat, and subsequently made an appearance at the Tokyo Motor Show. A little trying goes a long way: FCA’s Jeep brand is quite popular in Japan, selling more than Ford and GM combined.
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Old 1st February 2016, 11:07   #6
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Default Re: Ford exiting Japan and Indonesia

I remember Dodge trying to sell its Neon since it matched the size requirements. It was a big flop mostly due to quality. For the type of cars that sell in japan, there are innumerable choices and the domestic makers are dead serious about getting good cars on roads.

Also, not sure how Koreans are faring in japan.
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Old 1st February 2016, 16:15   #7
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Default Re: Ford exiting Japan and Indonesia

GM India seems headed the same route.

Ford has consistently been a company that tries to do things the right way. Even when the American Automobile market was looking for govt. to bail it out during the recession in the last decade, Ford was the one in the top 3 that restructured it's operations and came out better focused on consumer needs.

If you can't enter a market inspite of repeated attempts it is better to exit it.

Ford does keep on coming up with a hit or two in the India market but then lets it slip away. GM on the other hand has nothing but failures except the Curz and Beat and those too were a long while back.
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Old 24th June 2016, 06:11   #8
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Default Re: Ford exiting Japan and Indonesia

Quote:
Originally Posted by srishiva View Post
I remember Dodge trying to sell its Neon since it matched the size requirements. It was a big flop mostly due to quality. For the type of cars that sell in japan, there are innumerable choices and the domestic makers are dead serious about getting good cars on roads.

Also, not sure how Koreans are faring in japan.

I lived in Japan for 6 years. For all the years, I have only seen one Hyundai and that too driven by a Korean. Koreans have a tough time in Japan. Japanese don't buy Korean stuff. They don't sell even Samsung or LG in Japan.
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