Ford admits that floods in Thailand caused a 2011 loss for its Asia Pacific and Africa region

Article by Christian A., on January 12, 2012

Ford Motor Co. wasn’t able to achieve its goal to make profits in all of its business units throughout the world in 2011. It reported a loss in the Asia Pacific and Africa region due to the flooding in Thailand. In a presentation at the Detroit auto show, Ford Chief Financial Officer Lewis Booth said that the Thai floods had a bigger impact than was expected by the company.

He said that in the third quarter, Ford released a guidance to say that all business units would be profitable for the full year but then the automaker doesn’t anymore believe that this is possible. CEO Alan Mulally said that by 2015, Ford global sales will go up by 50% to 8 million vehicles and that a third of its deliveries will be in Asia by 2020. Ford, which is ranked second in the U.S., has less than 3% of the Chinese market.

Michael Robinet, an analyst with auto consultant IHS Automotive in Northville, Michigan, said that this proves just how “globally interconnected” Ford is. Robinet is optimistic that the Thai disaster’s impact will be brief and that the company will recover over time. Joe Hinrichs, Ford’s chief of that region, revealed that Ford is constructing seven factories and has 50 new models and engines arriving in Asia by 2015.

He said that Ford sales increased by 7% in China in 2011, doing better than the 3% to 4% growth in total auto sales in the country. By 2013, Ford would have already opened two plants in China where Ford aims to present two sport-utility vehicle models. [source: Bloomberg]

Topics: ford, thailand

If you liked the article, share on:

Comments

Recommended

Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Earlier this month, Porsche introduced to us the 911 Turbo S Exclusive Series. The car wore a Golden Yellow Metallic paint. The same time it was launched, the company said...
by - June 26, 2017
Last month, the Lamborghini Centenario made its way to the Transformers: The Last Knight premiere where it got the attention of many. Following that event, three Lamborghini Centenario coupes landed...
by - June 26, 2017
The Holy Trinity of hypercars may not be accessible anymore after being discontinued, but that doesn’t mean we won’t see any more hypercars in the future. What we know is...
by - June 26, 2017
Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries