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

Ever since the Regera premiered in 2016, Koenigsegg has been firm about increasing its coverage around the globe. Part of the idea was to ask its employees in Angelholm to...
by - February 21, 2017
There is no harm in admitting that both the conventional and the hybrid versions of the Lexus LC 500 are real stunners when it comes to its exterior styling. Even...
by - February 21, 2017
Jaguar is placing three new Ingenium engines on the F-Pace crossover, XF saloon and XE sedan for the 2018 model year. According to Jaguar’s recent announcement, the updates will also...
by - February 21, 2017
After Volkswagen snagged Toyota’s crown as the world’s best-selling automaker, there’s no stopping the Japanese manufacturer from dominating the hybrid arena. As of January 31st , Toyota’s increasing global unit...
by - February 21, 2017
There is no denying that the performance versions of the Jaguar F-Type and the Land Rover Range Rover are definitely hot – both in terms of looks and road dynamics....
by - February 21, 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