Ford admits that floods in Thailand caused a 2011 loss for its Asia Pacific and Africa region
By Andrew, 12 Jan, 2012. 0 Comments
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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]
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