Eight new models will be released by Ford Motor Co. in the Southeast Asian Nations over the next five years. Ford aims to tap into the growing vehicle sales in Indonesia. Last week, PT Ford Motor Indonesia Managing Director Bagus Susanto said that Ford intends to open four more dealerships in Indonesia by the end of 2011 to have 40 in all. Ford will also add models so that its market share could increase by its current 1.9%.
Susanto said that Ford will enter new segments but he declined to reveal which models will be released. He also didn’t say how much share the company is aiming to achieve. Susanto said that setting up retail outlets is considered an investment as well. He said that Ford sales in Indonesia from January to August 2011 increased by 170% compared to the 10,681 units sold in the same period the previous year.
This is partly attributed to the demand for the Fiesta subcompact, which made up 40% of sales. This vehicle was presented in November. This Asian expansion is included in Ford CEO Alan Mulally's plan that by 2015, its annual global sales will go up by 50% to 8 million vehicles.
But Ford isn’t the first major automaker to pay attention to this region. General Motors Co. intends to spend up to $150 million to begin the production of a new model at a plant in West Java. Toyota Motor Corp. is also planning to spend 26.3 billion yen ($344 million) to put up a second plant in Indonesia.
The vehicles that Ford sells in Indonesia are actually built in Thailand. Ford has secured 15.5 billion baht ($506 million) in loans from three Thai financial institutions last July to build a new passenger car manufacturing plant.