[libranof1987]

Ford Motor Co. has finally turned around its operations in India after more than two decades of presence in what is currently the world’s fastest-growing major auto market. For the first time since it entered the country in 1995, Ford’s India operations posted a profit in the year ended 31 March

Ford is using India as a test bed for its so-called “Emerging Market Operating Model (EMOM)”, which essentially implies cutting costs “wherever possible” through alliances, local joint ventures, technology outsourcing, platform sharing, etc., the people said on condition of anonymity.

The results are already starting to become visible: the EMOM plan has helped Ford grow its India business from $2.1 billion in 2015-16 to $2.8 billion in 2016-17 and $3.4 billion in 2017-18.

For the first time in its history, Ford India sales scaled $1 billion during the year ended 31 March.

https://www.livemint.com/Auto/OZIyEU...riving-in.html

It remains to be seen what and how Ford does next, considering Ford USA's decision to focus on SUVs and Ford India's partnership with Mahindra.

[Surya-TJet]

This is good news indeed for existing Ford customers amidst all the rumours that were floating around suggesting a shutdown of indian operations.

Now, if they properly plan the next line of products, it should be by bringing in the Edge, doing proper value engineering by joining hands with Mahindra and undercut the Compass / Harrier brigade.

Apart from this, they also need to focus more on the premium hatch / cross over segment by bringing in the Focus / Fiesta models (again with value engineering by Mahindra) to achieve competitive pricing and gain further traction. And, they should ensure their USP (Solid Build, Fun to Drive) is not lost in this process.

They should most importantly utilize Mahindra's expertise in speed of new product development while ensuring they don't commit Mahindra's mistakes of launching products with niggles.

Also, they should steer clear of making any announcements of platform sharing - As that is a sure fire way of killing a product before launch - The indian' mentality that shared platform is bad cannot be changed - Hope they change their strategy and gear up for a proper success story.

[dpkbehera]

This is definitely a boost for Ford India. I have been driving a Ford Ecosport for the last 3 years. It has been a great experience so far. It would be nice if Ford launches Escape/Edge which has the following i.e. larger cabin, 4WD , more power and better low end torque. These features have been on the wish list of Ford Ecosport owners.

[arunphilip]

Ford’s global chief executive, Jim Hackett, and promoter Bill Ford have approved a so-called “single-window clearance” for India at its Asia Pacific Approval Authority in Singapore.

This means the local operations won’t have to seek a nod from Detroit on any of the strategic decisions it wants to take—a move dynamically opposite of the Dearborn-based company’s “One Ford” strategy originally conceived by its famed chief executive, Alan Mulally.

That's quite an interesting change.

When I heard about the One Ford strategy, I was excited. My mind was filled with visions of Euro-spec Fiestas landing on our shores. With a 1.6 Ti-VCT engine! Whee!!

Sadly, One Ford went in quite the opposite direction in the real world. Emerging market offerings like the EcoSport and Figo (Ka) were taken to Europe and the US, where they were savaged by the automotive media there, despite being export versions with better kit and build.

Ford India’s decision to arrive at an agreement with Mahindra for the latter to develop petrol engines is an indication of its restructuring of operations in emerging markets, especially in India, which will help trim development cost of vehicles to a bare minimum.

This is a little concerning. Mahindra doesn't have any worthy petrol engines in their arsenal, do they?

[NaXal]

I can feel the genuine urge for customer satisfaction in their entire operation.

Starting from sales to after sales, every connected individual can be seen working very hard to full fill their advertisement promise "family wali feeling".

I am not saying other well established manufacturers aren't doing this but watching a company working hard to meet their promise feels really good. First hand experience is a huge confidence booster when it comes to recommending Ford to someone else.

My cousin from my native (Jalpaiguri, a small town in Northern Bengal) is super impressed with my Aspire TDCi and Ford service experience. He is a typical Indian trusting Maruti with his 3 car purchases. But this time around, he is serious on replacing his present Wagon R with Freestyle. This is even without me suggesting anything.

[nikipedia87]

Originally Posted by arunphilip

This is a little concerning. Mahindra doesn't have any worthy petrol engines in their arsenal, do they?

This article speaks more in detail about the petrol engine being developed by Mahindra, which will apparently find its way first on the Marazzo.

https://www.cardekho.com/india-car-n...2020-22614.htm

[arunphilip]

Originally Posted by NaXal

My cousin from my native (Jalpaiguri, a small town in Northern Bengal) ... is serious on replacing his present Wagon R with Freestyle.

Ford leadership will be jumping with joy to hear this It's taken them something like a decade of effort to shed their image, but it seems to be slowly working, and percolating through India, particularly outside the cities.

Originally Posted by nikipedia87

This article speaks more in detail about the petrol engine being developed by Mahindra, which will apparently find its way first on the Marazzo.

Thank you, that's very useful. So Mahindra/SsangYong are developing that petrol engine, which will also be shared with Ford.

I still will keep my fingers crossed. Even getting a simple NA petrol engine seems to be a tricky job, seeing as how Ford went through multiple iterations of their 1.2 and 1.5 petrol engines before finally coming up with the current Dragon series which is acceptable-to-good for the segments it is used in (in relation to the competition that has their own good engines).

So Mahindra/SsangYong might face similar challenges in delivering a good petrol at the very first attempt. I hope I'm proven wrong, because, otherwise Ford will squander yet another opportunity with a sub-par engine, and end up thinking of revising this partnership.

With the trend gradually moving away from diesels, all manufacturers need a capable set of petrol engines in their repertoire.

[GTO]

Good news, and about time! 2 decades of losses means the American headquarters showed a lot of patience, certainly a lot more than GM which abruptly exited what is now a no.4 car market worldwide (and will be no.3 in a couple of years).

However, Livemint has missed the primary reason for profitability = EXPORTS. From zero to negligible exports till a couple of years back, Ford is now exporting more cars than it sells in India. September numbers are:

Total = 19,988 vehicles (compared to 16,525 vehicles in September 2017).
Domestic = 8,239 (8,769 units in the same month last year).
Exports = 11,739 (compared to 7,756 units in September 2017).

It's obvious where the sales & $$$ are coming from. Not India, but exports. Still, it's good news as profitability means more investment & better products.

Profitability also means a higher asking price when Mahindra comes to buy some equity .

[anjan_c2007]

Thats a booster for Ford in India and also for its customers, though most Fords are exported. Ford has stuck to its European line-up for manufacturing in India despite facing the market odds. Ford Ecosport is also currently marketed in the US. The Mustang is also American. They have stayed off cheap plasticky cars unlike what GM did by ushering in the Chinese SAIL line-up and branding them as Chevrolets. The image of brand Chevrolet has been besmirched alas ! The Cruze was though available in the US market.

The MNC car makers have no attachment to a particular country and its the profits that keep them hanging on. Sustained losses for years together, readies most of them with an exit plan.

Ford has exited from these markets very recently viz. Australia ( after a 90 year innings !), Japan and Indonesia due to lack of demand for their products there.

The links:

Austrailia

https://www.abc.net.au/news/2016-10-...-years/7909836

Japan and Indonesia

https://www.reuters.com/article/us-f...-idUSKCN0V3112

There was always hence an apprehension that Ford could exit India, should the mounting losses continue on and on. And such exits are quite troublesome for the customers. We have had Daewoo dissappearing due to unforeseen reasons. GM 's exit from India was also sudden and unprecedented. Their dumping the Opel brand about a decade and a half back was also a shock for the buyers.

If the Ford India cash registers ring, the Indian customer will have a good going. The very fact that Ford is able to sustain its export market with Indian made cars, speaks volumes about the quality of the products rolling out of the assembly lines from Maraimalai Nagar (T.N.) and Sanand (Gujarat).

[volkman10]

Ford aims for bigger slice of competitive India market including platform sharing.

EMOM is the North Star for the turnaround at Ford in India

Under an initiative called the Emerging Market Operating Model (EMOM), Ford cut manufacturing costs by 40 percent and is developing more vehicles locally as it moves away from its "One Ford" plan, which restricted its ability to be cost-competitive and agile in a fast-growing market - a recipe for the success it is reaping now.

They are still a long way away till they can call India a successful market

As part of EMOM, Ford is deepening ties with Mahindra to build passenger vehicles in India, which could also involve sales in other emerging markets

Ford's new strategy gives greater autonomy to the local management team, and will contribute to a global restructuring plan to save $11 billion over the next few years by cutting costs, forming partnerships and investing in new technologies.

Ford and Mahindra are co-developing two platforms and the first car on it is likely be launched in 2020.

We're certainly concentrating on India right now, but there's all kinds of opportunity beyond India together should we both want to explore that

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