Camacari (Brazil): Ford Motor Co will launch a small car aimed at emerging markets next year, the toughest test yet of chief executive Alan Mulally’s strategy of building “global” models that can be sold in countries around the world.
Top Ford executives, including chairman Bill Ford, were at the company’s Camacari plant in Brazil on Wednesday to showcase a concept version of the global Ka four-door, five-passenger hatchback, which will be introduced in Brazil next year.
Eventually, Ford will bring the global Ka to other emerging markets, including India and China, where more families are amassing the wealth needed to buy their first vehicle.
The Ka compact is the smallest and cheapest Ford vehicle to get a global overhaul, competing in what Ford calls the “sub-B” segment. The number 2 US automaker has long struggled to make money in this market, which is in the midst of significant growth and intensifying competition.
“If you’re going to grow, especially in the growing emerging markets arou-nd the world, you need to have this entry-level family car,” said Mr Joe Hin-richs, who leads Ford’s operations in North and South America.
Ford expects global sales of small, low-cost cars to grow 35 per cent between 2012 and 2017, outpacing the expected 12 per cent rise for the industry as a whole. Ford said 44 per cent of the market for “sub-B” cars will be in South Asia and South America.
Ford studied Maruti Suzuki, Hyundai Motor and Kia Motors and their approach to the global market for small cars, Ford chief financial officer Bob Shanks said.
Ford did not discuss the price of the global Ka but said the current Ka costs between $10,000 ('6 lakh) and $12,000 (Rs 7.2 lakh) in Brazil, compared with $17,000 (over Rs 10 lakh) to $26,000 (Rs 15 lakh) for the Fiesta. The current Ka is sold in Europe and South America.
