Executives at Ford know that they won’t be able to increase sales by 50% based on the US market alone, so they are turning their focus toward Asia. In China, millions of cars are purchased each year, but only the most wealthy people are able to afford foreign imports. Ford thinks that it will be able to top the 8 million car mark by 2015 if it is able to stay on the right course.
Ford will also be able to save money by producing smaller cars for the Asian market. Their roads are more congested than highways in the US, so every inch of room counts. If all goes well, approximately 33% of Ford’s sales will come by way of Asia. In the US, Ford is doing fairly well. Only one other company has managed to post a higher profit margin, but the year is not yet over.
CEO Alan Mulally spoke to members of the automotive industry about his future plans for the company at a press conference earlier this week. Although politicians are criticizing whether or not the federal auto bailout was a success, Ford employees testified that the company was doing better than ever. With the help of Asian buyers, Ford really become one of the key power players in the car industry again. GM has not done as well as Ford, and Chrysler is still sorting out the details of its acquisition. In short, Ford remains one of the only car makers that has not issued a huge recall or been purchased by a foreign entity.
