Ford India to phase out Fusion superhatch

On the sidelines of announcing its dealership rollout pan-India, Ford India Private Limited (FIPL) has stated that it has firmed up its plans to phase out its not-so-successful car, Fusion in the medium term, without revealing any timeframe. The Fusion was launched in the Indian market in 2004 and is available in three variants and the company had promoted it as a combination of a hatchback and sports utility vehicle.



"We will discontinue the Fusion and our focus in the small car segment will be exclusively on Figo in the Indian market. The Fusion was also giving us a relatively small volume and we hope to do well with the Figo," Ford India managing director and President Michael Boneham told reporters in New Delhi. He also maintained that the phasing out is part of a product rationalisation strategy with the firm looking to focus on the compact car segment, which comprises over 70 per cent of the Indian car market that is heading towards the two million mark per year. He said the Figo would be positioned in the small-car segment, competing with cars from the Maruti Suzuki, Hyundai Motor India and Tata Motors stables. He told reporters, “After all, this segment constitutes the bulk of the market and even a 10 per cent annual growth would mean a huge addition to demand.” He did not believe that the premium hatchback segment was the place to be in, given its smaller numbers.

Meanwhile, as Ford India gears up to launch the small hatchback Figo, it has said that it will launch a new car every 12-18 months for the next few years. The Indian arm of the Detroit auto biggie affirmed that that it is better to be a volume player in the country, for which being aggressive in the small-car segment is the way forward. Ahead of its ambitious entry into the compact car segment, the company’s Indian subsidiary Ford India, on Tuesday opened 28 dealerships across 24 cities in the country, with small cities (Tier-II, III) as the main target market growth.

“What we are planning to do here is launch a new car every 12 to 18 months,” Michael Boneham, told reporters recently. Nearly 70 per cent of all cars sold in the country fall in the small car segment. “For us the majority of new launches will be in that segment across the next four to five years,” he said.

Ford boosts dealers ahead of Figo launch

Ford India, preparing for the launch next month of its new [previous generation European Fiesta based] Figo, has signed up 28 new dealers which opened their doors this week.
The new retailers take Ford’s network to 164 facilities in 97 cities across India, an increase of 30% in the past two years.

The introduction of the Figo will mark a significant shift for India’s role in the global ONE Ford strategy that is transforming how the company brings more small cars to market.

It has invested US$500m to double annual production capacity to 200,000 units at its Chennai manufacturing facility which positions it as a regional centre of excellence for small car engineering and production.

Export Figos will also be produced at the plant and the factory will also produce diesel and petrol engines for local vehicle production and export within the Asia Pacific and Africa region.

The Figo hatchback was designed and engineered to compete in India’s small car segment, which accounts for more than 70% of the new vehicle market. It uses Fiesta small car platform architecture already familiar to Indian customers as it underpins existing sedan models built and sold in India.
Ford India president and managing director Michael Boneham said: “Growing our dealership base, building strong business fundamentals and getting closer to our customers are areas of high priority as we gear up to launch our new Figo and enter this high volume segment in 2010.”

Placing dealerships in close proximity to city centres – where they are conveniently located for customers – has been a core focus area as the automaker continues to broaden its local product range.

Boneham added: “As we expand, we are making sure that our low cost of ownership message is heard by people making buying decisions.”

All the newly-inaugurated showrooms are 'Brand@Retail' dealerships built according to a global standard to improve the ownership experience and ensure a long-term association with the b;ue oval brand.

Boneham said Ford India had been working with dealers to ensure facilities met specific requirements. Staff were trained according to Ford’s global guidelines to meet the demands of increased volume selling. The automaker has tripled dealer sales people from 480 in 2009 to nearly 1,500 this year.
In the past two months, over 1,700 dealer personnel from 97 cities attended in-depth training sessions on the new model.

New dealers have opened in New Delhi, Sangrur, Haldwani and Gwalior in the north; Durgapur, Dhanbad and Guwahati in the east; Hyderabad, Chennai, Warangal, Vellore, Salem, Vijayawada and Malappuram in the south; and Bilaspur and Mehsana in the west.

There is also a new showroom in the East Delhi metro rail station – the first time Ford has displayed its products in such a location in the Asia Pacific region.

New showrooms and workshops also are now located in Jaipur, Thane, Ahmednagar, Pune, Vapi, Ahmedabad and Cochin.

Ford to Display Its Small Car This Week

Ford Motor Company will be unveiling its much-awaited ‘small car’ in this week. This will happen as soon as in two-three days.

The US car major had launched the Ford Fiesta sedan in 2005. Since then, Ford India has not had a new product launch in India, while the company has continued to upgrade its existing product line in the country.

Ford India will launch its small car, code named B517 in March 2010. This car will be launched in an attempt to secure its presence in the country. The small car, which is expected to compete with the Hyundai i20 and the Suzuki Swift, was also showcased to its dealers in Chennai recently.

This small car will be a four-door hatchback that will be powered by an indigenous diesel and petrol engine. The engine of the small car will be manufactured at its Chennai plant.

Ford India has invested around $500 million (Rs 2,400 crore) to double the current capacity by one lakh cars and 2.5 lakh engines. Recently, the company has seen an increase in primary sales (sales from company to dealers), with the Endeavour and the Ikon maintaining their leadership positions in the premium SUV segment and mid-size segment, respectively. Ford India’s existing line-up includes the Ikon, the Fiesta, the Fusion and the hulky Sports Utility Vehicle (SUV), Endeavour.

The US car major is keen to accelerate focus on emerging markets such as China and India with fuel-efficient products. Globally, consumers are seen to be moving towards fuel-efficient small cars and Ford India is currently offers cars in mid-size segments and SUV segments.