Ford calls it quits in key Asian markets

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Lacking local manufacturing operations and vehicles in key segments, Ford is cutting its losses and withdrawing from Japan and Indonesia.

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Ford is cutting its losses in Japan and Indonesia and will withdraw entirely from both markets before the end of the year. A spokesman for the OEM told Automotive World that these markets offered the business “no reasonable path to achieve sales growth or sustained profitability,” and that market dynamics prevented it from competing effectively….

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"Frankly speaking, Ford’s exit from Indonesia did come as a surprise given that there is prospect for growth in Asia and in particular, Indonesia where several OEMs have identified it as a key market of growth. Furthermore, with the establishment of Asean Economic Community (AEC), there is huge promise and potential with free movement of goods, services, investment, skilled labour and freer flow of capital. Ford also has a large manufacturing facility in Thailand, Rayong that can be leveraged with the AEC integration. In addition, first-time passenger-vehicle buyers still account for more than 77% of new-vehicle buyers in Indonesia which is very significant even in times of current market headwinds. Growth in Indonesia is for the long-haul and not for short-term. " Mohit Arora, Executive Director, J.D. Power Asia Pacific