Ford Motor Co.
) revealed that it will expand sales network in India as part of
its major expansion plan in the emerging countries. It will
increase the number of outlets to 500 by 2015 from 230 currently
in the country.
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Last month, Ford announced plans to boost exports of its engine
production from India by shipping them for the first time to
Europe. Currently, the automaker exports 40% of its Indian-made
engines and 25% of its Indian-made cars to 35 countries.
Ford's plan to rev up Indian exports is in line with its capacity
expansion programs in the country. The company expects to
manufacture 450,000 cars and 600,000 engines in the country by
The company has already pumped in $2 billion to build
manufacturing facilities in India. However, it is still lagging
Hyundai Motor Co.
) and Maruti Suzuki India Ltd, which occupy the lion's share in
the Indian car market. Last year, Ford sold 96,270 vehicles,
while Hyundai sold 373,709 vehicles in the country.
Earlier this year, Ford unveiled its new global compact sports
utility vehicle (SUV) EcoSport at the 2012 India Auto Expo in
Delhi, which is a part of its plan to roll out eight new models
in the country by 2015. The automaker plans to invest $142
million to manufacture the SUV at its Chennai plant in south
India for the domestic and export markets.
Currently, Ford builds Figo and Fiesta models at the Chennai
plant. Last year, the automaker announced that it will invest $72
million to expand production capacity at its power train facility
in the plant in order to support its sales and exports growth.
The investment will enhance the plant's annual production
capacity from 250,000 vehicles to 330,000 vehicles.
Ford is currently pursuing a major expansion plan in the emerging
countries, including Argentina, Brazil, China, India and
Thailand. The company expects that Asia will account for 70% of
its global growth in the next decade, mostly from China and
India. It also anticipates Asian sales volumes to double and
account for a third of its global sales by 2020.
According to Joe Hinrichs, the president of Ford's Asia Pacific
and Africa region, India will be the third largest market after
U.S. and China by the end of the decade. Currently, Ford occupies
about 4% of the Indian market, which is about the same share
General Motors Co.
Toyota Motor Corp.
The Zacks #3 Rank (Hold) company posted a 39% fall in profits of
$1.20 billion or 30 cents per share in the second quarter of the
year from $1.98 billion or 49 cents in the corresponding quarter
of 2011 due to lower operating results in all the regions except
North America. However, the company's profits were higher than
the Zacks Consensus Estimate of 28 cents per share.
Revenues in the quarter dipped 6% to $33.3 billion, due to the
same factors mentioned above. However, it exceeded the Zacks
Consensus Estimate of $32.0 billion. In the first half of the
year, Ford's U.S. total market share was 15.4% in the U.S. and
8.1% in Europe.
For 2012, Ford anticipates market share in the U.S. and Europe to
be lower than 16.5% and 8.3%, respectively in 2011. It also
expects the overall pre-tax operating profit to be lower than
2011 compared with the prior guidance of tallying. Operating
margin in the Automotive segment is anticipated to be equal or
lower rather then the prior guidance of improve over 5.4% in