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Ford eyeing stake in Indian e-commerce portals

Ford Motor Company, or FMC, of the United States is planning to enter into strategic alliances, including equity partnerships, with popular Indian portals as part of the company's global e-commerce thrust.

In addition, the company is evaluating the feasibility of introducing models in the small and premium segments of the Indian auto industry as part of plans to increase presence in the country, FMC chief executive officer Jacques Nasser told visiting newspersons in Detroit.

James C Gouin, chief financial officer of Ford Consumer Connect, said, is also looking at an e-commerce thrust in India. ''Internet is a technology that will help us transform the business.''

Ford Consumer Connect is the recently set up e-technology vehicle to connect Ford to its global consumers. He said the company is looking at joining hands with leading Indian portals in line with its global strategy.

''We (Consumer Connect) plan to enter the Indian market in 2001. We have an equity stake in MSN Carpoint and we will be asking them to assist in our e-commerce foray in India. We are also open to entering into strategic alliances with Indian portals.''

Gouin, however, refused to elaborate on the company's investments programme for the country.

Over the last eight months, FMC has invested $ 100 million in B2B ventures and $ 250 million in B2C ventures internationally.

Gouin said FMC, in its progress towards becoming a seamless organisation, is networking its vendors and dealers in India with its Indian subsidiary -- Ford India Limited, or FIL.

"Our vision is to be the world's leading consumer company for automotive products and services. In India, we are looking at an increased presence. For now, we have directed all our resources towards making our latest offering Ikon popular.''

Regarding Ford's new models for India, Nasser said the company was looking at all opportunities emerging in the Indian marketplace. He hinted that the company would be addressing either the small segment or the op-end of the mid-size segment with its next offering in India.

"The options are more than what we can offer below the Ikon. We are looking at other alternatives as well.''

However, he refused to divulge further information on the specific models that are currently being studied saying, "There is a lot of thinking going on now as to what the next model should be. We are not ready to talk about the next offering yet."

"We have a facility in India (near Madras) which is capable of producing much more vehicles than it is doing now. But the focus now is on making Ikon successful. There are many opportunities as we go forward in India. It may include a smaller vehicle or may not. We might head in a different direction. We shouldn't just look at what other people are doing and emulate that. We should look at what is right for the market in the longer term,'' Nasser added.

The Indian operation has the advantage of a flexible manufacturing facility in Madras coupled with a large stable of products and brands available through the parent company -- FMC, he added.

The company, he said, is also looking at opportunities that would arise in the post-WTO era in India.

Meanwhile, Vaughn A Koshkarian, president, Ford Asia-Pacific operations, said FMC is looking at the high volume segment rather than the mid-size segment as its next product for India.

"The product is currently in the planning stage. We are looking at products from the Mazda stable.'' Ford owns a majority stake in Japanese carmaker, Mazda.

The company, he said, is also contemplating a foray into the sports utility vehicle, or SUV, and the upper mid-size segments. Furthermore, as part of its post-WTO plans, FMC is mulling the introduction of models from its Premier Automotive Group as completely built units. Premier Automotive Group includes Volvo, Lincoln, Mercury, Jaguar, Aston Martin and Land Rover.

"We are quite aware that these are not going to be volume products."

FMC expects sales in the Asia-Pacific region to overtake the North American market by the year 2008.

Koshkarian said that Asia-Pacific operations accounted for 12.5 million units in 1999, and this is likely to go up to 19.4 million units by 2008.

"As part of our Asia strategy, we are planning to strengthen the auto industry in each country and capitalise on our global resources to tailor brands to customer needs.''

Highlighting the potential of the region, he said as against the US vehicle population of 760 units per 1,000 people, India stood at a mere ten vehicles per 1,000 people and China was at 15 vehicles per 1,000 people.

FIL is planning to begin exports of the recently launched Ikon next year. The company is in the process of identifying potential markets for the Ikon.

Ford replacing oval trademark with script signature

Ford Motor Company, or FMC, is replacing its popular blue oval logo with a 'Ford Motor Company' script signature across the globe, including in India.

While the blue oval will continue to adorn Ford cars, all other brands of the FMC stable will continue to maintain their distinct identity, company spokesperson told visiting newspersons here. FMC owns Lincoln, Mercury, Aston Martin, Jaguar, Mazda, Volvo and Land Rover brands.

"As Ford is approaching its centenary (in 2003), we are looking to create a distinct corporate identity. As a first step, the company is replacing its blue logo from its world headquarters building in Detroit with the script signature next week. Over the next few months, the signature will replace the blue oval across the globe including India."

UNI

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