Ford Motor Company announced it will cease selling its Ford and Lincoln brands in the Japanese and Indonesian markets.
”The move is expected to take place in the second half of the year and will lead to a few hundred job cuts.
A spokesperson for Ford confirmed to The Wall Street Journal that the automaker has 52 dealerships and 292 employees in Japan and 44 dealerships and 35 employees in Indonesia.
The cited reason was a lack of a “reasonable path to profitability.
As drastic as pulling out of the market sounds, the move makes a lot of sense considering the sales numbers involved. In all of 2015, Ford and Lincoln managed just 5,000 sales in Japan.
6,000 sales Indonesia
In Indonesia, where only the Ford brand is offered, the automaker managed a little over 6,000 sales for the year.
That gave Ford market shares of 0.1 and 0.6 percent in the respective markets.American makes have never sold in huge numbers in Japan and as Ford sees it conditions will only worsen.
Demand for cars is expected to continue to fall as the population ages and more and more young people avoid buying a car. In Indonesia the reasons are different. There, Ford faces a tough challenge against brands with local production due to punitive taxes for imported vehicles.
This year, Ford will also cease car and engine production in Australia. However, the automaker isn’t exiting the Aussie market completely.
The overall retail sales of Ford Motor Company for the ASEAN region rose 3.3 percent to a record 103,975 units in last year from a year earlier.
“Ford’s record ASEAN sales were driven by record full-year performances in the Philippines, Vietnam and Cambodia, as well as full-year market share gains in Thailand amidst a challenging domestic industry that saw sales decline for the third consecutive year”
the carmaker said.
Thai Government Launches “Factory Sandbox” Scheme to Protect 3 Million Jobs
The plan will focus on plants which employ at least 500 people and will build confidence among both Thai and foreign investors at a time when supply chains in rival countries are shutting down.
BANGKOK (NNT) – Thailand’s government has launched a pilot “Factory Sandbox” program to test, vaccinate and isolate factory workers, with the aim of limiting COVID-related disruptions to Thailand’s important export-driven manufacturing sector.(more…)
The environmental case for remote working
Anyone searching for a silver lining to the pandemic should look to the clear, blue skies above them. A reduction in pollution worldwide has been an unintended benefit of the lockdowns and stay-in-place orders imposed to control the spread of COVID-19.
Thailand Approves Package to Attract Wealthy Foreigners and Professionals
Thailand’s Cabinet has approved an economic stimulus and investment promotion package aimed at attracting wealthy foreigners and highly skilled professionals...
The Role of Telemedicine Today: During and Beyond the COVID-19
Lockdowns, quarantine periods, and hospitals fast filling to the brink needed the medical community to come up with solutions fast....
Malaysia, Thailand banks to join the ASEAN Banking Integration Framework
Banking institutions from Thailand and Malaysia are invited to join the ASEAN Banking Integration Framework and indicate their interest to...
Climate Change Could Force 49 Million People to Migrate in East Asia and the Pacific
Out-migration hotspots in agricultural areas of central Thailand and Myanmar coincide with areas expected to see declines in both water...
Thailand BOI Approves Measures to Support Carbon Reduction
greenhouse gas emission as well as an enhanced scheme for electric vehicles and measures to mitigate Covid-19 impacts and support...