Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Tokyo  >  Mazda Motor Corp    7261   JP3868400007

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Ford to quadruple SUV offerings in China over next year

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/22/2012 | 12:39pm CEST

By Ben Klayman

Ford Motor Co (>> Ford Motor Company), seeking to tap into China's growing appetite for brawny sport utility vehicles, will quadruple its offerings in that segment over the next year.

The U.S. automaker, a latecomer in the world's largest automotive market, will add the Kuga, the Chinese version of the Escape, and EcoSport small SUVs, and the larger Explorer to its sparse China SUV portfolio, Ford Asia chief Joe Hinrichs said on Sunday.

Ford currently sells only the Edge in China, leaving it under-represented in a category that offers higher profit margins for automakers.

"The next phase of our product portfolio growth really is the three SUVs and it's so important to China because of the SUV segmentation growth we're seeing," he told Reuters ahead of the Beijing auto show. He declined to identify when each of the SUVs will go on sale in China.

Ford, which makes Fiesta, Focus, Mondeo and other vehicles in China in a three-way tie-up with Chongqing Changan Automobile Co Ltd <000625.SZ> and Japan's Mazda Motor Corp (>> Mazda Motor Corp.), is joining a growing number of automakers pushing out SUVs to meet the rising demand for the vehicles. The rollout is part of Ford's plan to introduce 15 new vehicles into China by 2015.

Chinese consumers bought 2.1 million SUVs last year, an increase of 25 percent and representing almost 12 percent of total light vehicle sales, according to J.D. Power and LMC Automotive. That total is about half the 4.1 million SUVs sold in the United States, where such vehicles make up almost one third of the market.

Buyers and industry officials have said the desire of drivers to sit above China's crowded traffic in an expensive off-road vehicle is a strong draw in the status-conscious society, especially for younger buyers.

In addition, female SUV drivers, mostly young professionals, have been increasing steadily in China, to 19 percent last year from 14 percent in 2007, J.D. Power and LMC said.

Analysts also say the surging SUV sales indicate the Chinese market is maturing.

SUVs have a long history in China, dating back more than two decades to when Chrysler built Jeep Cherokees at a joint venture with Beijing Automotive. However, the market today is led by Japanese and South Korean automakers in the compact segment, and the German brands in the luxury market. Honda's CR-V led the way last year with overall sales of some 160,000.

Ford has invested or made commitments to spend almost $5 billion in China to date, including its announcement last week to build a $760 million plant in Hangzhou in eastern China.

The Hangzhou plant is scheduled to begin building vehicles in 2015, and is meant to help Ford close the gap with its larger rivals. Ford sold 320,658 vehicles in China last year, compared with Volkswagen AG's (>> Volkswagen AG) annual tally of 2.26 million and General Motors Co's (>> General Motors Company) 2.55 million.

RAPID EXPANSION

Ford's rapid expansion in China - it will double annual production capacity to 1.2 million vehicles in 2015 -- led the company to say this month it would realize a "small loss" in Asia in the first quarter.

Executives cited major investments in new products like the redesigned Focus small car and a new factory in Chongqing, but added Asian operations will be profitable for the full year in 2012.

Ford plans to build the small Kuga and slightly smaller EcoSport SUVs in Chongqing, Hinrichs said. The larger Explorer, which seats up to seven people, will be the first Ford vehicle exported from the United States into China.

Ford's Chinese dealers, which have been limited to selling only five vehicles before this month's rollout of the new Focus, cannot get the SUVs fast enough. At a dealership in Shanghai last Saturday, salesman Hu Jun said the reasons for consumers' growing desire for SUVs were no surprise.

"It's high and big and safe, and it's very convenient if the family wants to go out," he said.

SUVs also are the next frontier for image-conscious Chinese buyers, which will translate to healthier profit margins for automakers.

"It's more powerful, masculine and big," Shaun Rein, managing director of consulting firm China Market Research Group, said of SUVs. "People like to be in an environment that just seems big."

(Editing by Ron Popeski)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MAZDA MOTOR CORP
04/25 MAZDA MOTOR : New GT and GT Sport models spearhead updated Mazda2 range
04/25 MAZDA MOTOR : Three of a family killed in road accident
04/25 MAZDA MOTOR : Woman among three killed in road accidents
04/24 MAZDA MOTOR : Two killed in wagon, truck collision
04/24 MAZDA MOTOR : One-Millionth Mazda MX-5 Comes Home
04/22 MAZDA MOTOR : McCumbee-McAleer driver wins two races
04/21 MAZDA MOTOR : Head turns for Mazda 6
04/20 MAZDA MOTOR : Patent Issued for Upper Vehicle-Body Structure of Vehicle (USPTO 9..
04/20 MAZDA MOTOR : Patent Issued for Obstacle Detection Device for Vehicle (USPTO 961..
04/20 MAZDA MOTOR : Patent Issued for Lower Vehicle-Body Structure of Vehicle (USPTO 9..
More news
Sector news : Auto & Truck Manufacturers - NEC
08:41p Fiat Chrysler may add more self-driving supplier partners - CEO
07:15pDJEurope's Car Makers See Light at the End of the Tunnel -- 2nd Update
07:05p French stocks hit nine-month high as earnings power European shares
06:56p VOLKSWAGEN : ride service partner Gett buys Juno for $250 million - Capital
05:34p FIAT CHRYSLER AUTOMOBILES : profits beat expectations as SUV push pays off
More sector news : Auto & Truck Manufacturers - NEC
News from SeekingAlpha
04/19 MAZDA MARCH EUROPEAN CAR REGISTRATIO : -1%
04/14 Standouts from the New York auto show
04/04 Auto Sales Off To A Poor Start In March Reporting
04/03 MAZDA MARCH U.S. SALES : +4.9%
03/31 EV Company News For The Month Of March 2017
Advertisement
Financials ( JPY)
Sales 2017 3 213 095 M
EBIT 2017 -
Net income 2017 96 720 M
Debt 2017 35 316 M
Yield 2017 2,22%
P/E ratio 2017 9,76
P/E ratio 2018 7,24
EV / Sales 2017 0,31x
EV / Sales 2018 0,27x
Capitalization 946 604 M
More Financials
Chart MAZDA MOTOR CORP
Duration : Period :
Mazda Motor Corp Technical Analysis Chart | 7261 | JP3868400007 | 4-Traders
Full-screen chart
Technical analysis trends MAZDA MOTOR CORP
Short TermMid-TermLong Term
TrendsNeutralBearishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 19
Average target price 1 912  JPY
Spread / Average Target 21%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Masamichi Kogai President, CEO & Representative Director
Seita Kanai Chairman
Tetsuya Fujimoto Managing Executive Officer & Head-Finance
Yuji Harada Director & Head-Global Public Relations
Akira Marumoto Representative Director & Executive Vice President
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
MAZDA MOTOR CORP-14.41%8 498
TOYOTA MOTOR CORP-10.51%175 752
VOLKSWAGEN AG9.22%80 756
DAIMLER AG-2.86%80 446
BAYERISCHE MOTOREN WER..-1.10%62 303
HONDA MOTOR CO LTD-4.52%51 857
More Results