Ford unveils Indian-built Figo, foresees return to profitability
Filed under: Company News, Technology, Ford Motor Co.
Ford Motor Co. (F) is on a roll. The lone U.S. car company not to have taken a government bailout, Ford said Wednesday it foresees a return to profitability within two years, as it unveiled an inexpensive compact car to be made in India. (Autoblog has a gallery of the new car here.)The Figo, which apparently is Italian slang for "cool," will go on sale in India beginning early next year, Ford officials said during a press conference in Delhi. There are also plans to export the four-door hatchback to other nations in Asia. Though Ford didn't disclose retail prices, it is expected the Figo will sell for about $6,000 to $8,000.
At that price, the Figo will compete against other compact cars, including pricier versions of the Tata Nano, a tiny Indian-made vehicle from Tata Motors (TTM) that went on sale in July. "We're confident that the new Ford Figo will be extremely attractive to Indian car buyers," said Ford India President Michael Boneham.
The new car will be a game-changer, Boneham said. "It will give us muscle in the heart of the Indian market."
At the press event, Ford CEO Alan Mulally said he expected that by 2029, a third of sales worldwide will come from Asia, with the other two-thirds split evenly between the Americas, and Russia and Europe.
The plant where the Figo will be manufactured, in the southern city of Chennai, is part of a $500 million investment announced last year to increase production of vehicles and engines in India with an eye toward exporting those products to other Asian countries. Ford has been doing business in India since 1995. It has only about 2 percent of the Asian car market.
Ford executives are expected to make an announcement later this week about the automaker's plans for the China market, which may include the opening of a third assembly plant. Ford now builds some 450,000 cars a year in the Communist nation.
Ford expects these efforts will pay off in increased sales and more revenue. Mulally affirmed forecasts of a return to profitability for the car maker by 2011. "On profitability, the guidance we have given overall is to turn profitable by 2011," said Mulally, as reported by Dow Jones Newswires.
Further, Mulally said he expected U.S. vehicle sales to increase during the next two years as consumers take advantage of incentives and the nation's economy recovers from recession. Vehicle sales have already picked up thanks to stimulus packages, he said. Ford has about 15 percent of the U.S. market.
Sales may fluctuate for a short time, but will regain upward momentum as the economy starts to expand, Mulally said. He predicted annual U.S. sales volumes will reach 14.5 million by 2012. U.S. sales last year totaled 13.15 million.
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Reader Comments (Page 1 of 1)
9-23-2009 @ 2:39PM
ann watters said...
These cars need to be sold at that price here in this country.
When will we have an inexpensive excellent car to buy here. The prices of cars here in this country are ridiculous and the price to repair them is worse.
Reply
9-23-2009 @ 10:21PM
bin said...
THIS COUNTRY IS ABOUT DONE WITH OBAMA IN THERE ,SO WHO CARES ANY MORE ..... WHEN IRAN BUILDS THERE NUKES WHICH THEY ARE ABOUT DONE AMERICA WILL BENDING OVER, LUCKY IF THEY HAVE BIKECYCLES TO RIDE ...
9-30-2009 @ 12:31AM
miles from detroit said...
Very well said. Currently I own a 1999 Toyota Camry with 455,000 and it runs just as well as the first day I drove it off the lot. Although I have made many repairs, I stay on top of it all the time in order to keep it tip top so I do not have to pay these outrageous prices.
9-23-2009 @ 3:47PM
eddie said...
Just because its inexpensive doesnt mean its excellent
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9-23-2009 @ 3:59PM
sgentilejr said...
You get what you pay for. Many cheap vehicles made their way to the USA over the decades and all of those cheap made like garbage vehicles soon ended up in the garbage where they belong. Does YUGO ring a bell?
Reply
9-23-2009 @ 4:07PM
Kim said...
Painting it bug green is a good idea. That way, when you have to scrape it off your windshield and bumper you won't know what you hit.
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9-23-2009 @ 4:13PM
Kim said...
WHAT'S THE LAST THING THAT GOES THROUGH THE MIND OF A FIGO OWNER WHEN HE/SHE GETS INTO AN ACCIDENT? --------------- THEIR A$$ HOLE.....
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9-23-2009 @ 5:53PM
Limoman said...
It ALL DEPENDS ..
They are a Great little car for the Commutter market an in most areas..For Hwy use? Not so much..
In Senior Communities vs using a golf Cart? They are better
US Auto makers can't sell them at that Price here, why?
UAW that's why...It cost them $10k to make it here.. vs only $6k over there...
The UAW wouldn't allow it here..
Pay an Indie $25 per 8 hr day ( $3/hr) and they are making equal to $200 per day here..
And why can't we get Volkswagon Bugs made in Mexico? They say they aren't as safe? We only had them here for 20 yrs before.. they made them all fancied up..
It's a conspiricy.. Self Protectionisum if you will
Hit a USA made Compact like a Little Chevy with a Ford F150 Pick up or a GMC SUV and your just as Dead..
Want a Bigger car for Vacations? You just Go Rent one.. that's what we do..
Raise the Price of Gas to $4/gal and then we'll see..$1 gas tax to fund that National Health Care plan will generate over $175 Billion a Yr to more than pay for it..
Of course, They will fin a way to steal most of it for other things, like pay off the Nat'l debt or bail out Womens Shoe Co.'s...
Just like they lied to us on increasing Cig taxes and Using the Lotto $ for Health care and Education..
Yeah, Right.. Look how well that went ....
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9-23-2009 @ 6:04PM
ron said...
limoman,
i find it hard to believe thta you can compare costs in usa versus india. i'm also sure that india doesn't have the envirormental, worker safety or vehicle safety laws we have.
and don't you think that the indian government helped ford?
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9-23-2009 @ 11:55PM
Jonathan said...
Figo is the masculin version of figa that in italian slang means vagina.
In Italy they say to a beautiful woman as a vulgar compliment, "Bella figa", that means beautiful vagina.
From that came out the masculin version "Bel figo"
To call a car Figo is kind of .............funny.
Reply
9-24-2009 @ 8:26AM
prale30703 said...
I have a Ford less then two years old and have spent over 20% of its MSRP on repairs (leaking transmission lines and a rusted through A/C line) .I do not care if Ford delivers the next super car, I will not even step on the dealers Lot!
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