Ford Motor Co. (F - Analyst Report) has revealed that it will introduce four models in Taiwan in the next 3 to 4 years as a part of its expansion plan in the Asia-Pacific region. The company has been operating in Taiwan since 1986. In the first 11 months of 2010, it sold 31,530 vehicles in the country, up 27% from the year ago level.
Ford has been pursuing its expansion plan in the emerging countries, including Argentina, Brazil, China, India and Thailand. Through the plan, the automaker aims to tap the growing market potential in other countries, especially those in Asia.
In the first 10 months of the year, Ford’s sales in the Asian-Pacific and African regions shot up 39% to 731,724 vehicles. Ford anticipates 70% of its sales growth to come from Asia Pacific and Africa region in the next 10 years, mostly from China and India. Industry sales in the region are expected to grow from 16 million units in 2009 to 35 million units by 2018.
Since 2009, Ford has invested $510 million in China and $500 million in India as part of its expansion plan. This year, Ford and Japan’s Mazda Motor announced their plan to invest $800 million in their Auto Alliance joint venture in Rayong, Thailand.
Recently, the automaker has added 40 new dealerships in China in order to gain foothold in fast-growing market. It further plans to add 66 new dealerships by the end of the year, raising its total dealerships to 340 in the country.
Ford, a Zacks #3 Rank (Hold) stock,showed an $1.04 billion rise in profit to $1.91 billion or 48 cents per share (before special items) in the third quarter of the year from $871 million or 26 cents per share (before special items) in the same quarter a year-ago. The profits surpassed the Zacks Consensus Estimate by 10 cents per share during the quarter.
The improvement in profit was fueled by the strength of Ford’s new products, consistently better performance at Ford Credit as well as a recovery in the North American automotive market.
Total revenue slipped 4.3% to $29 billion, including revenues generated from Volvo cars in 2009. This compared with the Zacks Consensus Estimate of $28.16 billion. However, excluding revenues from Volvo, sales improved $1.7 billion or 5.6% from the third quarter of 2009.