Ford Motor Company said floods in Thailand prevented its Asia Pacific and Africa sales region from making profit in 2011. Ford had set the goal to be profitable in all its global business units.
“The impact of the Thai floods is a bit bigger than we anticipated. We guided in the third quarter that all business units would be profitable for the full year. We now think that’s no longer possible because of the impact of the Thai floods,” Ford Chief Financial Officer Lewis Booth said during a presentation at the Detroit auto show.
By 2015, Ford plans to increase global sales by 50 percent to 8 million vehicles, with Asia deliveries expected to account for one-third of Ford’s sales by 2020. The U.S. automaker now has less than 3 percent of the Chinese market.
Ford will build seven factories and will introduce 50 new models and engines to the Asian market by 2015, according to Joe Hinrichs, Ford Asia Pacific chief. Ford sales in China rose 7 percent in 2011, double the overall local market’s growth rate. Hinrichs also said Ford will open two factories in China by 2013 and will introduce two SUVs this year to the market.