Former Ford chief Alan Mulally established the OneFord strategy to rationalise product lines around the globe as much as possible but that doesn’t mean every market has to take all the model lines offered. Example: Ford Australia has said ‘no’ to the new, Brazilian-designed, Indian-built Ka+ recently launched here in Europe.
According to local auto industry newsletter GoAutoNews, the Antipodean unit will not extend its range below the current Thai-built Fiesta because the micro-car market ‘down under’ is struggling and the ageing Fiesta’s sales are down 42.8% year on year so far in 2016. Cheap petrol and discounted models in the light car class one segment above have hit micro-car sales and the automaker cannot see a business case justifying entering a new segment.
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Two decades ago, it sold two generations of the Kia Pride rebadged as the entry level Ford Festiva (aka Aspire in North America).
A Ford Australia spokesman told the publication the business case did not ‘stack up’. Year to date, microcar sales have dipped 27.3% and that follows a 32.3% fall in 2015.
Current players in the segment include the Thai-built Mitsubishi Mirage, GM Korea Holden Spark, Fiat 500 sourced from Poland and newly launched Kia Picanto, also from Korea.
Light-car segment sales in contrast are down 16.2%, year to date.
