Ford Lio Ho, the 70/30-owned joint venture Taiwanese unit of Ford Motor Company, has become the country’s first volume exporter of completely built-up (CBU) vehicles with a shipment of around 500 units of the recently introduced redesigned Escape SUV to Asia Pacific markets.
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The first vehicles headed for Asia Pacific markets including Japan, Australia and New Zealand after a ceremony at Taipei Port.
The Escape, recently redesigned for Asia at Ford’s Lio Ho Design Centre, was first assembled in Taiwan from CKD kits in 2002. It is built at the automaker’s assembly plant in Taoyuan, about 40 miles from Taipei.
The plant currently builds both Ford- and Mazda-branded vehicles for the Taiwanese domestic market but now plans to ship 10,000 CBU export units in the programme’s first year.
“Ford Lio Ho’s role as a regional export hub for the leading SUV nameplate – Escape – underscores its increased strategic importance in Ford Motor Company’s commitment to grow its business in the Asia Pacific region,” Ford Motor said in a statement.
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By GlobalDataThe automaker’s president of international operations, Mark Schulz, said: “To be a successful regional operation, Ford has implemented a series of organisational and manufacturing strategies to better drive results in efficiency, quality and costs.
“For example, we have rationalised our purchasing processes across all 12 markets, and our manufacturing strategy centres around a core of regional production and export hubs to serve the region’s needs.”
Ford Lio Ho was established – initially assembling CKD Escorts and Cortinas – as a 70%/30% joint venture between Ford and local machinery maker Lio Ho Group in 1972 and today builds, distributes, sells, services and finances Ford and Mazda brand vehicles in Taiwan.
With a market share of 16.6% and unit sales of over 85,000 vehicles in 2005, it is among the top automakers in Taiwan and also serves as an engineering and design hub for the region.
Taiwanese design and engineering teams led development of the redesigned Escape SUV for the Asia Pacific region.
The export programme caused increased complexity in the production process requiring, for example, right-hand and left-hand drivetrains coupled with different powertrain options that must comply with each individual country’s regulatory standards.
Ford Lio Ho had earlier invested in upgrading its facilities to incorporate the latest in manufacturing technology. The plant features mixed line production capability that allows the assembly of a complex and mixed vehicle schedule on one production line, demonstrating high flexibility and quality control consistent with global manufacturing standards.
Building as many as 13 nameplates – Ford’s Focus, Escape, Metrostar (a Taiwanese version of the European Mondeo), RS Mondeo, Tierra, Activa, Pronto, Econovan (a Ford version of Mazda’s E-series/Bongo van) plus the Mazda 3, 5, Isamu, Bongo and Tribute (Mazda version of the Escape) – Ford Lio Ho has production capacity of 200,000 units a year.
The latest Escape, launched in Taiwan last April, has new exterior styling, a more luxurious and practical interior and upgraded powertrains claimed to “significantly” improve driving quality and reduce fuel consumption. It offers the choice of two petrol engines – a 2.3-litre I4 or a three-litre V6.
This new Escape will be introduced in other Asia Pacific markets in coming months to come.
An earlier ‘teaser’ concept of the vehicle, called the Equator, appeared at the 2005 Tokyo motor show, followed by the 2006 Taipei auto show and several other appearances at major auto shows in Asia Pacific markets.
