Michael Robinet, managing director of IHS Consulting, said a single name helps in emerging markets."With the impact of the Internet and name awareness, there are definitely economies of scale and the ability to build brand equity around the world," Robinet said. "When you pick a name that is universally accepted, like Focus or Corolla or Fiesta or Beetle, it reduces marketing costs." Ford may be ahead of some of its peers, but other carmakers are pursuing the strategy.Chevrolet Cruze, for example, bears the same name everywhere but Australia where General Motors sells under the Holden brand, said GM spokesman Klaus-Peter Martin.There is a compact Opel Astra sold in Europe and the Vauxhall Astra in the U.K., but it is a different vehicle, although close in size to the Cruze. Chevrolet also sells the Cruze in Europe, Martin said. Chrysler revived the Cherokee name for a new generation of what was the Jeep Liberty, because a version of the small SUV is sold as a Cherokee in other parts of the world.Even Ford has naming discrepancies to address. The Ford Escape is sold as the Kuga in Europe; the Fusion is sold as the Mondeo. But executives are considering single names in the future and which names should prevail if they make the change.Ford sales analyst Erich Merkle said the Focus is particularly strong in the U.S. and China. Ford sold almost 246,000 in the U.S. last year, up 40%.China now accounts for one in four Focus sales. In China, consumers can buy a more affordable "classic" or previous-generation Focus or the more expensive current model.Ford invested $490 million in Chongqing to produce the current Focus. Last year in China, Focus sales rose 51%, mostly in the second half of the year, Merkle said.It ranked as the best-selling passenger car in China, Farley said."With additional manufacturing capacity added last year, we now have a tremendous opportunity to further strengthen our global small-car sales in 2013," Farley said.
Tuesday, April 9, 2013
Ford Focus No. 1 in 2012 global car sales, new report says
Michael Robinet, managing director of IHS Consulting, said a single name helps in emerging markets."With the impact of the Internet and name awareness, there are definitely economies of scale and the ability to build brand equity around the world," Robinet said. "When you pick a name that is universally accepted, like Focus or Corolla or Fiesta or Beetle, it reduces marketing costs." Ford may be ahead of some of its peers, but other carmakers are pursuing the strategy.Chevrolet Cruze, for example, bears the same name everywhere but Australia where General Motors sells under the Holden brand, said GM spokesman Klaus-Peter Martin.There is a compact Opel Astra sold in Europe and the Vauxhall Astra in the U.K., but it is a different vehicle, although close in size to the Cruze. Chevrolet also sells the Cruze in Europe, Martin said. Chrysler revived the Cherokee name for a new generation of what was the Jeep Liberty, because a version of the small SUV is sold as a Cherokee in other parts of the world.Even Ford has naming discrepancies to address. The Ford Escape is sold as the Kuga in Europe; the Fusion is sold as the Mondeo. But executives are considering single names in the future and which names should prevail if they make the change.Ford sales analyst Erich Merkle said the Focus is particularly strong in the U.S. and China. Ford sold almost 246,000 in the U.S. last year, up 40%.China now accounts for one in four Focus sales. In China, consumers can buy a more affordable "classic" or previous-generation Focus or the more expensive current model.Ford invested $490 million in Chongqing to produce the current Focus. Last year in China, Focus sales rose 51%, mostly in the second half of the year, Merkle said.It ranked as the best-selling passenger car in China, Farley said."With additional manufacturing capacity added last year, we now have a tremendous opportunity to further strengthen our global small-car sales in 2013," Farley said.
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