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Ford Committed to Growth in Asian Markets

7 August 1998

Ford Committed to Growth in Asian Markets

    TRAVERSE CITY, Mich., Aug. 6 -- Despite the economic ills
plaguing much of Asia, Ford Motor Company remains committed to Asia-
Pacific markets and will continue to take a "reasoned and flexible" approach
to investment in the region, Wayne Booker, Vice Chairman, Ford Motor Company,
said at the University of Michigan Management Briefing Seminar being held here
this week.
    "We at Ford remain confident in the markets of Asia," said Booker.  "We
don't feel that it makes sense to put our investments on hold in this
situation.  We're in Asia-Pacific for the long-term."
    Although the downturn has had a profound effect on the economic and
political outlook in these countries, in particular in the automotive
industry, Booker believes the Asia-Pacific markets have great potential.
    "For the past 30 years, economic growth in this region has been
phenomenal," he said.  "For example, the members of the Association of South
East Asian Nations -- ASEAN -- have experienced a 6.4 percent growth rate
between 1984 and 1997, and have emerged as the fourth largest trading region
in the world after the European Union, NAFTA and Japan."
    Booker, who praised the ASEAN and Asia-Pacific Economic Cooperation --
APEC -- initiatives to hasten economic recovery in the region, believes Ford's
strategy complements what most Asian nations are doing to emerge from the
economic downturn.
    "Our 'reasoned and flexible' strategy provides for evaluating markets,
determining their potential, then growing them wisely and prudently," said
Booker.  "This approach means targeting the level of investment -- tailoring
manufacturing, assembly and marketing operations to a size and complexity that
makes sense for the market."
    Ford's approach includes a "complementation" strategy where the company
seeks to identify cross-shipping opportunities between geographic markets to
increase product offerings to consumers.  The opportunity for regional exports
enables Ford to build manufacturing facilities in low-volume markets.
    "Very importantly, we believe our 'reasoned and flexible' strategy is
right because it includes a commitment to local economies," said Booker.  "Our
attitude is to be of the country ... not just in it."
    This includes transferring process and product technology to host nations,
as well as recruiting and training local talent, he explained.  It also
includes establishing a strong base of globally operated local suppliers
within the economy that can deliver high-quality, low-cost components across
the region.
    "Our strategies have enabled us to establish a presence in China, India,
Thailand, Malaysia, Vietnam and the Philippines as well as Belarus and South
Africa," said Booker.  "These strong starts have given us confidence that we
can achieve our objectives.
    "By looking beyond borders, we're laying the groundwork for a climate of
competitive free trade and local market investment that benefits globally
based companies, like Ford, as it improves local economies," said Booker.
    "We believe our 'reasoned and flexible' investment strategy will help Asia
recover from its current economic crisis ... and enable Ford and its suppliers
to compete regionally and globally over the long term."