One of the things that nearly doomed the entire US auto industry was bullheadedness over the years. There were prevailing opinions at the major American manufacturers that they were essentially above the normal realm of business and anything they wanted to accomplish would magically happen. They kept building big cars when no one wanted big cars. They made crummy small cars and invested few resources into making them better, killing massive amounts of market share. They also chased goals and continued to slog in areas of their business that they should have abandoned before it hurt them financially.
At least one company seems to have learned the lesson because Ford announced yesterday that because of a continuing lack of marketshare and profit that they would cease operations in Japan and Indonesia. The company had little more than 1% share in both of the markets and they sold a relative handful of vehicles in both places. Sales in Japan were 5,000 units and Indonesia were 6,000 according to the story from the Detroit Free Press linked below. For the infrastructure and investment required to function in those places, they had to have been bleeding money.
There are 52 Ford dealers in Japan and a few thousand employees. Because of the structure of the market in Japan, very few companies outside of those are are based within the country’s borders have any measurable level of success there. Yes, we see the irony as well. Ford’s been in Japan since 1974 but will be out before the end of 2016.
The story is much the same in Indonesia. GM stopped manufacturing in Indonesia last year but continues to sell there. Anytime there is an announcement like this we’re interest to see the fallout. It was over the span of a couple weeks last year that the Aussie automotive scene was dealt a series of body blows when manufacturer after manufacturer announced that they would stop building cars on Aussie shores. Will anyone else leave Japan? Time will tell.
At least the Ford guys are finally breaking a decades long cycle of beating their heads agains the wall and putting some money back into the collective pockets of the company.
CLICK LOGO TO SEE THE STORY ON FORD LEAVING JAPAN AND INDONESIA
Other than the Focus & Fiesta or maybe a mustang or two Ford wasn’t offering much to those markets. Unless they offer cars not available here, Japan? Land of the Subaru STi & similar makes? tuff market for sure same for Indonesia. git while the gittn’s good.
Even if Ford had the best of the best car that fits perfectly the Japanese market .They won`t buy it . Because it`a foreign company for them , period .
Japan is the most protectionist country in the world.
We need to be more protectionist here.