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Ford’s new strategy gives greater autonomy to the local management team, and will contribute to a global restructuring plan to save $11 billion over the next few years by cutting costs, forming partnerships and investing in new technologies. The strategy already seems to be giving Ford a cautious beginning to better sales in India novel cufflinks uk sale. Ford India made a profit of 5.26 billion rupees ($72 million) in the fiscal year that ended on March 31 compared with a loss of 5.21 billion rupees a year ago, according to a regulatory filing..
In contrast, General Motors decided to cut its losses and stopped selling cars in India last year while Volkswagen took a backseat, handing over strategy for the country to its sister-company Skoda. Ford’s top Asia and India executives came up with EMOM during a week-long strategy meeting in Shanghai in late 2016 and picked India as a testbed. The strategy has not formally been taken to other markets yet novel cufflinks uk sale. “We realized we need to have a sustainable and profitable business in India,” said Mehrotra, adding that Ford looked at its brand, products, cost and scale to improve efficiency..
For instance, in its Figo hatchback that sells for as little as 600,000 rupees ($8,200), Ford used imported floormats that cost more than locally sourced ones. During a review under EMOM it learned that buyers don’t really want imported mats, he said novel cufflinks uk sale. It reduced logistics costs by 20 percent by switching to rail freight instead of roads, and increased the use of locally sourced components in its cars to more than 85 percent from about 60-70 percent. Ford officials also said the company has developed a low-cost dealership format which is smaller in size and has fewer cars on display. It costs half of the 50-60 million rupees Ford usually spends on things like showroom inventory, spare parts and the sales force when setting up a dealership..
In the last 18 months it has opened more than 100 such dealerships, especially in smaller towns and cities to further its reach, Mehrotra said. It would earlier cost Ford about three times the amount a domestic carmaker would spend on a product upgrade because Ford India needs to pay a fee, or royalty, to the parent, said a source aware of the changes novel cufflinks uk sale. Under EMOM, Ford India will develop more products in-house, making it more responsive to market changes and reducing the royalty fee, which will boost profits, the source said..
“One Ford doesn’t work anymore,” said the source, alluding to a global product strategy devised by former CEO Alan Mulally. “It will be there in spirit, but it will not be implemented the same way as it was two years ago.” novel cufflinks uk sale. Ford last year formed an alliance with SUV and truck-maker Mahindra to co-develop vehicles, including electric cars, share powertrains and work on new technologies. The carmaker made a similar strategy shift in China, giving up on its “One Ford” model and working with local, low-cost carmakers to come up with more competitive mainstream cars and boost sales..