Competitiveness: Ford to add 140 dealerships in Thailand at a time Japan is coming on strong

Ford Mustang long tradition as a sexy car

  • By Pooky, Thai Intel’s economics journalist

Americans are proud of their cars and car makers, and in Thailand, Ford just announced a major expansion drive to up dealership by about 140. That drive, co-incidentally, comes as Toyota is celebrating its 50th year in Thailand.

  • Toyoya has been very successful in Thailand over the years, and Fore less successful-and as they say, one needs the right package, meaning-product, price, place and promotion.

On Matichon, a newspaper for the progressive Thai intellect, says USA‘s Ford Motors, is planning to expand its “Sales Dealership” and “Service Centers” in Thailand by about 140 units, in the near term.

That is a major expansion drive, in Thailand, a country Ford Motors has a production base, but a Thai tradition of buying mostly Japanese cars. And for a long time, the only reason holding Ford back, according to local press analysis, is the “Chicken and Egg” question of what comes first, sales or dealership.

  • Yet for many year, as Ford grappled, with the Chicken and Egg question, resulting in limited number of dealerships and service centers, Japan‘s auto makers in Thailand have traditionally used a “Blazed a Path” strategy, in opening dealerships and service centers, in even low volume area of Thailand.

Latest news from Toyota, is a new multi million dollar plant, in Thailand and more types of cars to be produced and launched in Thailand. Similarly, other Japanese auto makers, are very much on this path also.

  • It is very difficult for Ford to play “Catch Up” in Thailand, undoubtedly, one of the fastest growing auto market in Asia, with a solid GDP growth and lots of roads at the center of mainland ASEAN-to the likes of Japan auto makers. And yet not very long ago, the USA, have just all but abandoned Thailand for the Japanese.

The USA auto makers success so far is impressive, but it is running very handicapped.

It all, off course, boils down to also the product, not just price and place. Here, perhaps, with the product, it is a cultural thing. As for some reason, USA auto makers are just not producing automobile that the Thais can get very excited about.