Tuesday, January 08, 2008

Ford Tough

Well, now. After being trounced by Asian auto makers in the US market, Ford has decided to get active. Unfortunately, that activity is not going to take place in the United States, according to this Reuters article.

Ford Motor Co. said on Tuesday it plans to invest $500 million in India to double manufacturing capacity by 2010 and make a small car and engines, making the fast-growing market a key production hub in Asia-Pacific region.

The investment, which takes Ford's commitments in India to more than $875 million, comes on the heels of similar moves in Thailand and China, the other markets the U.S. car maker has identified as key to its regional growth strategy.

"We see China, India and ASEAN as three important markets for increasing our Asia-Pacific footprint," said John Parker, executive vice president for Asia-Pacific and Africa, referring to the south east Asian region.


Apparently Ford believes they can sell cars in these growing markets, so I guess it makes sense in terms of the corporate bottom line to invest there. What is so puzzling to me, however, is the following:

India will become a strategic production hub for small cars at Ford, which joins a growing list of carmakers focusing on small cars as oil topped $100 a barrel and the move to fuel-efficient "green" cars gains momentum.

Demand for the Prius and other smaller, more efficient vehicles is high in the US, so high that there are waiting times for the actual delivery of those vehicles. Does Ford pay attention to things like this? If so, why aren't those "fuel-efficient 'green' cars" being built and sold here? Why isn't Ford willing to make that kind of financial commitment to the people of this country?

I know, that's a pretty naive question. Production costs are higher because auto workers are unionized and therefore high-paid and because Ford would have to provide health insurance and pensions. The Asian market doesn't require any of that, at least not yet.

I guess good citizenship isn't required of corporations. I'm just waiting for the time when we can make it a requirement before we bail another industry out, or extend another bit of corporate welfare. Maybe even in my life time.

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1 Comments:

Blogger shrimplate said...

"Corporation" and "Psychopath" are virtual synonyms.

8:55 PM  

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