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September 8, 1999

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Ford to introduce Ikon in three engine versions

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Ford Motor Company of the United States has decided to introduce its new mid-size car, the Ikon, in three engine displacements of 1300cc, 1600cc and 1800cc and expects the car to drive its Indian subsidiary -- Ford India Limited -- out of the red by the year 2001.

Ford has also targetted to sell around 20,000 units of the Ikon in India during the year 2000, FIL vice-president (marketing and sales) John Fink said.

''In the year 2000, we expect to become cash positive and then work towards achieving profitability...Break-even is expected only in the year 2001,'' he added.

Regarding the Ikon, Fink said, two versions -- mid-spec and fully loaded -- would be introduced in every engine segment. The Ikon is slated to hit the streets in November.

While the 1300cc and the 1600cc versions would be petrol-driven, the 1800cc car would be a diesel version. ''All the versions would be introduced simultaneously.''

The company is looking at a 60-30 petrol-diesel production mix for the Ikon. ''However, the final distribution would depend on exact demand pattern. If the demand is more or less for any particular model, the production would be altered accordingly.''

It also intends to commence exports of the Ikon from India within a year of starting production from its Maraimallai Nagar plant near Madras. Certain Asian and Latin American countries are being targetted as export destinations for the car.

The Ford Escort sales for August, Fink said, has exceeded projections. Its sales for the month stood at 172 units as against the projected 150 units

FMC has also decided not to resume production of its luxury sedan the Escort till the sale of its next offering for the Indian roads, the Ikon, stabilises.

However, the company is yet to fix a time-frame for the Ikon sales to pick up and stabilise, Fink said.

''Production of the Escort has been stalled since May when we decided to move out of our Nashik (Maharashtra) unit. We had then produced enough units of the Escort to last till December. However, we are yet to decide as to by when we should recommence sale of the Escort," Fink added.

''The Escort sales have slackened over the years and now we are utilising all our resources for the Ikon,'' he said.

Ford was initially producing the Escort from Mahindra and Mahindra's Nashik plant. ''However, M&M wanted the plant back for its own use and we also had our Madras plant in place. So we decided to shift out of Nashik bag and baggage.''

Meanwhile, Ford India today announced a new customer service initiative to provide Ford car-owners with a memorable service experience.

Ford India's customer service will now be branded Qualitycare, and will be implemented in all dealerships in a phased manner.

The brand message Qualitycare At Your Service, has been chosen to reflect Ford's commitment to making servicing a pleasurable experience for customers.

Qualitycare is a global service brand from Ford. It has already been established in Ford dealerships in North America. Ford India has taken the lead over other Ford operations worldwide and has timed the launch of Qualitycare in India with the launch of the Ford Ikon.

While launching the Qualitycare brand in India, Phil Spender, managing director, FIL, said, ''Ford is changing its focus -- from being a car manufacturing company to being a consumer focussed company. Qualitycare is a servicing philosophy, where world-class standards of quality service systems are combined to transform automobile servicing into a pleasurable, comfortable and convenient experience for the customer. Qualitycare will give Ford a competitive edge, with the right people, the right parts, at the right price.''

One of the key elements of Ford's global leadership is the ability to forge a strong relationship with customers at every step of the product lifecycle to create a positive overall ownership experience. ''It reinforces our commitment to make servicing a delightful experience for our customers. Qualitycare will redefine customer service benchmarks in the auto industry,'' Fink said.

Ford India is increasing the number of dealerships across the country. There will be 44 dealer outlets spread across India, giving FIL an excellent customer reach. With Qualitycare, Ford's world-class processes for customer service will be operational and customers can get the same ''brand experience'' at every dealership.

UNI

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