Ford Trucks For Sale

Ford India has registered a profit after tax in 2006-07, for the first time since it started manufacturing at a greenfield plant here eight years back. Hyundai Motor India’s net profit for the year is down compared to that in 2005-06.

Ford India’s financial performance has been boosted by a 45-per cent increase in vehicle sales, mainly driven by the Fiesta sedan it launched towards the end of calendar year 2005.

Hyundai Motor India’s vehicle sales increased 19 per cent during the year.

Both Ford India and Hyundai Motor India have their plants on the outskirts of Chennai. Ford India’s plant is at Maraimalai Nagar, about 35 km south of the city, and that of Hyundai Motor India at Irungattukottai, about 45 km to the west.

Ford India signed an agreement with the Tamil Nadu Government in January 1996 and started manufacturing operations at its plant here in 1999 while Hyundai Motor India signed the agreement in early 1997 and launched its first car in October 1998.

Ford produces the Ikon, Fiesta, Fusion and Endeavour, while Hyundai manufactures the Santro, i10, Getz, Accent, Verna and Sonata.

Ford India carries over an accumulated loss of Rs 768.80 crore.

The company has not declared a dividend for the year.

Pressure on cost Hyundai Motor India, in its annual report, has attributed the lower profit figures to the pressure on cost as a result of launch of new models, higher selling expenses, surge in interest costs and to the withdrawal of export benefits such as Target Plus scheme.

Hyundai has not declared a dividend for the year “as part of prudent financial measure” and “keeping in view the fund requirement for meeting the company’s investments in the new capital projects.”

However, Hyundai Motor India has paid a royalty and technical assistance fees of Rs 369.77 crore for the year (Rs 308.30 crore in the previous year) to its parent Hyundai Motor Company of Korea. Hyundai has transferred its “after service parts” – manufacturing and marketing auto parts, components, spare parts and related accessories – business division to Mobis India Ltd on a slump sale basis, so that it can concentrate on vehicle manufacture only. Mobis is a Hyundai group company.

Hyundai had an other income component of Rs 356.86 crore (Rs 470.48 crore), which included Rs 45 crore as gain on exchange fluctuation, and about Rs 190 crore as export benefits compared to export benefits of Rs 363 crore in the previous year. Hyundai Motor India had protested the Centre’s move to withdraw the Target Plus scheme for exports (under which it got Rs 160 crore in 2005-06, compared to Rs 8.5 crore under a new scheme this year) retrospectively from April 2006.

Accumulated losses Ford India’s auditors have noted that the accumulated losses of Rs 768.80 crore exceeded 50 per cent of the company’s net worth as on March 31, 2007.

Jason from Maineville, Ohio: I’ve been a longtime Ford fan, and I think it’s terribly unfortunate that they only field about eight cars on a regular basis when a few years back they had more cars than any other manufacturer, including Chevrolet. I know Ford has dropped the ball when it comes to their research and development teams, but what is it going to take to get them back on top again?

Larry McReynolds: I’m seeing them flirt with getting back there. Matt Kenseth was lights out at the last race of the season at Homestead-Miami Speedway, winning the event in runaway fashion. Even though we’re done with the “old car,” look at how strong Kenseth also was at Texas. Also consider Greg Biffle, who won Kansas and finished second at Phoenix. Carl Edwards sat on the pole at Phoenix and led every lap until his engine had issues.

Do I think Ford could stack the deck with more than Roush-Yates and the Wood Brothers? Of course, all of their engines come from one source. They probably could stand a little more. When I was part of the Ford camp in the 1990s, it was three or four operations strong.

Even though they only had two drivers in the Chase for the Nextel Cup in 2007, I witnessed some pretty strong performances in the fall that should make everybody fairly excited about next year with the Ford camp as the Sprint Cup starts racing the Car of Tomorrow full-time in 2008.

Racing’s about people, not manufacturers

Nick from Huber Heights, Ohio: Hi Larry. What are your thoughts on the Wood Brothers situation? I am a diehard Bill Elliott fan so I was wondering what are the chances of us seeing him in the No. 21 car next year?

Larry McReynolds: I don’t know Elliott’s status, but I do know the Wood Brothers are looking for sponsorship. You ask a good follow-up question from the one above. Whether you run a Chevrolet, Toyota, Dodge or Ford or whether you’re running the Busch, Cup or Truck Series, the difference between winning and losing isn’t because a manufacturer has a better car or more horsepower. It’s about the people. Rick Hendrick has done a phenomenal job with not one or two teams but three to four teams with good people.

What is it going to take to get more Fords competitive? It’s not that they need more horsepower or need to build a better race car. Let’s face it — chassis and bodywise — the Ford Fusion isn’t going to be any different than a Chevy Impala, Dodge Charger or a Toyota Camry. It’s about making sure that good people are working together.

That’s probably what’s missing with the Wood Brothers. Even though Elliott is one of the greatest drivers we’ve ever had, the way these cars drive and are set up may have outrun him just a little bit. I’m not saying that if Bill Elliott climbed into Jimmie Johnson’s car, he couldn’t win 10 races. But the way that these guys are winning races is different from the way Elliott, Bobby Labonte, Dale Jarrett and Darrell Waltrip won races.

Those guys used to race the racetrack. When the last 100 laps came along, they would see who fell by the wayside and then step it up. I worked as Darrell’s spotter during a Craftsman Truck Series race at Martinsville. He told me, “Larry, make sure you let me know when there’s 50 to go.” He was going to reach down in that barrel and grab some more.

Today, Jeff Gordon, Jimmie Johnson and Matt Kenseth are running up front, and they’re at the bottom of the barrel when the green-flag waves. They aren’t racing anything but wide open from Lap 1 to the final lap. You’ve still got to be smart, race the racetrack and not overextend your equipment. But these guys are not laying back to win races like they used to 10 to 20 years ago.

In 26 years of selling cars and trucks, Ken Venema says he has never seen a feature impress customers like Ford’s SYNC.

“I must have a half-dozen sales because of SYNC. I strongly believe that,” said Venema, a sales consultant at Pfeiffer Lincoln Mercury in Grand Rapids, Mich. “I’m sold on it. And I’m sure glad Ford’s got it.”

The dealership even switched its radio spots recently from advertising price to promoting SYNC.

“I am using (SYNC) as a showroom builder. I am pumped on it because it’s something that we can offer the market that doesn’t focus on price, and it’s something we have that our competitors don’t,” said Kim Winkler, new car sales manager, Pfeiffer Lincoln Mercury.

SYNC, Ford’s industry-exclusive technology that provides customers in-vehicle voice command compatibility with portable digital media players and most Bluetooth-enabled mobile phones, is helping drive vehicles sales across the country.

SYNC-equipped Ford, Lincoln and Mercury vehicles were moving more than twice as fast off dealer lots in November than those same vehicles without SYNC. And customer satisfaction is high.

According to a Ford survey of SYNC customers, nearly 80 percent of respondents “definitely would” recommend it to a friend. Microsoft, which collaborated with Ford on the technology, was very encouraged.

“It’s early in SYNC’s launch — we’ll know more about its impact in a few months — but so far all indicators are extraordinarily positive,” explained John Emmert, SYNC marketing manager, Ford Motor Company.

The survey also revealed that most customers thought SYNC was easy to use, and that dealers were helpful in explaining and demonstrating the new technology.

Sales consultant Everton McLeod of Manhattan (N.Y.) Ford says extensive in-dealership training prior to SYNC’S launch was very beneficial.

“It wasn’t like they just told us about it. Everybody had to do something — pair a phone, dial a number — so the instructor could see that we actually grasped what he taught us,” said McLeod.

SYNC is also hitting its targeted customers, which include a savvy, tech-toting younger demographic as well as an older group that likes the convenience of hands-free mobile phone operation.

Emmert says Ford employees frequently stop him at work to relate stories about SYNC’s ability to raise awareness and purchase consideration for the company’s products among relatives and friends who swore off domestic vehicles years ago.

“When you think about a feature having the power to put Ford back on customers’ shopping lists, it’s pretty impressive,” he said.

SYNC currently is offered on 12 Ford, Lincoln and Mercury models. The first SYNC-equipped vehicles, including the redesigned 2008 Ford Focus, began reaching customers in late September. When offered as an option, the system is priced at $395.

Toyota plans to sell 9.85 million vehicles worldwide in 2008 as it tries to become the world’s top automaker, the company says.

It is an ambitious target and comes despite worries about a slowing US car market.

Toyota also said it plans to produce 9.95 million vehicles worldwide next year, up 5 per cent from this year - the same projected on-year percentage jump for Toyota’s global sales.

Its recent growth has put Toyota Motor Corp. on track to beat US-based General Motors to become the world’s biggest automaker by sales. GM has said it estimates this year’s sales to total 9.3 million vehicles, against Toyota’s estimate of 9.36 million sales.

Toyota’s growth been based in large part on the popularity of models such as the Camry sedan, Corolla subcompact and the Prius gas-electric hybrid.

Soaring gas prices have dramatically boosted the appeal of smaller fuel-efficient models that are Toyota’s main strength.

General Motors has been fiercely fighting back, boosting its overseas business and could yet maintain the top industry spot which it has held for 76 years.

GM has not given a forecast for the number of vehicles it expects to produce or sell in 2008. But the Detroit automaker has the industry record for annual global vehicle sales at 9.55 million vehicles, sold by GM in 1978.

Toyota executives acknowledged Tuesday worries about the US market, which has been hit by the subprime mortgage crisis and soaring oil prices. But they remained upbeat about increasing sales in the key US market - projecting 2.64 million vehicles, edging up one per cent from this year.

They were also bullish about prospects for emerging markets such as China, Russia and South America, while being conservative in expectations for Europe at a two per cent increase to 1.27 million vehicles, and seeing sales in Japan remain flat at 1.6 million next year.

But Koji Endo, auto analyst with Credit Suisse in Tokyo, said next year will likely prove a challenge even for Toyota, as US economic woes weigh on sales and profits.

But he said the overall optimism for sales growth was “reasonable,” given Toyota’s recent performance.

“These are targets Toyota is giving, not forecasts, and so they are reasonable,” he said.

After the first nine months of this year, Toyota was - at 7.05 million vehicles sold worldwide - trailing GM’s sales of 7.06 million vehicles for the same period. The final tally for this year’s numbers won’t be out until January next year.

GM’s spokesman in Tokyo Michihiro Yamamori declined to comment, citing company policy to refrain from commenting on its rivals’ targets.

Toyota also said it was preparing to start mass producing lithium-ion batteries for low-emission vehicles.

Lithium-ion batteries, already widely used in laptops and other gadgets, are smaller yet more powerful than the nickel-metal hydride batteries used in gas-electric hybrids like the Prius now.

Lithium-ion batteries will not be used in the Prius, on sale for a decade and the most popular hybrid on the market, according to Toyota.

The lithium-ion battery will be used in a plug-in hybrid, which would recharge from a regular home socket, and travel longer as an electric vehicle than the Prius. Toyota has started tests on its plug-in hybrid, but has not shown a model using the new battery.

Executive Vice President Masatami Takimoto, who oversees technology, said Toyota had developed the lithium-ion battery to a level that it is almost ready for mass production, although that won’t start until sometime after next year.

Toyota President Katsuaki Watanabe said the hybrid will be a pillar of Toyota’s growth in the years ahead, and he reiterated the plan to offer hybrid versions of all its models sometime after 2020.