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Ford Motors said on Feb 16 that it would discontinue the production of the `Fusion' hatchback by March after it launches the Figo compact car in the domestic market.
In line with the company's plans for India, specifically in the compact car segment - the single biggest domestic segment by volumes, the US-based automaker has also opened 28 new dealerships across 24 cities. With a thrust on Tier II and III cities, the expansion would take the carmaker's total dealership spread to 164 facilities across 97 cities.
"We have made a decision to discontinue the Fusion, after the Figo is launched. The Fusion was anyway giving us very low volumes. The Figo, which is a game changer for Ford's operations in India, will mark its entry into the mass segment. We will continue to position ourselves in every segment and not be a niche player," said Mr Michael Boneham, Managing Director & President, Ford India, while speaking at a dealership launch. Ford is also looking to develop India as an export hub after its new 2.5 lakh capacity engine plant and 2 lakh capacity car plants comes on stream at full production levels. The company, which has invested $500 million in its engine plant, inaugurated it on February 5.
When asked about other new launches like the 2010 Fiesta model, which has been doing test runs around the country, Mr Boneham said that the company has plans to launch a new car in every gap of 12 months. Responding to possibilities of the company's newly developed Ecoboost engine being deployed in India, Mr Boneham said that the introduction of the new engine in India involves huge costs, but the company may consider it if it finds the right volumes. Dealership expansion is part of the company's strategic thrust into the mass market compact car segment, with which it would like to be present in most cities and secondary markets across the country.
As a run-up to the launch of the Figo, Ford has increased its domestic dealerships by 40 per cent in the last 18 months. "Tier II and III cities are significant for Ford. We have opened facilities in 13 Tier III cities today. We will increase our network further by 15-20 per cent this year," he said. The Fusion five-door large hatchback was launched in 2004 and promoted as a combination of a hatchback and sports utility vehicle. It is currently available in three variants. According to Society of Indian Automobile Manufacturers data, Ford has not sold even one unit of the Fusion this January, compared with 47 units in the same month last year. Cumulative sales of the car in the April-January period fell more than three times at 507 units, compared with 1,737 units in the same period last fiscal.
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