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Ford Out Of Japan And Indonesia


kakatiya

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’ve been to Japan several times in recent years, and—trust me on this—Ford vehicles are thin on the ground. Just as Japan is not exactly a melting pot of ethnic groups, it’s not much of a buyer of foreign cars. Ford Japan sold just 5,000 cars in 2015, which means it had 1.5 percent of a pretty small market. Only five percent of sales in Japan are imports.

Still, the Japanese market is the third largest in the world, behind the U.S. and China, and more than nine million cars find buyers annually. It’s not surprising that American companies want a piece of that, but it’s not likely to happen.

Jack Nerad, executive editorial director at Kelley Blue Book, tells me:
The typical Japanese car buyer is pre-disposed to buy a car from a Japanese manufacturer. This is essentially how the society works, and the mindset is reinforced by the way cars are sold in Japan, often by personal sales, some done door-to-door. This style of selling is alien to non-Japanese car companies and largely outside their areas of expertise. Well-off Japanese consumers do seek out international luxury brands—BMW, Mercedes-Benz—but the average Japanese car buyer has exhibited no serious desire to buy an imported vehicle.
General Motors actually does worse than Ford in that market. In 2013, the company said it had big plans to sell cars in the Land of the Rising Sun, even though its sales then stood at 1,000 Caddys and Chevys per year. A year later, sales “soared”…to 1,200. C’mon, GM, couldn’t you offer right-hand-drive over there? One Japanese dealer criticized GM’s “lack of effort.

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