Focus on Asia

Asia offers tremendous opportunities for our Company. The fastest-growing markets for automobiles are in rapidly developing countries, especially China and India. China will remain the largest car market in the world for the foreseeable future, and India is projected to be the third-largest market in the world for the coming decade. By 2020, annual vehicle sales in the Asia Pacific and Africa region will likely reach nearly 50 million vehicles, with some 30 million of them in China.²

We estimate that 60 to 70 percent of Ford’s growth in the next 10 years will come from this part of the world. Today, one in every five vehicles we sell globally is in Asia Pacific and Africa. By 2020, it will be one in three.

To keep pace with this enormous growth, we are building new plants and expanding existing ones, hiring workers, growing our dealer networks, and further developing our supply chain across China, India and Thailand.

Ford has been operating in China through two joint ventures: Changan Ford Automobile (CAF)³ and Jiangling Motors Corporation, Ltd. (JMC), which assembles Ford and JMC vehicles for distribution in China.

In 2012, Ford China set an annual sales record, selling 626,616 wholesale vehicles, up 21 percent from 519,390 wholesale the previous year. For several consecutive months, the Ford Focus was named the best-selling nameplate in China. The Chinese market’s enthusiasm for our vehicles validates our aggressive $4.9 billion investment to introduce 15 new vehicles, double production capacity, and double our China dealership network by 2015. Read more in the Chongqing case study.

In India, meanwhile, Ford sold 87,492 domestic wholesale units in 2012. We continue to increase our presence in India, where we operate a vehicle and engine manufacturing facility in Chennai. We are investing $1 billion for our second integrated manufacturing facility, which includes an assembly plant and an engine plant, in Sanand, and are committed to bringing the best of global products and services to the country. In India, we will more than double the number of dealerships from 119 in 2010 to 300 in 2015.

We are investing more than $6.7 billion⁴ in Asia Pacific and currently employ some 22,000 people in our wholly owned and consolidated joint ventures in the region. Our operations include the following:

Joint Venture Facilities

• Our joint venture CAF already operates two passenger car vehicle assembly plants in Chongqing. CAF has two more assembly plants under construction – Chongqing 3 and Hangzhou – and two powertrain plants under construction, including an engine and transmission plant.

• Our commercial vehicle joint venture, Jiangling Motors Corp., is investing $300 million for an assembly plant in Nanchang, China, for Ford and JMC branded vehicles.

Ford-Owned Facilities

• We broke ground in 2011 on a $1 billion integrated manufacturing facility in Sanand, Gujarat, India. The new facility, which includes an assembly plant and an engine plant, will create 5,000 jobs and will be able to initially produce 240,000 vehicles and 270,000 engines per year, starting in 2015.

• In Thailand, we have invested $450 million in a new plant in Rayong province that builds the Focus for Thailand and other Asian markets.

• In early 2012, we announced we will be investing $142 million to build a new compact SUV – the EcoSport – at our plant in Chennai, India. We expect to roll out the first EcoSports in mid-2013 for Indian consumers.

• We have invested $72 million to increase production capacity at our Chennai engine plant.