Ford Uses Aggressive Marketing Approach in Thailand --- Focus on Financing Strategies Is Key Reason for Increased Market Share
After a 20-year absence, Ford Motor Co. is back in Thailand. Considering the country's economy, this isn't the perfect time to plunge back in. But, armed with some aggressive -- and risky-financing strategies, Ford is gaining strength in a difficult market.</br></br>The world's No. 2 auto maker, which left Thailand in the '70s to focus on the U.S. market, returned about two years ago -- before the Asian economic crisis hit -- and now is seeking to become a market leader committed to offering auto loans to Thais when rivals can't or won't. Credit for auto loans is tight and sales have plummeted 75% since a currency devaluation walloped the country's economy last year.</br></br>Ford is raising the stakes for itself by offering U.S.-style come-ons, including 0% interest. It's a big gamble, considering that the government has closed dozens of finance companies because of debt problems. Industry experts warn that Ford risks high default and repossession rates and a price war as wounded competitors match low interest rates.</br></br>But "price and financing are the main reasons people are buying right now," not brands or resale value, says Siriluk Aroondechachai, who took over her father's Ford dealership two years ago.</br></br>Ms. Siriluk, through Ford's finance subsidiary, Primus Leasing Co., can offer a menu of financing options, including once-yearly payments for Thai farmers that coincide with sugar-cane harvests in northeastern Thailand, where she runs her dealership. During March, Ms. Siriluk, a 25-year-old with a degree in economics from Baylor University in Texas, sold 60 trucks in Thailand-enough to make some U.S. dealers envious.