Dubai: Until recently, top automotive industry executives only had to dwell on what the collective effect of weak demand would have on their new supply. Now, they need to have a good understanding of geo-politics and whatever impact shifting realities would have on new car sales.

Ford has seen a 40 per cent drop in volumes in Russia after the turmoil set off by that country’s stand-off with Ukraine. Despite that, the US auto giant still managed to impress in the rest of Europe, as that territory, or some areas within it, feed into demand after years of consumers putting off purchases.

“Despite the Russia crisis, we have a slow steady improvement in Europe overall in terms of the economy and the number of cars we sell,” said Barb Samardzich, Vice-President and Chief Operating Officer at Ford for Europe. “So far this year, Ford has sold 700,800 vehicles in Europe, more than half of which are new or significantly refreshed since end-2012. Market share was 7.9 per cent for both periods.

“Europe is profitable — we are on track. European sourcing is helping us, especially for small and medium-sized cars. The remainder of the year is harder, especially with the summer/Xmas holidays.”

While Europe, except for Russia, offers a respite, Ford is getting ready to make that big push into Africa. It was late last year that the carmaker announced changes in its reporting structure that allowed the Middle East and Africa territory to have more say at the head table. This year Ford expects Middle East volumes to surpass 85,000 units.

Young business unit

“Ford is bringing 25 new vehicles to Middle East and Africa and 17 new vehicles to Sub-Saharan Africa by 2016,” said Jim Benintende, President of Ford Middle East and Africa. “We are a very young business unit and currently looking at investment opportunities throughout Africa, mainly in South Africa, Morocco and Algeria. These could be in distribution, parts supply or manufacturing.”

A sales office in Casablanca and a purchasing office in Tangier are to open shortly. According to Benintende, the best growth potential in Africa would come from South Africa and Algeria. In the Middle East, Saudi Arabia and the UAE will remain the top markets. (In the UAE, Ford is in third spot in terms of market share.)

“Ford has invested half-a-billion dollars in South Africa since 2010 (to realise production of the Ford Ranger truck, which is exported to 150 markets, and of the Duratorq diesel engine),” said Benintende. “Despite market challenges, Ford Motor Company of Southern Africa (FMCSA) set a new sales record in August. For a second consecutive month, Ford sales exceeded 6,000 vehicles, giving the brand its second-highest ever market share of 12.9 per cent.”