Ikon to be a precursor of things to come, says Nasser

For Jacques Nasser, the Lebanese-born Australian who heads the world''s second biggest car company, Ford Motor, India holds a special position in his scheme of things. In the country to formally hand over Ford Ikon, the company’s latest offering, to the first buyer of this model, Mr Nasser said Ford wants to make India a centre for design and engineering.

He says Ford expects to export $200 million worth of manufactured components from India every year. The basis of this plan is, of course, the fact that India is one of the large growing markets in the Asia-Pacific region. But, besides tapping the Indian market, Mr Nasser would like to harness India''s "brainpower in areas like software and accounting".

At a function in Chennai, where he handed over the keys of the first Ikon to India Cements’ managing director N. Srinivasan, Mr Nasser said he expects India to be a competitive market in the next century. However, he said the Indian automotive industry is way behind the world in terms of competitiveness in manufacturing -- with respect to economies of scale, supply chain and workforce training.

Mr Nasser says he doesn''t like the proposal to import used cars. He says the Indian government and consumers must choose between junk material and a product of true engineering capability. He points out that in New Zealand, which allowed the import of used cars, the local car industry has ceased to exist.

According to Mr Nasser, Ford will focus totally on the Ikon model in India, and not launch a. smaller car. Once the Ikon fulfills customers’ expectations, the company may consider adding other vehicles to its production line in the country. As for the Ikon, he says, the car has "exceeded expectations", his as well the company’s.

Ford believes in keeping the costs of new models down. The Ikon has some 70 per cent local content. According to Mr Nasser, Ford is negotiating with Fiat at the global level for sharing investments in operations in various countries, including India."

Mr Nasser foresees a much larger role for the Internet and e-com-based trading in the automotive sector. He says about 40 per cent of Ford’s customers in the US check out information on the Internet before buying a vehicle. In five years, the company expects, this percentage will double to 80 per cent. He also expects the Internet to become crucial in the manufacturing process, harnessing technology to deliver products in a more competitive manner.

Talking at the function, Philip G. Spender, managing director of Ford India, said the Ikon is part of Ford''s brand building effort. He expects some 20,000 Ikons will be sold in the next one year.