Ford Lio Ho to Lead Asian Production of C1 World-Car Model

Ford Lio Ho Motor Co., a Taiwan subsidiary of Ford of the U.S., recently claimed that it would lead other Asian affiliates in the production of a Ford world-car model. The new model was redesigned at Ford Lio Ho's R&D center in Taiwan based on a chassis shared with Ford's latest Focus compact sedan.

Ford Lio Ho will be Ford's first world-car production base in Asia. From 2005, Ford Lio Ho says, the world-car model will be assembled in the Philippines, mainland China and South Africa with exterior body parts supplied by Ford Lio Ho.

Industry sources say that the move indicates that Ford Lio Ho is playing an increasingly important role in Ford's Asian operations, both in car model development, lead production and parts supply.

Many other automakers in Taiwan have been chosen by their foreign technical partners or parent groups as vital strategic partners in tapping the mainland China market. With the advantages of a shared language and culture with the mainland, Taiwan automakers have helped General Motors (GM), Ford, DaimlerChrysler, Toyota and Renault to successfully enter the mainland market. The local strategic partners have set up auto-production joint ventures or sent experts to help set up plant and production systems across the Taiwan Strait.

Ford's American headquarters plans to let Ford Lio Ho and Ford China produce the same car models to cut costs and meet regional consumer tastes.

As a strategic partner in Ford's Asian operations, Ford Lio Ho has been strengthening its design and manufacturing capability to support Ford's business in China. Ford Lio Ho began sending technical experts to Jiangling Motors Co., Ltd. (Ford's light-truck venture in Jiangxi Province, Chain) several years ago, and dispatched a group of about 30 experienced manufacturing consultants to support Sichuan-based Changan Ford Automobile Corp.'s product development, production and sales two years ago.

Ford Lio Ho's technical center in Taiwan also supported the development of the Mondeo Metrostar medium sedan, which has been selling well in the mainland market since entering production at Changan Ford in February this year.

A senior R&D official at Ford Lio Ho says his company's technical center sent two groups to Ford's new-car development centers in Europe and the U.S., respectively, to take part in the development of Ford's first world-car model, the C1.

The C1 is developed on the platform of Ford's popular Focus sub-compact car model and the new model is expected to be produced simultaneously in the U.S., Europe and some Asia-Pacific nations.

According to Ford Lio Ho, the C1 will be debuted at an automobile show in Beijing in June and produced by Ford Lio Ho in Taiwan in the fourth quarter this year. The local subsidiary will also be responsible for supplying most of the exterior body parts for the C1 produced in some other nations, such as the Philippines and South Africa. Ford Lio Ho says that it expects to export about 50,000 sets of C1 body parts next year.