Ford Otosan Seeking Investment to Finance Commercial Truck Growth

[kscarbel2]

May 5, 2014

The European Bank for Reconstruction and Development (EBRD) is considering US$191 million (Euro 140 million) long-term loan to Ford Otomotiv Sanayi A.S. (Ford Otosan) to finance the development of new Ford Ecotorq commercial truck engines, modernization of manufacturing processes, modernization of the company’s Ford Cargo commercial truck range, development of a new Ford Cargo model truck and the increase of Ford truck production capacity at its Inonu plant in Eskişehir, Turkey.

Ford Otomotiv Sanayi A.S. (Ford Otosan) is incorporated in Turkey and operates as a joint venture between Ford Motor Company and Koç Holding. Ford and Koc each hold a 41 percent equity stake, and the remaining shares are listed on the Istanbul Stock Exchange.

Koç Holding is the leading industrial conglomerate in Turkey engaged in the automotive, energy, durable goods and banking sectors.

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[james j neiweem]

Sort of looks like that Australian Mack cabover (Renault maybe). I am not sure if they still make it

[Red Horse]

Perhaps some of that development money will filter down to a US EPA compliant Ecotorque 6 cyl of around 9 or 10 liters? After all- "One Ford"??

[kscarbel]

Perhaps some of that development money will filter down to a US EPA compliant Ecotorque 6 cyl of around 9 or 10 liters? After all- "One Ford"??

As enthusiastic and capable as Ford heavy truck producer Otosan is, one wonders why Bill Ford isn't giving them more financial support.

Ford Otosan would be the ideal catalyst for getting Ford back into the game, in the global market with a cutting edge European style COE.

U.S. market competition is fierce resulting in reduced profitability. It's only beneficial to truckmakers to a limited extent, in adding to your global volumes. The global market is where the volumes and profits are.

[Red Horse]

As enthusiastic and capable as Ford heavy truck producer Otosan is, one wonders why Bill Ford isn't giving them more financial support.

Ford Otosan would be the ideal catalyst for getting Ford back into the game, in the global market with a cutting edge European style COE.

U.S. market competition is fierce resulting in reduced profitability. It's only beneficial to truckmakers to a limited extent, in adding to your global volumes. The global market is where the volumes and profits are.

Don't ask me where I got this but I thought I read somewhere that Bill wasw in fact one of those who thought it was a mistake bailing out of class 8 in '98. Also I got the impression he was a "fan" of the Otosan partnership. Like I said, if "One Ford" is more than a slogan, perhaps something will come of this. If nothing else these guys at Otosan have to be designing to a very tough standard looking at the terrain /highway network their trucks operate in.

[kscarbel2]

Selling off the all-new HN80 AeroMax/Louisville range, truly cutting edge heavy trucks that had what it took to make Ford a serious player again, was surely one of the company's most poorly calculated business moves.

After building heavy trucks for decades, it was disappointing to see Ford sell its heavy truck division to Freightliner (Daimler) in 1997.

Daimler purchased Ford's technology, tooling, and assembly equipment for the all-new "Louisville" and "AeroMax" models (known as the HN80 series) for an estimated US$200 million. Daimler picked up the enormous investment Ford had in the HN80 program at a bargain price (Ford is said to have invested US$500 million).

Combining Freightliner and Ford’s heavy truck unit gave Daimler nearly 40% of the US truck market.

The real irony was from the HN80’s introduction in 1996 until production ended in Louisville in December 1997, Ford saw strong heavy truck sales.

After Ford agreed to sell its truck unit to Freightliner, though being a lame duck, Sales at Ford's heavy truck unit took off with the cutting edge new HN80. Although Ford had a modest 9% market share in 1996, the HN80 allowed Ford dealers to rally in the first quarter of 1997.

Ford sold 3,777 Class 8 trucks in the first 3 months of 1997, up 8.2% over the first quarter a year before. Ford sales rose 50.2 percent in March 1997, compared to the same month a year before.

Although 1997 first quarter Class 8 sales at 39,102 trucks were off 5.7% from the previous year, Ford's 1997 first quarter Class 8 market share rose to 9.7%, placing Ford ahead of Volvo GM Heavy Truck Corp. which held a 9.1%.