Ford Otomotiv Sanayi AS (Ford Otosan), a Turkey-based joint venture operated by Ford Motor Co. (F) and its Turkish partner, Koç Holding, revised upward its sales forecast to 351,000 units from 345,000 units for 2011. The forecasted sales reflect a 16% increase from the sales in 2010.
The guidance included domestic sales of 135,000 units, up from the previous forecast of 131,000 units and 126,000 units in 2010, and exports of 216,000 units, up from the prior guidance of 214,000 units and 177,000 units in 2010.
Kocaeli, Turkey-based Ford Otosan plans to produce 292,000 units in 2011, up 21% from 242,000 units in 2010. The joint venture will invest $300 million this year compared with $56 million a year ago.
Last month, Ford Otosan announced that it will enhance capacity to 400,000 units per year at its Kocaeli plant. In April, the joint venture announced investment of €205 million ($290 million) at the plant that will help manufacture a new van model.
Ford Otosan started production in 1965, with each company holding a 41% share in the venture. It operates four facilities in Turkey, two in Kocaeli, one in Eskisehir and one in Istanbul.
The joint venture has a share of about 15% in the domestic market. Its share in the passenger car market is roughly 10%, while in the light commercial vehicle segment is nearly 20%.
Turkey is one of the most important markets for automobile in Europe. It occupies the sixth position in the continent in terms of automobile production. The country’s light vehicles market expects to grow 11% to 882,000 units this year from 792,000 in 2010.
As a result, it attracted the attention of many global automakers, including Toyota Motor Corp. (TM), Honda Motor Co. (HMC), Opel, Hyundai, Mercedes-Benz and MAN AG. The companies mostly produce vans, buses and trucks in the country.
Recently, Ford revealed that it expects global sales to expand by 50% to 8 million vehicles by 2015 given the potential growth in Asia, mainly China and India; and rising demand for small cars. The automaker anticipates small cars to account for 55% of the total sales by 2020 compared with 48% presently.
The Zacks #3 Rank (Hold) company posted a roaring 48% rise in profit to $2.61 billion in the first quarter of 2011 from $1.76 billion in the same quarter of 2010. On earnings per share basis, profits rose 35% to 62 cents per share from 46 cents per share a year ago, thereby topping the Zacks Consensus Estimate by 12 cents per share.
