Tomahawk, WI 9/30/2013 (BasicsMedia) – The first time Ford Motor Company (NYSE:F) opened its doors to produce the first vehicles from its production line was in the U.S. back in 1913. It’s now a hundred years later and the company has seen the production of its vehicles taken to new lands in Europe and Asia, especially China. All along, Ford has always known that it’s Europe manufacturing plants produce more cars than their counterparts in China. But this seems to have changed with the announcement that the company made close to $15 billion from its Asian production plants.

 Ford’s Car Production in China to Exceed its production in North America

 The company has even stated that it expects to produce more cars in Asia than it does in North America at least by 2015, which is only two years away. I wouldn’t put it past Ford to succeed in this venture seeing that its latest figures already indicate that the company is making more cars in Asia than it does in Europe for the first time ever. It has been investing in Asia quite a lot and seems poised to start enjoying the many benefits of making such a move. The fact that creation of wealth is picking up rapidly in Asia than in North America is helping matters a great deal.

Ford enjoys a lot of goodwill from the American customers. Its Model T was the first car produced for millions of users, or what we love calling the mass market. China continues to see an exponential growth in its middle class. The huge amounts of money this middle class in countries such as China and the rest of Asia, means many are able to afford their first set of cars. This is the big market which serves Ford’s interest quite well and is helping the company to see a major surge in its revenue, sales, and profitability.

 Ford to Benefit from Increased Middle Class in Asia

 The Chinese operations which F currently owns have been put at $15 billion by Morgan Stanley. This single market is equivalent to a fifth of F’s stock market value. The figure from the Chinese operations make F’s stock market value much larger than those of companies such as Mazda and

Fiat. Chinese market is increasing in value to Ford, hence its decision to increase its investments therein. This was not always the situation. Ford struggled a lot in its early days in China. It was a late entrant in the Chinese market, where it came in after General Motors and Volkswagen.

 Ford still has the potential of performing much better that it has managed thus far. The company only has a 3.3% share of the market, compared to 2.3% back in 2006. It has increased its market share in the Asia-Pacific region, and I believe it can still do more to improve this. The company can still manage a 6% presence in this market in the next five years. This increase would primarily be driven by the huge demand that exists for sport utility vehicles in the region, plus the increasing presence of first time vehicle buyers in China and other parts of this region.

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