Ford says Ka could build share in global markets

Ford introduced the Ka Concept today in Brazil, calling it the company's first global entrant in the sub-B small car segment.

Ford executives say they want the Ka to help the company's market share grow in developing markets around the world. Ford is counting on the Ka to follow in the footsteps of the EcoSport subcompact crossover, which Ford introduced in 2012 and is already selling in many developing markets.

Speaking to reporters last week in Detroit, Joe Hinrichs, Ford's president of the Americas, said the Ka Concept is "one of the most important product programs in the company in the last few years."

The five-passenger small hatchback is part of a push by the automaker to tap into emerging markets in South America and South Asia, which are expected to help the subcompact segment grow to 6.2 million vehicles globally by 2017.

The market for subcompact vehicles is expected to grow 35 percent between 2012 and 2017, with 44 percent of the global subcompact market coming from South America and South Asia.

Brazil is the third-largest market for Ford, and the company believes that the Ka Concept can help expand its current 9.5 percent market share in the country.

Designed and built in Brazil, the Ka Concept is smaller and less expensive than a Ford Fiesta, but Ford designers tried to give it a premium look while keeping the price point low.

Existing nameplate

The Ka is not a new nameplate. Ford introduced the Ka in Europe in 1996 as a three-door hatchback designed primarily for driving in Europe's compact city centers. The original Ka was built at Ford's Valencia, Spain, plant. The second generation was built in cooperation with Fiat at a factory in Tychy, Poland.

The vehicle introduced today in Brazil is a concept. Ford has not said when the car will go into production or where it might be sold.

Under CEO Alan Mulally's global One Ford product plan, Ford is working to commonize its vehicles around the world on a series of core platforms. In doing so, the carmaker hopes to save money on engineering, purchasing commodities and manufacturing.

Building revenue

Hinrichs last week said revenue in the third quarter for South America was $3 billion, up $500 million from a year ago. The increase primarily reflects favorable net pricing, volume and mix; other profits, offset partially by higher structural costs, driven by local inflation; and higher commodity costs.

Like the EcoSport, the Ka was designed in Brazil and will be built there. Though Ford has not set a price, Hinrichs said it will be less expensive than a Ford Fiesta. The Ka carries Ford's new global design language, which Ford officials believe give their vehicles a premium look.

"It makes it look like a much more expensive vehicle for much less," Ford designer Ehab Kavod said. "It's the smallest car we do, but when you look at it, it exudes premium."