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Ex-Honda man to boost Ford car sales in Japan 

TODD ZAUN  
Eiji Iwakuni, a former Honda executive and now the boss of Ford Motor Co.'s Japanese unit, faces one of the toughest marketing jobs in the car business.

Ford has tremendous clout as the world's second-largest auto maker. But, here, in the world's second-largest auto market, Ford's cars sell in tiny numbers. In a sign of how obscure the brand is in Japan, Mr Iwakuni says that the recent US controversy over accidents involving Ford Explorer vehicles, equipped with Firestone tyres, may even help Ford here by making the Explorer better known.

``For brand awareness, the problem has had the effect of an advertisement,'' he says.

That Mr Iwakuni can find hope in the tyre crisis underscores Ford's unenviable situation in Japan. The US car maker's sales here have fallen in the past four years and now accounts for just 0.4 per cent of the Japanese vehicle market.

Mr Iwakuni promises to change that. He has ambitious plan to overhaul Ford's lineup, jazz up its dealerships and spread his sales fervour to a dispirited work force. He says his ultimate goal is to revamp Ford's brand image in Japan to give an air of prestige to the blue-and-white oval badge.

Mr Iwakuni says his effort is a top priority for Ford, because Japan is the linchpin of the promising Asian market. ``If Ford doesn't succeed in Japan, it can't succeed in Asia and won't be a world leader,'' he says.

But it remains to be seen if Mr Iwakuni's Detroit bosses share that view. Ford has focused much of its energy in Japan on reviving Mazda Motor Corp., in which it holds a 33.4 per cent stake, but in doing so has largely neglected its own brand. Ford's sales in Japan peaked at 86,726 vehicles in 1990, but 90 per cent of those cars were Mazda-manufactured vehicles with Ford name-plates. Worried that dressing up Mazdas as Fords was creating an identity crisis for both companies, Ford stopped offering many of the models, and Ford Japan's sales sank to 16,551 vehicles last year.

But dropping Mazda-made cars is just part of the explanation for the feeble performance. Dealers say Ford is repeating the past mistakes of American auto makers in Japan by failing to tailor its models to the tastes of Japanese drivers. One example is the Ka, a subcompact manufactured in Spain that Ford began exporting to Japan last year. The Ka has the kind of fun, quirky look that appeals to buyers here, but dealers complain that the car is available only with a manual transmission, while most Japanese prefer automatics. Sales of the Ka have stalled at less than 200 vehicles a month.

``It's a cute car but we can't sell it,'' says Mr Motoo Matsumata, who runs a Ford franchise and a network of Toyota dealerships northeast of Tokyo.

Another problem, dealers say, is that Ford spands so little on advertising in japan that its cars are virtually unknown.

Ford headquarters counters that it doesn't make sense to spend a lot of money in Japan until volume piks up. ``We need to balance our cost with our expectations,'' says a Ford spokesman in Detroit.

Ford didn't always have such troubles. The company was the first to manufacture cars in Asia and was the leading auto makers in Japan before World War II. But the company was expelled on the eve of the war and by the time it returned, Toyota Motor Corp, Honda Motor Co. and half a dozen other domestic car makers had grown into fierce competitors.

Ford's history here means most Japanese known the company, but it has a reputation for making big and cluky vehices. Ford had a minihit with the Taurus sedan in the mid-1990s but dropped it when sales fell.

Mr Iwakuni took charge of Ford Japan 18 months ago after a 32-year career at Honda, where he became known for his ability to revamp ailing dealerships.

To improve Ford's image, Mr Iwakuni is closing decaying and unprofitable dealerships, sprucing up showrooms and telling sales-people to focus on meeting customers. He hopes that with shinier showrooms and better service he can give Ford a refined imported-car image similar to htat of Audi or Volvo, albeit lower on the price and prestige scales.

He points to the Ford Koga dealership, just outside Tokyo, as an early success. The dealership is on pace to triple its 1998 sales, says Kayomi Shimizu, the 48-year-old manager.

Ms Shimizu's salespeople call on car shoppers at their homes and handle customer complaints personally. They are also studhi g English, hoping to tap into one group of customers that known Ford's vehicles well - American expatriates living in Japan.

But the Koga dealership is an exception. Ford sold just 1,000 Explorers in Japan last year and 800 Mustangs. Even its best-selling Freda, a reworked Mazda miniva, sold just 2,500 units. To really give the Ford name new appeal here, dealers say Ford needs new models, especially a replacement for the Taurus as an entry-level sedan.

Ford plans to introduce four new or redesigned vehicles in Japan by the end of next year. But Mr Iwakuni doesn't seem convinced his bosses are ready to pony up the money for the advertising and design tweaks that may be needed.

``I understand that if you don't have volume you can't spend a lot of money,'' Mr Iwakuni says. ``But looing at it from Japan, if products don't match customers' tastes, we can't expect to generate much volume. If anyone has a trick to solve this problem, please teach it to me.''

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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