Honda's misfortune and Chevy versus Ford

As well as being the auto-maker that was hardest-hit by the earthquake and tsunami in Japan in March, its ill fortune continues with the flood crisis in Thailand.
It is the only auto-maker to have a plant located in Ayutthaya – the province with the most severe flooding this year.
Most auto plants are located in the eastern part of the country, in Samut Prakan, Chachoengsao and Rayong. But Honda chose Ayutthaya, which is north of Bangkok, and I salute its decision because this is a location where it is easy to find workers and delivery of vehicles to major markets in Bangkok, the central region and the Northeast is convenient. The only weakness is transporting vehicles for export, because they depart from Laem Chabang in Chon Buri province.
The flooding of Honda’s Rojana plant is very bad luck for Honda, and I hope that every Honda employee will help the company to recover in the shortest possible time.
Meanwhile, last week American auto-maker Chevrolet launched its new Colorado pickup, and the event was held in grand style – as you might expect from an American company. The American ambassador to Thailand presided over the launch, which had a “cornfield” theme, with the Chevy pickups being driven out.
Chevrolet handed out pha kao ma (traditional loincloths) as souvenirs to those who attended the event. They were made by villagers in Chainat’s Sapphaya district, and I’d like to thank Chevrolet for helping the locals, because Chainat is my birthplace.
The Colorado comes with two engine sizes – 2,500cc and 2,800cc. There is a choice between 6-speed manual and 5-speed automatic transmissions.
In the Thai market, the arch rival of the Colorado is the Ford Ranger. The companies position the trucks close to each other in the market, and both boast that they are American auto-makers with more than 100 years of history.
In the past, sales of Chevrolet and Ford were strong in different areas. Chevrolet started off marketing an MPV called the Zafira in Thailand, and did pretty well since it had no competition. But it stumbled with the Optra sedan and when the first-generation Colorado was added to the line-up, neither of them sold well. Even with the introduction of the Aveo subcompact, the situation didn’t improve much.
Chevrolet enjoyed an important sales boost when fuel prices rose and it introduced a CNG version of the Optra, which came with full factory warranty. The Optra CNG dramatically increased sales for Chevrolet and when the Captiva SUV was introduced, it maintained the momentum, challenging market leaders like the Honda CR-V.
Chevrolet introduced the Cruze late last year, and despite it being a modern-looking sedan with good performance, not many are seen on Thai roads. Marketing spending in the Thai market may be inadequate, as Chevrolet has concentrated on regional marketing, such as advertising on the AXN channel.
Meanwhile, Ford re-entered the Thai market with the Ranger, with the “Built Tough” slogan. Then it launched the Laser Tierra, and sales weren’t good. This is possibly because consumers weren’t sure whether it was an American or Japanese car. Fortunately, the Escape SUV has done pretty well in the Thai market, although the engine size has changed several times.
Last year, Ford introduced the Fiesta in Thailand and it was able to satisfy dealers around the country pretty well. Sales reached 20,000 units in a short time, and it even helped to resurrect the near-dead Focus.
In the near future, Ford will launch its new Ranger pickup. There will be 2,500cc petrol, 2,200cc diesel and 3,200cc diesel engines to choose from, along with 6-speed automatic and manual transmission choices.
Launching new products at virtually the same time and in the same market position means that the success of Chevrolet and Ford – both with a long history and many dealers – will depend on how well they understand the behaviour of Thai consumers and the marketing techniques used to reach customers, including communications and choosing the right channels. The brand that is able to adapt more Thai elements into their marketing will gain the advantage in this all-American battle.