ALL OF WARC
ALL OF WARC
Pinpoint the case evidence you need – search by industry, objective, media and more.
Case summaries showcasing leading brands achieving key marketing objectives.
Creative TV and video executions from the most innovative and market-leading brands.
Browse campaigns from the world's leading advertising and marketing effectiveness awards.
The latest from our annual case study competitions.
Rankings of the world's most effective agencies, advertisers and brands.
Industry Topic Pages
Shortcuts to the latest industry-focused information and insight.
Apparel & Accessories
Government & Non-profit
Household & Domestic
Media & Entertainment
Pharmaceutical & Health
Toiletries & Cosmetics
Travel & Tourism
Subject Topic Pages
Shortcuts to the latest information
and insight by subject area.
Overviews of leading brand owners, and guides to key issues and tasks.
Browse all articles, papers and case studies by subject.
Latest reports from Warc and trusted partners offering unique insights into current trends.
The driving forces behind consumer behaviour.
New developments for industries and sectors.
Strategic insight for the marketing of brands.
Media & Tech
Latest innovations in media and technology.
Insight and intelligence for countries and regions.
Daily coverage of key developments for marketers worldwide.
The Warc Blog
Insights, opinions and fresh new thinking from our team of bloggers around the world.
Advertising expenditure by medium in 80 markets, plus forecasts and media costs for key countries.
Key briefings from major conferences and events in the US, Europe and Asia Pacific.
Plan your schedule of must-attend events with our global calendar of conferences.
Review your contact details and public profile.
Choose and review which topics to follow.
Choose and review which brands to follow.
Your Email Updates
Select and manage the emails you receive.
Contact your dedicated Client Services Manager.
Put our research team at your service.
Today's Top Stories
Today's Top Stories
Wal-mart gets personal with shoppers
Euro online adspend up 11.5%
Category leadership vital in Indonesia
Mobile ad metrics questioned
Electronic Arts is most social brand
Indian attitudes to luxury alter
7 Day Round-Up
The Warc Blog
Ford hit by high costs in Germany
BERLIN: US automaker Ford is facing fierce competition from rival brands in the major European car markets.
Ford suffered a
second quarter operating loss
of $404m in Germany following a sales decline of 9.9% while Korean car firm Hyundai-Kia posted 12% sales growth, Bloomberg reports.
This divergence in sales performance suggests broader challenges for established automakers in Europe, as the two companies are being increasingly differentiated by their operating costs.
Hyundai-Kia, which began manufacturing in Europe in 2005, has taken advantage of lower costs in Eastern Europe and has plants in Slovakia, Turkey and the Czech Republic.
By contrast Ford, which opened its first European plant in 1911, is sited mostly in Western Europe with facilities in Germany, Belgium, Spain and the UK.
Operational costs differ widely, with Hyundai able to produce a compact car for approximately €207 at its Czech Republic factory. In Ford's German plant in Saarlouis, it costs the company about €480 for each vehicle.
As a result Hyundai is able to significantly undercut the American company on price, thereby appealing to recession-hit European consumers.
Ron Harbour, a partner at New York-based consulting company Oliver Wyman, also noted that Hyundai enjoys greater operational efficiency due to its late entry. "[Ford is] dealing with the legacy of what was built over 100 years [ago]," he added.
Meantime, the marque must weigh the potential risks and benefits of trying to compete with companies like Hyundai by moving production to cheaper facilities in Eastern Europe.
There is a risk of further sales decline if Ford stops manufacturing in Germany.
"If I pull out of a country, do I lose my brand image there?" said Harbour. "If I save a billion, do I lose a billion in revenue in that country? There is no magic formula."
Company spokesman Mark Truby, of Ford, admitted that the company's factories are running below capacity and said: "We will continue to match production to demand and further raise our capacity utilisation rate."
Data sourced from Bloomberg; additional content by Warc staff, 29 August 2012
Automakers adapt strategies for India
Programmatic ad drive works for Ford
Mobile adspend surges in Germany
Content & Partners
Terms & Conditions
© 2013 Copyright and Database Rights owned by Warc