Ford Focus

The history Ford Focus in Russia

1999: The decision on production of a car in Russia is made

The decision that Ford will manufacture Focus in Russia was accepted corporation in 1999. By then the company already had negative experience of assembly of the minibuses Transit in Belarus in the territory of the CIS — the joint venture had to be closed because of low demand after crisis of 1998.

The management of Ford decided to build the plant in Vsevolozhsk of the Leningrad Region, is closer to ports and the western border from where it was going to deliver at the first stage all component parts.

2002: The end of construction of the plant in Vsevolzhsk

In July, 2002 the 25 thousand machines plant in a year was ready. It cost corporation 150 million dollars. One week prior to commercial start of the pipeline Ford brought together journalists, and the sales director of that time in Russia Sergey Bogdanov announced long-awaited digit: Focus price in the Russian market in a basic complete set will begin with 10 thousand 900 dollars (about 345 thousand rubles). It was 2-3 thousand dollars less than the price of the closest competitors — Skoda Octavia, Renault Megane and Toyota Corolla^[1].

The 1.6 l engine and the power steering were included in the basic package of Focus. The rest was offered to be ordered for extra money.

In the market only the sales plan was surprising. Ford promised to bring the plant to design capacity in two-three years though for 2001, according to own data, the company sold 2 thousand 335 cars of all models in Russia. Then 10 thousand dollars were considered as psychological border of the price, after it demand promptly fell, the head of one of dealers of Ford who sells cars of this brand from the 1990th remembers.

At that time it was the best offer — local assembly plus aggressive price policy instantly made Focus the favourite of the market, Mikhail Podorozhansky, the Chief Editor of the Avtorevyu newspaper remembers. The massive advertizing campaign emphasizing adaptation of the machine to the Russian market together with soft loans on its purchase according to the Ford Credit program made the case — dealers were overloaded, for the first time in the history in the market there was a deficit of the machine with a foreign label on a cowl.

2003: Demand exceeds opportunities by 4 times

Record on Focus was kept at least for the half a year ahead, one of dealers remembers. Less than in half a year after start of the plant Henrik Nenzen who held then a position of the president of Ford across Russia, said that the number of requests for cars four times exceeded expectations and possibilities of production. In the spring of 2003 the company management decided to enter a second shift at the plant though according to the plan was going to do it not earlier than the beginning of 2004.

2005: Reduction of price of basic model, increase in production

To the middle of 2005 when came it is time to update generation of Focus, the plant already supplied the Russian market with scarce machines round the clock and without days off, the manager working then in the company says. The company prepared for entry into the market of the second generation of the car to buyers one more surprise: the basic model is 2000 dollars cheaper, than in the previous generation. However, the volume of the most available engine decreased from 1.6 to 1.4 l, and the price of a basic complete set of the first Focus grew to 14 thousand dollars by then So at a rate of that time the price of machines of the second generation began with 370-400 thousand rubles.

Ford could play with the price, cost value of the machine at the exit from the plant was about 6 thousand dollars, company executives called such indicator at meetings with officials of the Leningrad Region, remembers one of them. Cost value really was about this digit, confirms the former employee of Ford. In the same 2005 of Ford decided to increase capacity of plant to 40 thousand machines a year, and since January, 2006 — up to 60 thousand.

2006: Import of machines from Germany and Spain

Already at the beginning of 2006, without being in time behind growth of the market, Ford delivered about 10 thousand Focus from Germany and Spain as could not cover with own forces in Russia all demand for the machines — queue lasted more than for half a year.

The situation was favorable, Ford skimmed off the cream from the market growing at mad rates, Podorozhansky from Avtorevyu says. Demand generated deficit of the cheapest complete sets of Focus with l engines 1.4 and 1.6, and buyers were offered to purchase machines with engines of 1.8-2 l at the price of 15-20 thousand dollars (400-540 thousand rubles at the rate of for July, 2006). It was necessary to wait for cheaper complete sets for months, their share in production did not exceed several percent, he says.

2008: Start of the second generation, hour of triumph

Hour of triumph for the company there was 2008. By then the plant extended up to 125 thousand machines a year, in February it began to collect the updated model of the second generation, and on the pipeline there was the second model — Mondeo. Focus well was on sale also after crisis of 2008: in February, 2009 its sales grew by 3% in comparison with the same month 2008 — up to 6 thousand 124 machines, archive statistics of Association of European Businesses demonstrates.

2011: Start of third generation

Third generation of Focus appeared in the market in 2011 in other competitive environment, it became more difficult to sell the car though the reputation of model continued to advance it, the top manager of one more dealer of Ford says. By this time the idea of the "national" foreign car the Logan model, and General Motors which rushed after Ford on the budget Aveo and Lacetti of assembly of Kaliningrad Avtotor intercepted Renault, released at the Moscow plant "Avtoframos" absolutely inexpensive (it is lower than 10 thousand dollars).

To build up in the market from "budget" competitors, the management of Ford decided to raise a price bar and to announce that the machine is in "a high mid-price segment", tells one of former employees of the company. Third generation of Focus already differed from the first two in both design, and a stuffing, he says.

In a basic complete set there were more options, and the starting price grew approximately by 500 dollars in comparison with the previous generation, but machines in a basic complete set in the market were almost not: versions worth 16-18 thousand dollars were generally offered, the former manager of Ford told. This decision was made by the Russian division on the basis of the sales plan which was lowered from Detroit, he explains.

Such acceptance — transfer of goods to higher price niche for detuning from competitors — is often applied in consumer market, Samvel Avetisyan, the head of the department of marketing and branding of the Moscow financial and industrial university says. As a rule, it is advantageous strategy, it is much more perspective, than decrease in a price level, the expert says.

However in a case with Focus it did not work. The price of the machine of third generation was slightly above that which was expected by buyers. They saw that they can receive the car of other brand in a comparable complete set, but for one hundred thousands of rubles is cheaper, Podorozhansky notes. In 2010-2012 Focus held the account of the acquired reputation, top managers of two dealers of the brand say, but in 2013 sales went down.

2014: Collapse of sales

2014 became the most critical for model. In May of sale to one of the first "national" foreign cars — Fords Focus — failed for 68% in comparison with May, 2013. This month dealers sold only 1 thousand 904 cars of this brand. It is less, than in May, 2009, heavy for the industry, when car market fell almost upon 60% (then sold 3 thousand 418 new Focus).

The ratio price/quality suffered because of devaluation of ruble — the company supplies still most part of parts for Focus from abroad. On average since the beginning of year Focus rose in price for 10%, both dealers — for a "national" segment estimate it a bit too much, at the price the machine began to catch up with traditionally expensive Japanese cars.

The price of machines begins from 615 thousand rubles now and comes to an end on 893 thousand rubles according to the official price list. Toyota Corolla imported to Russia is 50 thousand rubles more expensive, Volkswagen Golf — in some complete sets "leaves" from Focus for only several tens of thousands of rubles.

Focus lost image of "the national family car" and the traditional buyer, the representative of Ford-Sollers joint venture (since October, 2011 the plant in the Leningrad Region is entered to the joint venture) agrees, and devaluation of ruble became not the last reason for this purpose.

The company takes measures for recovery of sales of the brand, he says. In particular, on a special offer the prices of the machine were reduced up to 599-823 thousand rubles. The new advertizing campaign designed to return interest in model is planned, the representative of Ford-Sollers assures. Make it it will be difficult: in 2002 Focus had several competitors in the market, and in the 2014th it is tens of actively advanced models.

Safety of Ford Focus

2020: Shutdown of the core banking system and error output on the meter panel: cracking of Ford Focus

In the middle of April, 2020 British magazine Which? accused producers of two most popular cars in Europe — Volkswagen and Ford - that they carelessly treat cyber security.

According to journalistic investigation, the Ford Focus Titanium Automatic 1.0L and Volkswagen Polo SEL TSI Manual 1.0L models have a set of vulnerabilities. Working in cooperation with cybersecurity specialists of Context Information Security, researchers could crack the information and entertaining Volkswagen system and learned personal data of owners, including phone numbers, the saved addresses and the history of navigation. Moreover, vulnerability was detected also in that system of the car which includes and disconnects the ABS system which performs the major function for security on slippery roads.

British magazine Which? accused producers of two most popular cars in Europe - Volkswagen and Ford - that they carelessly treat cyber security

In Volkswagen claim that the information and entertaining system of the car is separated from other important systems and cannot influence them, however promised to consider results of the research conducted by journalists.

As for the Ford car, researchers could crack pressure control system in buses of the car (TPM) that allowed them to intercept and forge messages from sensors. If hackers report the on-board computer of the car as if with the blown-off buses everything is all right, it can quite endanger passengers. Also it is possible to bring nonexistent errors in work of the automobile systems to the meter panel. Besides, after cracking researchers could monitor all movements of the car. It was succeeded to crack a security system with it with the help of "the cheap notebook and the gadget worth 25 pounds sterling" from Amazon.

Ford answered that TPMS have very short transmission range. In other words, the hacker should not only be near the car during cracking, but also remain a row throughout all fraud with sensors. This technology is not unique for Ford, and, according to car maker, it has no "known industry problems of quality and security".

Researchers recommend to delete personal data from the information and entertaining systems at sale and also to cancel access to the application not to allow the car and phone to exchange data which are easy for intercepting.^[2]

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