Eddie Murphy (Ford) is upbeat about the coming year, expecting modest growth in car sales for 2003, up from 155,000 to 160,000.
In relation to Ford, "we expect to end this year with a market share of 11.2 per cent. Thanks to incremental product launches we expect our share to grow to about 12 per cent in 2003."
Ford worldwide is in the midst of a struggle to get its figures back in the black after reporting large losses in recent years and last year's boardroom reshuffle, which saw Jack Nasser ousted and the return of family member Bill Ford to the helm.
"Personally I'm delighted to see a Ford name back in control of what has always been essentially a family-orientated business," says Murphy. "I think he is now working in the right direction, restoring dealer and employee morale."
As to the cut-throat competition in the US, Murphy says the tactics used, including zero per cent finance, reflect fears of a slump in the most important market of about two million units post-September 11th. "When you expect to sell 17 million units and see those expectations fall to 15 million, you have to do something to preserve your market and keep the manufacturing plants operational."
Here at home, he is disappointed with press comments on the Fusion, but says customer and dealer reaction has been positive and feedback, albeit anecdotal, is offering some very good signals for the model.
The Fusion is aimed to fill the niche between the Fiesta and the Focus and while Murphy sympathises with anyone, dealers and distributors, having to stock different products as a result of the servicing of these different market niches, "at the end of the day the marketplace will dictate supply and, if you want to compete, you must offer the customers the variety and choice they desire."
Murphy predicts that while the small family segment, which is dominated by the Ford Focus, will remain the largest with around 35 per cent of the market, increases will be seen in the small car, or B segment.
"A large proportion of the cars bought in 2000 were small cars and, as the finance comes up on these, customers will be making decisions on getting a new car or holding on to them."
What of the forthcoming budget? He will be bitterly disappointed if VRT or VAT were increased, as the "motor industry shoulders a disproportionate amount of taxation."
Eddie Murphy is chairman and managing director of Ford Ireland