Ford dealership to unveil all-new, brand-defining Focus in April

The new Focus, a key model in the ‘One Ford’ philosophy that has transformed the brand, will make its debut in Malta in early April, Gasan Enterprises Ltd managing director David Gasan told The Times Business.

The Mrieħel-based Ford dealership, the second longest standing in the world outside the US, has placed its order for the long-awaited model.

“It is an important model for the market,” Mr Gasan said. “It is a showcase of what Ford has been up to design-wise.”

Ford turned a corner last year. The only one of the US ‘Big Three’ which did not turn to the government to bail it out of the crisis, Ford raised capital previously held within its structures. It was a move that was viewed very positively by US and global customers and helped the brand build market share.

It also launched the ‘One Ford’ programme, essentially a rethink of Ford’s entire global operation for “an exciting viable Ford delivering profitable growth for all”.

Under the philosophy, Ford’s teams across the world work together more closely while the global business was restructured to operate more profitably,. taking into account current demand and a changing model mix with accelerated development of new products.

Mr Gasan explained that under ‘One Ford’, 80 per cent of the new Focus will be exactly the same across the global market, a move that will streamline production costs and encourage better pricing for customers.

“The European team has been at the forefront of the global strategy and the European product is at the higher end of the spectrum worldwide,” Mr Gasan added. “We are looking forward to unveiling the Focus to the market in April. Ford has also invested greatly in a new commercial vehicle line-up which we will bring to Malta in the second quarter of next year. The range has been upgraded and extended according to customer demand.”

Mr Gasan said GEL’s new car business gained momentum in the second half of last year as the dealership won a greater market share. He attributed the growth to positive internal factors and attractive pricing on popular models. Other segments had admittedly lost out to the UK imports market but GEL had been successful in growing business volume from small car sales.

None of the stakeholders in the local car market were surprised recent statistics had shown two of every three cars registered in Malta last year were second-hand imports.

GEL’s market share had been won through a carefully re-modelled sales package as the dealership sought to become a one-stop shop for new car buyers. Over the last six months, GEL introduced service plans, extended warranties and insurance products in a bid to give customers a 360-degree package.

“Customers are less brand-loyal than they used to be because they consider the entire package,” Mr Gasan explained. “We have won new customers through a package that includes financing and service and we noticed an immediate positive impact on our sales. The emphasis on customer experience is having an impact. We brought a British after-sales manager on board who has introduced best practice initiatives that have been successful. We are also doing our best to position our models competitively and have driven costs down. Our lead times have also improved.”

GEL has gone down the same route as many other car importers by launching its own previously-owned car arm – the company was the first to market – and the operation had seen revenue double from 2009 to 2010, fending off furious competition in a thriving sector.

Mr Gasan also attributed the operation’s success to an attractive offering stemming from a multi-marque portfolio of vehicles designed to meet local customer demand.

Vehicles offered under the ‘Gasan Approved’ brand have to pass a stringent 100-point checklist and are then offered to customers with extended warranties and a breakdown service.

Mr Gasan admitted that the newly introduced scrappage scheme had given GEL’s new car business “a boost” but pointed out that it came at a cost as importers had to fund 30 per cent of the grant scheme.

He echoed other importers’ concern that dents to their core business could not be sustained indefinitely: he hoped the authorities would heed their call for the playing field to be levelled and for the market to iron out price disparities as much as possible without delay.

“Compared to our European neighbours, prices of new cars are still relatively high,” he added. “There needs to be a concrete decision on whether Malta is going to do away with the registration tax to make way for another tax regime.”

Mr Gasan explained car importers had encouraged the government to consider a system to be introduced in another EU country next year under which annual road tax increased as cars aged and polluted more.

“Cars would be turned around more often and the environment would be better protected,” he stressed. “Customers would be encouraged to buy new cars as the tax is staggered across the car’s lifespan and they are able to manage their finances better. For the government, it is a revenue-neutral solution and it would help it recoup the tax monies it is losing on new cars under the new trend. Importers, in turn, would be able to sustain their investment and safeguard jobs.”