Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : ICICI Ltd - (Nyse: IC) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (347)	3/8/2000 9:19:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 494

Ford India - Move up to the 'josh-zone' with ICICI and Ford Credit india.ford.com Ford sells with 'josh'- Shell out Zen EMI and drive home Ikon N Madhavan CHENNAI, MARCH 8: Pay the EMI of Zen or Santro and drive an Ikon 1.3! Thiswill soon be possible with the aggressive financing plan that Ford India isputting in place along with Ford Credit and ICICI. The package, which is being given finishing touches, aims at both attracting the prospective buyer of a small car and graduating existing owners of Zen into the premium segment through Ikon 1.3 at no extra monthly cash outflow. Speaking to The Financial Express Vinay Pipparsania, general manager(sales), Ford India said, "Our aim is to enable people move upto the 'joshzone' instead of limiting themselves to a small car." To facilitate this,the company has structured a package whereby people looking to buy a car at the top end of the small car segment can now own an Ikon 1.3, he added. The initial down payment for Ikon 1.3 has been pegged at more or less the same level as Zen VXi or Santro GLS II. The EMI for 85 per cent finance spread over three years will also be similar at around Rs 12,000. At the end of the third year a balloon payment has been structured. According to Vinay, the rational behind the structure is that the financial position of the customer improves from year to year and it would be much easier for him to make the balloon payment then. The scheme, he added, was also flexible and the balloon payment can also be staggered at the end of every year by linking it to annual bonus. Those opting for a balloon payment at the end of the third year will also have the option to turn in their vehicle and upgrade to higher models of Ford. The residual value of turned in Ikon 1.3 will be adjusted towards the balloon payment. By this Ford will ensure that it retains its customers within the family. The second scheme 'drive in a Zen and drive out an Ikon' 1.3 is more aggressive in the sense that it is a direct attempt to convert Maruti customers. Existing Zen owners can bring in their car and its residual value will be used as down payment. In case the car has been financed then a portion of the consideration would also be used to foreclose the previous loan. In both cases, the EMI will be same as that of Zen. In the last three years close to 1.6 lakh Zen have been sold and it comprises a good market segment for conversion into Ikon 1.3, says Vinay. Zen, so exchanged, will sold using the second hand market which Ford is putting in place using its dealership network. Ikon 1.3 is priced at Rs 5.35 lakh ($12,270) on road in Chennai while Zen VXi and Santro GLS II are priced at Rs 4.32 lakh ($9,908) and 3.84 lakh ($8,807) respectively. About 30 per cent of the total production would be Ikon 1.3 and Ford India has set a target of 21,000 vehicle for the year 2000. -Financial Express