FORD REVS UP EFFORT TO BOLSTER SALES
Company making China unit a stand-alone business
Ford Motor Co is revving up efforts to deliver its “In China for China” strategy, with a massive product offensive and more local executives, and expecting its success in the country to help boost its global performance.
The US carmaker is moving toward its goal of offering 50 new Ford and Lincoln-branded models in the Chinese market by 2025, with the first one, the all-new Ford Focus produced at its joint venture Changan Ford, expected to hit the showrooms later this month.
The Territory SUV, which is co-developed with another partner, Jiangling Motors Corp, is to follow soon. Lincoln’s first localized model, a small SUV, will join them starting in late 2019, according to Ford.
Electrified vehicles are also highlighted in the plan. The company said it will launch at least 15 new electrified vehicles from Ford and Lincoln. And the new Zotye-Ford joint venture will deliver a separate range of affordable all-electric vehicles under a new brand in the country.
“China is not only the largest car market in the world, it’s also at the heart of electric vehicle and SUV growth and the mobility movement,” said Ford’s Executive Chairman Bill Ford.
“The progress we have achieved in China is just the start. We now have a chance to expand our presence in China and deliver even more for customers, our partners and society,” he said.
To better steer its China business, Ford has appointed a China-born executive, Anning Chen, to head its operations in the country. An automotive veteran, Chen used to be CEO of China’s Chery Automobile and chairman of Jaguar Land Rover’s Chinese joint venture.
Ford said it expects Chen, who started his role this month as president and CEO of Ford China, to “bring to life the company’s global strategy while leading Ford’s future development in China”.
Chen was one of the latest executives with a Chinese background to join Ford’s China business. Earlier this year, Li Hongpeng was appointed its sales chief and Mao Jingbo, head of its Lincoln operations in the country and the AsiaPacific.
Li is taking steps to streamline its sales network, with a national distribution services division established in July to take up all marketing, sales and services operations of all Ford-branded passenger vehicles in China.
Previously, its two joint ventures — Changan Ford and Jiangling Motors — sold localized Ford cars through their separate networks, and Ford China sold imported models including the Mustang via its dealerships.
Significant market
Ford is also pinning hopes on the Chinese market to boost its global performance. To the end, it has moved China up in its business strategy to that same level of importance as North America.
“Success in China is critical as we reposition our global business for long-term success,” said Ford President and CEO Jim Hackett.
“We are strengthening our commitment to the China market and reorganizing our international markets to strengthen their performance.”
Among other measures, Ford China is now a standalone business unit that directly reports to the carmaker’s global headquarters in Michigan. Previously, it reported to Ford Asia-Pacific.
The moves are designed to accelerate Ford’s return to profitable growth in China; creating a Ford China business unit will allow for greater focus on the market, faster decision making and increased Chinese leadership within the company, according to the carmaker.
“China is absolutely essential to Ford’s profitability and growth,” said Jim Farley, Ford’s executive vice-president and president of global markets.
“As we leverage China to become a stand-alone business unit led by an experienced Chinese business leader, we are able to build a leaner business structure, make decisions more efficiently and become closer to our customers,” Farley said.
Ford also hopes that China will play an important role in its future businesses.
Hackett said: “Ford is committed to strengthening its leading position in electrification, autonomous driving and smart mobility services, and to becoming the most trusted company globally.”
“During this transformation, China and North America will become our two most significant markets,” he said.
Ford is one of the founding members of the board of Baidu’s Project Apollo. The Apollo platform accelerates the development, testing and deployment of autonomous vehicles.
Ford said its participation supports the Chinese internet giant’s robotics and artificial intelligence research efforts and contributes to the platform that will be key to developing autonomous vehicles in China.